The above chart is the Market Vectors Coal ETF ticker KOL. Nothing here yet but something to watch closely.
I suggested that Thornburg could still get cheaper and this morning bears that out.
Thornburg received a default notice as it missed a margin call. Remember these guys were at the top of the credit paper food chain. Another step away from denial and towards realization I would think.
I got a good laugh yesterday and again today as Merrill Lynch closed down First Franklin for good. First Franklin was the mortgage originator Merrill bought back in late 06' right at the top for north of a billion. Back on July 20th I said this:
As I have mentioned before, heads are gonna roll over at Wachovia regarding the buyout of that cancerous entity that was GoldenWest Financial. Just like the rocket scientists over at Merrill that talked Stan O'Neal into buying First Franklin. They don't get fired rather,they become part of the walking dead, guys/gals whose careers are dead ended. If I heard correctly Wachovia tripled their loan loss reserves, which I have no idea as to why they would when Greenspan, Bernanke, and Paulson have repeatedly told us sub prime is contained. Seems like a waste of productive capital to me that could be more prudently used buying inverted yield, Swedish Kronar denominated, collateralized Zimbabwean debt obligations. On margin of course! Imagine the fees !
Well it took a while but here we are. Boy I bet Merrill could sure use that wasted billion now instead of panhandling to the Arabs and Asians.
I have been asked via email if the muni market is something I would look at right now given it looks cheap. Short answer no. Cheap and value are 2 different things. Peloton tried to buy value after having a banner year and look what happened to them, dead! I don't care if Pimco or any other guru status outfit is buying this thing is not over by a long shot. I have a list of quality closed end muni bond funds that I will be looking at in probably 2-3 years (maybe longer). We have just started to see selling, distressed selling. Do not be fooled, to quote Bill Murray from Caddyshack, the heavy stuff hasn't even started.
Remember to continue doing more of what you're doing right and less of what you're doing wrong.
Good speculating to you all.Open Positions:
Long 6 units Currencyshares Japanese Yen ticker FXY @ $88.55 stop at $91.40
Long 2 units Ultrashort Xinhua China 25 ticker FXP @ $84.55 stop at $80.30
Long 4 units Ultrashort Russell 2K ticker TWM @ $83.30 stop at $75.55
Long 4 units Ultrashort Dow 30 ticker DXD @ $58.00 stop at $53.10
Long 2 units Ultrashort Emerging Mkts ticker EEV @ $81.40 stop at $74.90
Long 3 units Market Vectors Gold ticker GDX @ $51.15 stop at $48.55
Long 4 units U.S. Natural Gas Fund ticker UNG @ $45.05 stop at $42.75
Long 2 units U.S. Oil Fund ticker USO @ $80.30 stop at $76.55
Short 3 units of Deutsche Bank ticker DB @ $117.15 stop at $119.40
