Proshares Ultra and Ultrashort ETF's

[fastlizzy]

WFC $17+ in AH......

and I wanted the 15 calls this morning.....oh well. Didn't want to watch too much today.

[MWM]

Thanks! If JPM gets back to $30 I'm gonna be a very happy guy!

[AD]

MWM, nice tanker call, and 150 call

[MWM]

If SKF can just get back to $100 my JPM calls will be kicking Ass!

[MWM]

SKF going back to $150 minimum me thinks...

[babycakes]

srs...in again at 67.84....stopout 65.84

[fastlizzy]

U2! I like WFC too!

[MWM]

I agree, i think 8000 range looks like it wants to hold... I'm loaded on JPM Calls!

GL! Liz!

[fastlizzy]

FAS $10 calls....


I'm in at 1.50 this morning! How can they go lower? I think financials have to go up now!

[babycakes]

DXD...in for some at 62.98 for this dive back below 8K.....stoploss 61.28......I will be able to sleep better at night holding this and qid rather than the crazy srs.....not sure if i'll hold aapl into earnings after the bell

[babycakes]

excuse me.....62's.....

[AD]

babycakes, that would imply one heckuva post Inaug rally.
OF course, I was looking for SKF 70s when it only made high 90s;--0)

[AD]

Mort Zuckerman; Brace for the worst in '09. Huge downside risks to the stock mkt....
Predicts BAC , C will survive due to US guarantees

Commercial Real Estate at especially high risk. Office buildings less so than other.

He does say 'unless the govt' steps in.
He didnt' say to what extent they'd have to be involved, to avoid the worst.

[babycakes]

thanks....lookin for reentry on srs at high 52's

[AD]

hey, a worthy thing to look out for m177... but I'll take the contrarian side, on the hope that no such manipulation occurs. Now, if they'd go after the nakeds, I 'd be very pleased and encouraged by the new administration.

babycakes, nice work on FAS

[m177]

Watch Obama's new SEC chair come out and ban shorting financials and disable etf's that do the same tomorrow...lol that's my prediction.

[AD]

NEW YORK (Reuters) - The collapse of electronics retailer Circuit City (CCTYQ.PK) could drive down shopping and strip mall rents, and deal another blow to commercial mortgage-backed securities' (CMBS) investors who have already seen their bond prices slide.

http://www.reuters.com/article/businessNews/idUSTRE50K01520090121?feedType=RSS&feedName=businessNews

[babycakes]

SRS....sold at 69.84..last post of day....shocked how well MO is holding up

[babycakes]

sso....added at 21.16....still holding srs and qid and short aapl....have 18.10 order in for msft

[ktcougar]

lol....talking about a falling knife....ouch!

[MWM]

I'd love some SKF calls at $100 but they are trading over $3 bucks... I don't think so, now if they were .25....

[AD]

oh, i always lose when I say ,,wtf;-0)

[ktcougar]

Still getting killed....stopped out. Sheeezzz

[ktcougar]

FAS....getting killed! WTF in some at $8.72.

kt

[babycakes]

DBA.....in here at 24.96.....stoploss 23.85

[AD]

rally ho, c'mon

[babycakes]

fas...out at 10.39 for the quicky

[babycakes]

fas...in here 9.93...stoploss 9.84

[MWM]

Who said anything about me making money lately lol... I can always get up just not smart enought to take it and run! Gotta change that trend!

[AD]

Well, it's no way to make money. I never made money in the mode of letting profits go away. Always made money when relentlessly taking profits. Duh!Even if leaving a lot on the table.
I"ll give ya the last word...

Unreal SKF, nearly doubled in short order.

[MWM]

I do it all the time! lol!

[AD]

it is, MWM, but passing up a very nice gain is unacceptable, esp letting it turn red.

Just hoping this reminder touches some others. Take the money!

[MWM]

It's hard to play it perfectly! if you have profits still then you are doing just fine!

[AD]

yeah, well, although my acct is up nicely on the day from the PLD short,, I left a pile on the table.

Then, bot BCS pm, and didn't sell it on the first beautiful pop.
So I can make the same mistakes over n over... crazy!

[MWM]

GL!

[AD]

who knows... I am long TNA , and BCS. So happy to see it move up.

[MWM]

I think the market is ready to bounce a little here soon... I'm with-staining for now...

[AD]

Anyone shorting REITs,, notice the lower priced ones, with the draw of single digits , seem to move the best. FWIW.

Covered PLD obviously too early this morning.

[AD]

lol, and down go the REITS. Wow, what move SRS SKF.

Reminder to all, take da money when offered. There's always another trade.

[AD]

covered most of the PLD from Friday. WHEW! thought I'd get burnt on a hot obama open. Nice start to SKF SRS... sell the gap boyz n girlz. Don't be greedy ... at least 1/2!

On Joe's idea, bot BCS 4.14

I'd like to see a nice smackdown open for buying opp.

