Entered Direxion Financial Bear 3X ETF Shares (FAZ)

We bought Direxion Financial Bear 3X ETF (FAZ) shares today at $19.67. We did a couple of round-trips on Direxion Financial Bull 3X ETF (FAS) shares earlier in the week as we twittered previously – those trades were modestly successful. FAZ is the bear equivalent of FAS – The ETF tracks the daily performance of Russell 1000 Financial Services Index at 3X inverse leverage. This is again another speculative trade and the holding period is expected to be a few days.

Below is our updated portfolio - it is about 35% in the red. Our cash position is at 13%:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Yield as % of Portfolio Value
Altria (MO)	Various	16.69	17.21	4.79	3.14	0.38
Philip Morris International (PM)	1/4/2005	32.19	38.30	8.60	18.97	0.45
Kraft Foods (KFT)	Various	24.03	23.07	4.28	(4.01)	0.23
Pfizer (PFE)	Various	24.37	14.38	6.67	(40.99)	0.30
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	25.28	14.79	6.86	(41.49)	0.30
Advantage Energy Fund (AAV)	11/2/2006	11.22	2.70	1.25	(75.95)	0.17
Central Europe & Russia Fund (CEE)	Various	39.23	16.36	5.31	(58.29)	0.03
Patni Computers (PTI)	8/10/2007	20.85	5.49	2.55	(73.69)	0.08
Itron Inc. (ITRI)	11/07/2007	85.01	49.08	4.55	(45.23)	None
Anthracite (AHR)	11/09/2007	7.97	0.43	0.20	(94.60)	0.00
ClickSoftware (CKSW)	11/09/2007	4.61	2.89	3.69	(19.96)	None
Harvest Energy (HTE)	11/28/2007	21.01	4.09	1.52	(80.54)	0.22
iRobot (IRBT)	12/18/2007	18.65	8.96	3.32	(51.55)	None
LDK Solar (LDK)	01/22/2008	30.49	7.76	2.16	(74.55)	None
Aegon N.V. (AEG)	04/28/2008	15.99	4.97	1.38	(68.91)	0.00
LM Ericsson (ERIC) Call Value	05/05/2008	11.83	7.50	5.56	(36.59)	0.15
TD Ameritrade (AMTD)	05/21/2008	17.68	14.72	5.46	(16.76)	None
Trina Solar (TSL)	Various	24.90	12.19	5.65	(51.05)	None
Costco (COST)	08/01/2008	62.28	48.46	4.49	(22.19)	0.07
Frontline Limited (FRO)	10/06/2008	36.95	19.92	2.77	(46.08)	0.17
DryShips Incorporated (DRYS)	02/09/2009	6.96	5.11	3.32	(26.62)	0.00
Direxion Financial Bear 3X ETF (FAZ)	03/26/2009	19.67	18.64	4.32	(5.23)	0.00
Cash				13.08
Total Portfolio					(35.89)	2.54

• For Altria and Philip Morris International, assumed spin-off ratio of 30.83:69.17. Altria is yet to supply the cost-basis info
• For Ericsson, we wrote April 7.5 covered calls on them at 0.95

Below is a summary of transactions during the year:

Stock	Buy Date	Buy Price	Sell Date	Sell Price	% Gain (Loss)	% Portfolio Return*
DryShips (DRYS)	Various	11.66	01/29/2009	8.96	(23.29)	(1.39)
DryShips Feb 15 Calls (OOCBC)	01/29/2009	0.20	01/16/2009	2.50	922	0.58
Companhia Siderugica Nacional (SID)	Various	11.03	01/29/2009	16.01	44.86	1.73
Taiwan Semi Feb 7.5 Calls (TSMBU)	Expired	NA	01/09/2009	0.90	NA	0.77
Taiwan Semi (TSM)	7/27/2006	8.70	03/03/2009	7.76	NA	(0.78)
Direxion Financial Bull 3X Shares (FAS)	03/16/2009	5.09	03/19/2009	6.53	28.31	1.26
Direxion Financial Bull 3X Shares (FAS)	03/23/2009	5.94	03/23/2009	6.22	4.63	0.19
Direxion Financial Bull 3X Shares (FAS)	03/24/2009	6.45	03/24/2009	7.12	10.30	0.44
Realized Gain/(Loss) YTD	-	-	-	-	-	2.80

• % Gain/Loss Relative to Portfolio Value at Beginning of Year + Deposits
• The table assumes realization of profits associated with selling options only after the option is exercised or expiry.