MARSROX

Do Oil and the Market Still Have a Lot of Downside?

Hi Jim: I worry that you are correct. I've lost too much money betting on SKF (double down financials), RIG and SLB (but got out "early"). POT, AGU, MON went down not up on fantastic earnings, and today CLR the main Bakken Play was hammered as it beat revs and earnings. The dollar was way up today for no apparent reason hurting my Swiss Francs and Swedish currency plays. Gold/silver down, too, even as the FED pumps out paper. MER way up on booked losses of $13 million and share dilution. The world is upside down. I guess it's time to leave the party.

Why I'm Committed to the UltraShort Financials ETF

I'm with Jimmy that a couple of the negative ETF's are appropriate in today's (toxic) economic environment. I own SKF and watched it dive today, although I wondered if it would rise up "green" during the usual late-afternoon sell-off. Along the way down I considered selling, but I couldn't think of a fundamental reason (besides taking profits and creating a taxable event) behind the bank stock increases. I only have these shares as part of a diversified portfolio so I didn't reach Max Pain levels today. I think it's time to buy more during the next couple of days. Historically, I had traded SKF with stops and have been "stopped out" on 10 point down moves that resolved later in the day back to where it started - or maybe higher. I wish I understood how to hedge with options.....So instead, I accept the volitility with an eye for the prize in the long run, but who would think that for no reason that I can understand, "financials" would have their biggest one day rally in twenty years! I missed the "All Clear" bell ringing for financials. therwise, oil moving down to the bottom of it's Bollinger Bands doesn't seem to me to affect the amount of foreclosures or rising credit card debt being "walked on by debtors". Of course, one positive for banks today was due to the plan to investigate persons instigating "naked shorts" and rumour mongering against the likes of Lehman, Citi and the GSachs. Wouldn't it be ironic if these bad people are found to be employed with ......Lehman, Citi and GSacks?