Changing Rules As We Play The Game

Positions
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+100 FAZ @ 17.03 vs. cost @ 17.02
+100 GS @ 114.47 vs. cost @ 74.79, stop @ 105.25
+2000 UYG @ 2.89 vs. cost @ 2.00

Markets
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Respected financial sector analyst Michael Mayo gave his gloomy view on financials and the sector is the worst performer on the S&P500 today. Asians markets continued to rise, and European shares were up most of the day led by banks. Mayo's comments called the FASB accounting relaxation "window dressing." The FASB is purportedly an independent board with a duty to provide investors fair, timely, and accurate information to make economic decisions. Nothing about their relaxation was independent as the FASB was heavily swayed by Congress and banks. In what other realm can we change the rules as we play the game?

Regardless, the change is in effect, and our European counterparts are not following suit. Equity markets are breaking a 5 day winning streak and the VIX (all about buying puts - "fear gauge") climbs back above 40. This is a very light economic data week due to the holiday shortened period. Next week kicks off earnings season for the first quarter and we'll get to differentiate between facts and earlier bank CEO claims of early 2009 profitability.

GS reports 4/14 and the consensus is for EPS of $1.62.

Live - Monday from wet n' wild Queens,
TM