Beat the S&P

Returns
*******

-1000 FAS @ 5.34 vs. +1000 @ 4.73
Holding period return (HPR) = 12.90%

Total realized HPR = 18.83%

Definitely disappointing given the two ETF highs yesterday, but being
seriously long and returning 19% as the S&P500 tanked this week is
somewhat rewarding. I just cannot accept the risk of holding FAS
through the weekend, even though huge falls in this ETF are typically
followed by gains in the subsequent session.

My strategy in this downturn is to generally avoid single stocks because
sector specific opportunities are easier to visualize without assuming
blink of an eye catastrophic losses - Even vs. 3x leveraged ETFs (see
Direxion)

Long-term prospects
*******************

The two year treasury broke its 100 day moving average yesterday as
supply issues outweigh the flight-to-quality trade. The 10yr treasury
crossed 3% despite the weekly plunge in equities. When America bounces
back, and I don't say if because our propensity to spend will eventually
return, rates will rise from current levels.

PST & TBT - both of these ETFs short treasury bonds. Go long in a
retirement trading account and forget about them.

Equity summary
**************

As for the markets - Dow and NASDAQ key technical supports (7,103,
1,374) have temporarily prevented sharp losses. Markets are led by the
tech sector, while banks continue to be a drag, a huge drag. If we close
in the green, the NASDAQ will lead the way.

An ugly week. Despite the sizeable weekly gains, I can't help but feel
queasy.


Live from Queens
TM