Morning Update

The Asian markets are looking pretty solid with Shanghai continuing to soar. Europe is very bullish especially the FTSE. The US markets have opened weak though strength is picking up and it looks like we may go green after the hour. All hangs on the FOMC announcement at 2:15pm ET.

Oil prices continue to move lower which is a relief of sorts.Its time equities rally on oil moving lower like they are supposed to. Gold is weak this morning though it appears to be gaining while silver is up slightly. The US dollar is gaining strength though it may weaken after the FOMC annoucement.

There is news that Bear Stearns is trying to screw investors in its hedge funds by liquidating in the Cayman Islands instead of New York. Cayman laws favor the fund over the investor. I so hope Bear Stearns goes under. Such evil thoughts on my part. Maybe Jim Cayne, Warren Spector and Sam Molinaro will be the new Ken Lay, Jeff Skilling and Andrew Fastow. Imagine that !

This morning I've been buying AKAM and BWLD. Why ? AKAM looks dirt cheap here and if it gets below $30 I'll double my position. Trading less than 20 times 2008 earnings for a company growing earnings 30-40% a year. Internet content providers are here to stay. AKAM hasn't been this cheap since last July. And BWLD just got an analyst upgrade today. This restaurant is growing astonishingly fast and there is immense growth ahead yet the stock price has been knocked to the ground after reporting inline earnings.

Contempleting selling off some LVS and adding WYNN instead. WYNN earnings were phenomenol. The growth in Macau is way beyond anyones expectations. I like MPEL here too. Macau is going to be a lot bigger than Vegas. 3 billion customers withing a 5 hour flight. Wow !!

I expect a strong market reaction after 2:15pm. A very strong reaction. Don't know which way yet but I'm sitting on plenty of cash and ready to go in once I see the correct direction.

Recap - Bloody Thursday

I knew selling those inverse ETFs would bite me yesterday. And it did. Nonetheless I went short once support levels were broken notably the 13680 on the Dow and my profits were substantial though the beating I took on individual equities is one I would like to forget. Today seemed a capitulation day closer to a bottm than a top. Financials were murdered along with goldand silver, miners and housing. The homebuilders were taken out back and executed while the financials were disembowled until that late rally. The only positions that did not let me down were BIDU and FFIV. DXD QID SDS came mighty handy during the middle of the day all the way till 3pm. I was able to snap up some bull ETFs such as QLD DDM SSO for the ride back after that. I currently hold the bull ETFs in anticipation of further rallying unless ofcourse the blasted GDP report comes in below consensus.

Hank Paulson rode out on his white horse to save the markets today with his comments that subprime didn't pose a threat to the economy though this is a load of bull. The market is all about sentiment though and these calming words were all it took to reignite the bulls.

AMGN is up nicely in after hourse while RVBD is getting massacred. Speaking of massacres, AKAM took a bullet to the head today though it was a lot worse midday. AKAM is a steal at these prices. RACK is up in after hourse despite another loss. This company is on the buyout block though and the chances are it gets taken private or bought out by DELL or SUNW.

RMBS is getting killed in AH. So is NTGR.

NIHD looks like a buy at these prices.

I took a dip in SNDK under $56 .

Earnings Focus

AAPL is extremely volatile in after hours trading as it announces blow out earnings of 92 cents a smashing estimates of 72 cents. However guidance for the 3rd quarter was offered at 65 cents a share well below the average estimate of 83 cents.
AAPL will be a good buy below $120 in my opinion and it should get there in a week ot two.

AKAM is being beaten up after hours despite beating revenue estimates and meeting profut estimates. Q3 guidance was a little weak. AKAM is a great buy under $40.

BIDU is going through the roof as earnings come in at 54 cents vs consensus of 43 cents. The stock is up over 20% in after hours. BIDU is a position I have had since it was in the 90s and I may take more profits here.

GOING FISHING

I am going to find some issues to go long today. There is too much doom and gloom out there. Picking some high beta names. Some NTRI, a bit of BLUD, a little AKAM, a pinch of CELG and a topping of HANS. I think I'll toss in some TZOO and a helping of GOOG for good measure.And I'll close out that blasted AAPL short position for good measure. Maybe we'll rally, maybe we won't. But if we rally I think I may outperform. If not I will just dump 'em all.In a bear market its best to position for a rally before the actual rally because, once you spot the rally its usually too late.