Green Pond

Yes, green.

Not for the day, of course, but in my new trade.

This is not how I pictured the day to progress. I am now short. Never before, might never again. But I'm short and making money. Incredible.

After unloading my portfolio -- wisely, too, since BAC (8.07) has slipped another 15 cents since my sell -- I finally realized that FAZ would've been my perfect hedge starting in premarket today, or even after the opening bell. I passed up a buy at 10.95 or so and it kept inching up as BAC continued to sink. I finally mustered up some nerve and got in at 11.25, where it meandered for awhile before running up. The final 20 minutes or so, it leaped to 11.71. I added more at 11.67.

The financials could get a boost somehow tomorrow morning, but I'm thinking shorts will pile on again plus there will be more panic/surrender selling. I have a stop loss order in at 3 percent, which still puts me at a very small loss at 11.28 and 11.35.

FAZ, like FAS (long financials) are hyper, steroid financial stocks, so it can reverse super fast. If I can sell FAZ close to 11.67 in after-hours trading, I'll do it.

I know enough about Citigroup and Bank of America now to realize that one or both could actually go under, or possibly break up, once they run out of cash. And if they don't run out of cash, they'll probably have no other choice but to convert that TARP money into shares, which will dilute the share price and drive it down -- making more profit for FAZ owners.

I have to say this, too: I have always hated taking out loans, hated credit cards, which is why I can't stand it when people overdo things and get into massive debt. It's a major reason why the economy tanked -- we Americans hated to save, unlike other nations (Japan, for one). The economy tanking did none of us any good, savers or not.

Anyway, with that perspective on credit lines and markets, it's no wonder I never shorted financials sooner. With BAC and C talking about bad loans and worsening credit situations, it's almost a no-brainer.