Tuesday, November 8, 2011

...

I may have to eat my words from yesterday.  I'm not sure what Berlusconi's resignation does, exactly.  It doesn't mean austerity/reforms will pass or that they will be sufficient, and even if they do, who knows when they will pass, and even if they do -- Italy is in a recession -- anything they do now is insufficient.

My only guess is that the ECB's boycott of Italian bonds was enough to push him out.  Maybe I misunderstood his ambitions.

Anyways, I can't hold my position.  Oil at this level is just stupid - plenty of slack in the market, low U.S. economic growth, the Euro is in recession, China is slowing...which probably means its going to fall, but I can't hang on - margin calls.  Maybe I'll get back in if it looks like its coming back to reality.

Taking my lumps: Sold SCO at 41.99.  Loss of 18%.  Should put the PSFI index at 125%.

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