At the end of the day, I got smoked out of my [[RIMM]] short, taking a “ball busting loss.” However, since I’m still long RIMM, it was a wash, basically.
This is a losers market, with exception to the pending “palladium supercycle,” powering shares of [[PAL]] and [[SWC]] to unsustainable levels.
Banks and commercial re got lit up again, enriching “The Fly” with many points in his [[SKF]] and [[SRS]] positions.
My market position is the following:
Inflation in food commodities and oil/gas will decimate the consumer. This will lead to significant earnings short falls at big retailers, like [[M]], [[KSS]] and [[JCP]]. Specialty retailers, like [[DECK]], may be able to squeak out another quarter or two of “mind numbing” growth, but will fail—eventually.
The credit crisis will spill over into commercial paper and real estate. Liquidity in the capital markets will dry up, forcing money losing companies to either fold tent or seek unfavorable capital injections.
Oil stocks will begin to disconnect from the price per barrel and trade lower, as recession expectations dampen forecasts. The same goes for Ag. Despite ridiculous wheat prices, stocks like [[MON]], [[AG]] and [[POT]] will fall.
In short, everyone is a loser. Get short RIMM and find a myriad of upgrades waiting for you in the morning, effectively ripping your face off.
All in all, despite RIMM, I was up 1.2% today, erasing yesterday’s losses.Comments »