Thursday, December 11, 2008

Switched SKF to FAZ... Bought DXO... What else?

FAZ 3x bear was just a matter of time when it was going to make a move. The fact is it was cheaper to get in and the potential going forward is a 52 wk high of 160s were reasons to switch from SKF.

I did buy 200 DXO. My feeling here is that oil will have to go up from here. Why? OPEC coupled with the devaluating of the U.S.$ will not make oil any cheaper (not to mention the general media talking about oil to $25, a weird but useful signal to go contrarian). And then we will have a double whammy on our hands. Unemployment AND Higher fuel costs... my 2nd block of 100 shares was NOT suppose to go in. Rather i was looking at adding to FAZ... oh well... I will unload my 2nd block on any hints that oil goes below $40...

oil news is ahead of us, so it might have been a bad time to get in on DXO... otherwise my switching from SKF to FAZ just when FAZ broke above $44.

So, in the real world the advice to everyone should be to get out of your debts... NOW... the govt wont be able to take care of you - so save for yourself.

btw, i am looking at UDN calls or UUP puts... i.e. shorting the dollar. Do you honestly see the dollar getting fixed any time soon?