Trades

Closed NFI @ $17.14 - this was a disaster. If I had done my homework before buying it, I would have recognized the kind of self-reinforcing vicious circle that George Soros was always looking for.

Now I'm looking at a few to short. The homebuilder's index (ITB), Countrywide (CFC), and Downey Financial (DSL). Downey had 90% of their portfolio in negative amortization loans, which will get killed when prices fall, which will happen when foreclosures flood the market.

Closed QQQFX.X (June Nasdaq 100 Trust [QQQQ] call at $50) at $0.21 at open. It had been at $0.60 at one point. I bought it at $0.20.

With currency, I changed my shorts on EUR/USD and GBP/USD to long JPY/USD. I think that with deflation coming to the dollar (and therefore lower rates), the Yen will be comparatively stronger. I think the Yen has a larger chance of increasing rates than the Fed or the Bank of England.