Friday, February 23, 2007

Quick Friday Vacation Post

ResMAE's soon to be gone forever web page: "ResMAE is setting a new standard of excellence in the subprime wholesale mortgage industry. With forward-thinking internet technology, a broad menu of competitive products, and fast processing through regional centers nationwide - that's mortgage lending done right. That's ResMAE"

The company will be auctioned off for pennies on the dollar next week. But that's really the past. I think you've got to look beyond subprime prime pure plays (though plenty of good shorting opportunities are still there even though alot of "easy money has been made) and look at lenders with a mixture of products. Scans of the options chains show bets are being placed against many of them. Use your imagination for your due diligence.. not that hard to come up with a good list.

Liquids on yesterday's energy inventory data went through the roof. Here we are only in February and XB:CL front month crack spread is up near a whopping $15... amazing (in my best german scientist accent). This certainly keeps the incentive in place for refineries to refine crude, and demand remains strong as well at over 9.1 mln bpd in the 1st quarter, according to the Schork Report. I am also still short nat gas but ready to dump if the price jumps up into the high 7.80's.

Metals... what more can be said. I remain long gold and have also jumped into silver. Both are looking over bought.. buy on the dips is my motto.

One question I continue to ask, is why is VIX March call open interest is into the 5 digits all the way to the 20 strike?

Lazlo's ticker sense has noticed the recent high ticks that have been mentioned here...

1 comment:

Bill Luby said...


I hope you're enjoying your vacation and not spending too much time looking at the markets.

FYI, I posed a possible answer to your question about the VIX March call open interest at

The bottom line is that I think it may have something to do with the excessive April 11 put open interest.