Friday woes

GDP commentary
**************

Equity futures are taking a beating, down more than 2% just before the
open on news of Citi dilution fears and sharply worse than expected 4Q
preliminary GDP (-6.2% vs. -5.4). Inventory reduction was the only
positive, although it contributed to a 4Q whacking. I think this will
provide a slight boost to 1Q 2009 GDP and that the losses in GDP going
forward will be less severe than -6.2%.


Positions
*********

FAS blew straight through my $5 stop this morning and I thought about
dumping it pre-market. I removed the stop-loss order and am watching it
because I think financials bounce from the pre-market lows. I am
watching it closely in case I am dead-wrong. Didn't expect financials
to take a beating because most of Citi's dilution was public
information. Ironically, both measures of bank health, Tier-1 Capital
ratio and TCE (tangible common equity) are now Citi's strengths.


Closed UCO last night in after-hours trading at 8.01 in advance risky
GDP report. May look to re-enter soon.


Returns
*******

-1000 UCO @ 8.01 vs. +1000 @ 6.505
Holding period return = 23.13%

Something tells me that financials close higher