[MWM]

Warning: These REITs Still Pay Dividends, But Not In Cash

http://www.reitwrecks.com/


"I'll gladly pay you Tuesday for a hamburger today." Wimpy, character from the cartoon series Popeye


As many of you may remember, Wimpy was not only a character from the Popey cartoon series, he was also a glutton for hamburgers, and he would consume them at a ferocious rate. Of course, "Tuesday" would never come, and Wimpy constantly secured himself a free lunch.

These days, REITs are increasingly turning to a Wimpy-like preservation strategy, "borrowing" cash from shareholders without any real intention of ever paying it back. How are they doing this? Simple. because they have to Instead of paying dividends in cash, they are electing to pay out dividends in stock instead.

Presumably these new shares will someday tuesday? pay out cash dividends, but for some struggling REITs that day may never come. Adding insult to injury, shareholders will need to raise cash to pay income tax on the dubious value of the stock they receive.

2009: The Year of the Stock Dividend

However, numerous REITs really have no choice but to turn to this dilutive dividend strategy to recapitalize their balance sheets and conserve cash, and many REITs will be forced to make this declaration in 2009. Indeed, two more REITs made it official last week.

On Wednesday, Vornado Realty Trust (VNO) joined the list, declaring a $.95 dividend for the quarter, but only 40% will be paid in cash. The rest will be paid in the form of more common stock, as if shareholders didn't already have enough of the stuff. And there's no need to push the "buy" button here folks, it's practically automatic. talk about a DRIP

Not surprisingly, VNO's already underwater shareholders quickly signaled their lack of enthusiasm for this financial version of Chinese water torture, selling the stock off by $2.28, or 4.5%, after the news was announced. The stock is down significantly from its 52 week high of $108.15.





Meanwhile, Sunstone Hotel (SHO) announced that its dividend will consist of approximately $7.3 million in cash and about 5 million shares of the company's common stock. This amounts to about 80% of the dividend.

The IRS Says Do Not Pass Go; Do Not Collect $200
All this monkey business has been sanctioned by the IRS, which recently issued Revenue Procedure 2008-68. Rev Proc 2008-68 clarifies the circumstances under which REITs may issue stock dividends and still maintain their REIT status, and it provides a clear safe harbor for those REITs that are considering this IOU tactic. Click here for the full text of Revenue Procedure 2008-68.

With the new IRS guidance, REITs now have a green light from the IRS to pay out up to 90% of their dividends in stock. I first wrote about this IRS-sanctioned funding strategy in the post Dilutive Divends: Coming Soon to a REIT Near You! For background on requirement for REITS to pay out 90% of thier taxable income to shareholders, see the post REIT Definition. Expect the list to grow longer, but for now REITs paying out dividends in stock include the following:



REITs Paying Dividends In Stock
REIT NAME SECTOR Current Yield (as of 1/2009) QUOTE
AIMCO Apartment REIT 22.8% (75% Stock) AIV
Anthracite Capital Mortgage REIT 60% (90% Stock)** AIV
JER Investors Trust Mortgage REIT 125% (90% Stock) JER
Sunstone Hotels Hotel REIT 53% (80% Stock) SHO
Vornado Realty Trust Office & Retail REIT 7% (60% stock) VNO


** Anthracite has signaled its intention to pay 90% of its dividends in stock, but has not yet declared such a dividend.

With these IOUs, REITs are able to preserve prolong the agony REIT status in the hopes that the capital markets will someday become viable funding sources again. Clearly however, investors are betting that JER's ability to resume paying cash dividends is about as likely as the W being voted back into office.

Unfortunately, the unfolding REIT dividend situation is not very amusing for shareholders. I can't imagine any capital-starved REIT electing not to take advantage of this revenue ruling at least to some extent. This will further erode confidence in the sector and prolong the recovery in REITs.

[snowcloud]

Yes, I agree - very swift indeed (yikes)!

[AD]

yah, trading SRS intra day can be something like riding a bull.

Gains (or yikes , losses) are swift.

[snowcloud]

Thanks for the link. The squirreliness is exactly what I'm attempting to play with URE and SRS (especially SRS). Limited success so far, but getting better. ;)

[AD]

ETFs squirrely at best ...http://www.marketwatch.com/news/story/story.aspx?guid={7BD723A4-C1C2-4302-BD49-EE8B8EBB3AA0}&siteid=rss

[babycakes]

JNK....going to start building a position in this one as a pairs trade to my TBT holdings....only a 4.25% exposure to financials....15% yield....7% above the 50dma (good risk/reward).....
https://www.spdrs.com/product/fund.seam?ticker=JNK

[MWM]

I hear ya...

[fastlizzy]

Oops, I was talking about PALM.....

I did not short BAC but I wanted to first thing in the morning over $9 and then I got distracted. Watching too many things!

[m177]

Today marked the official end of me holding my breath waiting for REITs to tank and SRS to explode...

The fundamentals cannot be ignored but I'm going to try to flow with the market and not worry about jumping on that trade until REITs start making headlines like the financials have.

It's just too frustrating...but I will be ready to act when the heavy selling starts.

[MWM]

Reits are thinly traded for the most part, I'm just going to sit and wait for that fall from grace to come... Once every financial is demolished I think the big shorts might turn their attention to the destruction of the reits... lol!