Week recap 03/15/08

Relatively hectic week in the market.

Net Liquidation Value: $13173
Position: Long 100 S@ 6.05, Long 100 KRY @4.21

My GS short position was liquidated for 158/sh. The Fed meeting next week along with earnings make me relatively uncomfortable holding this stock short. Afterall, the analysts already started to downgrade the stock- so the expectation for GS is set lower at current stock price. The risk to reward for holding out is no longer favorable.

Lately, there has been more LONG ideas than SHORT ideas coming from me. It is perhaps too early to call a "bottom" in this market. But some stocks already appear to be relatively "cheap". On top of that, we already have most of the recession expectation build in. The risk to reward on playing on short side right now is about 50-50 IMHO. There will be more stocks collapsing in prices, but the selection has to be more careful compared to 3-6 months ago.

And whoever bought 55,000 BSC $30 March puts, he/she is going to jail. That was just plain stupid.