Top of the Curve

boom

I think we got the first part of the market downturn this week - SP took a pretty good shot even with the Fed pause. Funny how every time there is a terror even the US market opens down a few handle then finishes positive. At least with the subway bombings and this plane.

My LUV southwest airlines puts have paid off pretty well - unfortunetly through the terror fears as opposed to the company heading down. CFC Charter one is getting creamed which is paying off well - the company basically said no one wants a mortgage and apparently thats a huge surprise to mr Market. I also sold my MSFT stock position at 24.41 however am still long DELL (Killing me) and INTC (Flat). I added to my market short position with some SPY puts - march 07 with a 127 strike which was ATM when i bought them wednesday.

I think the market is going to range a bit for the next week or two as most people are still on vacation. If the market catches a bid I will use that as a chance to short some more - as well as getting long volatility. I have also been looking at GM puts as I think the price of that stock is going back towards 20 - its a matter of how expensive the options are. The consumer is in its last throws I believe and this is what will lead to a recession.

posted by BKo @ 2:20 PM