Sunday, March 02, 2008

"It could be worse - it could be raining"

Whenever I feel stressed I watch my favorite old comedies - no obscure language, no blood, no guns, no "Idiosyncrasy". As you figured Mel Brook's "Young Frankenstein" was on my list today.

So, what could be worse for Freddie and Fannie? Technically - a lot! Fundamentally - even more. So, would it be major stupidity to try to play long side during long term decline? May be...

Last few days action looks really interesting. Wednesday's and Thursday's huge volume did not break Dec/Feb lower trendline ( at least, not by much ). Friday in horrific ( especially for financial ) tape - it was up.
I opened seed position (FRE) Mar30 calls on Friday - might add Monday.
In my mind it is less of a "Tax on Stupid" than PowerBall. Although loss might be the
same - entire bet :)