Time to Trade!

ABX has dropped almost 30% since I bought it, with a 15% drop in IAG. I'm going to sell IAG and roll over the position into ABX.

EUO - I am going to get aggressive here and buy this at $25. The Euro nations completely denounced any bailout for eastern Europe over the weekend. Who can blame them? They have their own problems - economic forecasts are for Ireland's GDP to shrink by 20%. However, if eastern Europe defaults, it will be western Europe's banks that will be left holding the bag. Talk about shooting yourself in the foot. What I do expect to see is aggressive cutting by the ECB, as inflation is now under 2% at 1.8%. This will cause the Euro to weaken, possibly to par with the dollar.

Though it leaves a bad taste in my mouth, I'm going to sell FRO here with a huge loss. I should have sold it at $25, but I didn't. The reason I bought it, the oil price contango encouraging tanker use as storage, is gone. That's why I bought it, and there's no reason to hold it now. As the contango disappears, all those tankers will come back on the market. In addition, the fleet is supposed to grow 10% this year, which is a scary thought.

Trades:

sell all IAG, +65%
I also sold the OZN that was rolled over into IAG for a weighted average of +39%

buy 10% position, ABX @ $29.20.
buy 10% position (20% including ultrashort leverage), EUO @ $25.36

sell FRO, -37%