Most of the market was playing wipeout today but we had fun riding the waves!
Tonight our members are hopping and bopping to the Croc(s)adile rock as our beloved CROX reported their expected Q1 loss (on revenues that are up "just" 40% from last year) but kept the full-year guidance as sales in Europe and Asia were up 109%, now more than half of all sales!
CROX is a typical example of the kind of US company that can ride out a US recession as their products just get cheaper and cheaper from an international perspective and they can readily be shipped to where the demand is. With half of the stock's float shorted, we can expect a pretty good squeeze in the morning.
Of course we had an excellent day as we wisely covered into yesterday's rally and we took a chance and uncovered a little at the close as it was a very nice 200-point drop so we're expecting at least a pathetic bounce in the morning. It was another beautiful day to be day trading as we were in the QID $38s from yesterday, chickened out and then went back in just in time for a 35% gain but GOOG puts gave us a nice double and we picked up a great new spread on TIE. Much more daring were puts we took on USO, COP, OIH and APC as oil tested $123 so we'd really like a good pullback now.
We finally got a chance to improve our Applefly position, rolling the $175 callers to the $180s, hopefully making the right bottom call near the end of the day. We did that at 3:17 and at 3:21 I made a general comment to take out some callers – more of a gut call than based on anything newsworthy.
Aside from Bush's threat to veto the aid to homeowners facing foreclosure, the Financials were spooked by a possible tightening of the ECB tomorrow. We're pretty much playing for that NOT to happen, hopefully helping the dollar and pushing crude down. There was a 5.7Mb build in crude vs. 1.6Mb expected yet that didn't seem to bother the energy traders who continue to BUYBUYBUY.
Tomorrow should be very interesting.
