NLV $17600 Wachovia on the chopping block

Shorting VIX has its consequences. It soaked up all my buying power.

By trading in a deadbeat summer, I would like to remind myself the following:

1. Reduce position/stop trading during summer months- dog days of summer is for beaches, nothing good ever came out of trading in summertime.

2. Apple stock moves when there's a product announcement- earning announcement is a non-factor- unless they missed like RIMM did. RIMM on the other hand, is an earning play.

3. Trading the S&P500 is dangerous, I'll stick with the cubes (QQQQ).

4. Oil is still sh**, there is definitely more room to go- pure technical.

5. Market doesn't always trade on fundamental- this week we are trading on bailout plan- ignoring all the crappy econ numbers.

A word on Wachovia:

1. If the bailout plan come through, WB can jump a good 30-40% as they need to get rid of their mortgages ASAP.

2. If the bailout plan failed, don't look for any potential bidder, there won't be any. WB will likely get the shaft up their butt like WaMu did.

JPM paid $1.9 bil for WaMu, what exactly did he buy? Whatever it is, it was much cheaper than $7 bil he offered them couple months back. Only JPM buys bottoms, no one else can. Ask Ken Lewis at BoFA.

Jamie Dimon is definitely feeling "the Woo Hoo!" (www.wamu.com)

Analyst's trade of the day :

Short BAC, Long JPM