9/1/2006

Well the job number was tame enough to rally the market a bit higher. Overall it was a great week if you were long, since I'm not it was a disgusting week/month. The weird thing is that the vix is almost at where it is before the selloff on May 8-9. This tells me in the coming week we either rally higher or consolidate after all the traders come back from vacation. I think the latter, and a rally in October during the 3Q earnings is more likely. The market basically has factored that the Fed will not raise rate on Sept. 20, but for their next meeting in October it is still a toss up. So September should be a bumpy ride and for me to cover my shorts, hopefully for a gain.

Longs Cost Unrealized g/l:
vlo 63.83
uso 65.70


Short Cost Unrealized g/l:
rimm 73.87
aapl 62.40
joyg 42.16