Friday, August 25, 2006

vodka is bad

I read an interesting article on GM and the "Wealth Council" or plunge protection team. The article claimed that the PPT stepped in and reverse GM's stock price via a merril upgrade when the stock was down around 20. its interesting because GM is going into the shitter for many of the same reasons that america is a whole is facing. The saying is something to the effect of as goes GM goes the USA. So GM crushing itself under debt, healthcare problems, retirement/pension issues and nothing to sell (export) so it turns to foreigners (Nissan/Renault or in the US case debt to china, middle east etc etc). Pretty fascinating.

So Since last post Ive added to my SDS around 68 bucks, sold my SSRI in 23.5 area, bough some GM jan 07 32.5 puts at $5. Im wondering what to do about my nat gas position - im going to hold it through hurricane season at least. and for the 10% div i can take the pain. I want to also add to my mkt short position - I sold my CFC cause I was a bit concerned of a market rally and once again I was too eary. I think the stock is now under 33. Still I made 65% on that trade...not too shabby. i also like puts right now instead of shorts cause volatility is so cheap - so if the market starts to stumble you could really rake in some nice money.


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