Great Net Effect

I am having a beautiful effect in the portfolio right now. My gold options which were up big time 1-2 weeks ago (re: $1,000) - have fallen almost back to my buy points as inflation fears are in the economy and the response has been an expectation that interest rates will keep rising. This has in turn strengthened the dollar and put some dampers on the gold rally.

The beautiful counterbalance is the PUT options on Pulte and Wachovia. The higher interest rate expectations are driving down both - as traders bet Pulte will not meet numbers and that Wachovia will be dealt the inverted yield curve that all banks hate so much as they can no longer profit off the short borrowing to long lending spread.

Anyways here is the portfolio update - if the PUT options continue to strengthen, I may unload both positions and go to cash so that I can buy some more NCTY (obviously it would have to be at better price) and I have my next buy point there hopefully in the $15 range. Portfolio snapshot:

Regards,

BG