Barring a huge move, I am done for the day. I took advantage of weakness in SRS and DUG, in order to add to my positions. At the same time, I am very tentative to sell out of any longs.
As an aside, it is amazing to see commercial Re stock draw investor interest. For example: FRT has very little cash and $375 million in debt due in 2009. As of now, it would be impossible to roll that debt over. Moreover, if they were to raise money via secondary offering, it would be dilutive as a mother fucker.
Within CRE, dozens of firms face similar, if not greater, risks. In no way would I be a buyer of commercial RE stocks, especially while the credit markets are closed to them.
The text book says the market should be down 300-400 points, based upon GE getting the “homo hammer of certain death.”
However, for whatever reason, investors are optimistic over a pending GE crisis.
Fucking idiots.
I refuse to sell FAS, UYM or even PFG, for fear of late day shenanigans. My best guess on the future direction of the market: next week, we dive lower, based upon worse than expected numbers coming out of big oil.
As of 3:00pm, I am 40% long, 50% short and 10% cash.
As an aside Update: California has 2 months of cash left and a 9.3% unemployment rate. Can you say “higher sales taxes”?
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