Email – #434

I have been saying for some time that the selling in the financials was overdone, and I still believe it even though we have felt the brunt of it on the way down with the ceaseless selling in a couple of our holdings.

Just remember that I also said that when it snapped back, it would be just as violent a move on the upside, which means strong gains for us. We’re not out of the woods yet, but I’m confident that we have time on our side.

The financials will likely trade in a range soon, but the worst may be over for now. And, our anti-oil play US Air is breathing new life after oils recent downturn, hitting a high of over $1.30 this afternoon: almost a double. Of course, the good numbers and strong cash position reported today didn’t hurt either.

I know that right now it’s tough to keen waning optimistic about our LEAPS strategy when the market is being massacred. But always remember, we’re in at a low cost and we have lots of time to overcome these present adverse events.

I will be traveling for the next couple of weeks, but I will be keeping a close eye on our holdings and alert you to any changes.

Karim