Market Rebound?

Today saw a lot more green upticks in the market than in the past few days. From First Solar (FSLR) rising almost 10% to Diana Shipping Inc. (DSX) running up nealry 7%, the moves were able to make the longs smile. Not to say shorting a stock cannot still make you money though. People quickly forget that MBIA Inc. (MBI) just sold a 1 BILLION offering at a set price of $12.15 per share. Before the trading began Monday, the stock was holding at a sunny $14.60, but that did not last. Increased fear that its days of a AAA credit rating were numbered, helped trade the stock lower, closing today at $13.58. Furthermore, AIG came out with two-month losses at $5 billion which sent most companies in the financial sector lower.

Looking forward, there are many ways to play this market. In a CBS Marketwatch fantasy investing game, I am shorting MBI and SHLD. I am long FSLR, DSX, GOOG, AAPL, and POT. The bulk shipping, agriculture, and Solar markets have fallen to a P/E worth looking at. With FSLR reporting earnings on Wednesday, I believe we are in for a nice suprise and a continued run-up in the stockmarket. I will check back in soon. Good evening.

Eric Arrieta
President/CEO
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