7/3/2006

A bit surprised that the market rallied in a low volume and half session day. I don't like it because on Wed when everyone gets back they might tempt to sell off in anticipation of 2q earnings. Today with the run, I shorted APS at 48.60, this stock has pretty much recovered from the selloff after the announced merger. I think it will continue to go lower after the merger, because they paid heavy premium for those two companies. The oils should be topping soon, it is only about 2 dollar from the top and I don't see any major change from a few months ago. Everyone is anticipating a heavy driving season for the 4th to draw down the gasoline. However, once the inventory number comes in, the truth will come out, and the sell off will begin.

Longs Cost Unrealized g/l:
rimm 68.7 +2.5
adsk 35.16 -0.16

Short Cost Unrealized g/l:
vlo 63.30 -3.6
tso 70.55 -4
APS 48.60 -.20