Entered Direxion Financial Bear 3X ETF Shares (FAZ)

We bought Direxion Financial Bear 3X ETF (FAZ) shares today at $10.47. We did a few round-trips on FAS/FAZ prior to this trade as we twittered previously – those trades were modestly negative. FAZ dropped more than 40% today as the financials rallied following Wells Fargo’s surprising rosy earnings pre-announcement. The expected holding period will again be a few days as this is a speculative trade.

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	16.31	4.47	(2.25)	0.38
Philip Morris International (PM)	1/4/2005	32.19	32.71	8.35	17.14	0.45
Kraft Foods (KFT)	Various	24.03	22.35	4.09	(7.01)	0.23
Pfizer (PFE)	Various	24.37	13.55	6.19	(44.39)	0.30
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	25.28	16.75	7.66	(33.73)	0.30
Advantage Energy Fund (AAV)	11/2/2006	11.22	2.72	1.24	(75.77)	0.17
Central Europe & Russia Fund (CEE)	Various	39.23	17.46	5.59	(55.49)	0.03
Patni Computers (PTI)	8/10/2007	20.85	6.60	3.02	(68.37)	0.08
Itron Inc. (ITRI)	11/07/2007	85.01	47.29	4.32	(44.44)	None
Anthracite (AHR)	11/09/2007	7.97	0.50	0.23	(93.73)	0.00
ClickSoftware (CKSW)	11/09/2007	4.61	4.25	3.89	(7.83)	None
Harvest Energy (HTE)	11/28/2007	21.01	4.21	1.54	(79.97)	0.22
iRobot (IRBT)	12/18/2007	18.65	8.40	3.07	(54.57)	None
LDK Solar (LDK)	01/22/2008	30.49	8.08	2.22	(73.50)	None
Aegon N.V. (AEG)	04/28/2008	15.99	4.50	1.23	(71.85)	0.00
LM Ericsson (ERIC) Call Value	05/05/2008	11.83	7.50	5.49	(36.59)	0.15
TD Ameritrade (AMTD)	05/21/2008	17.68	15.86	5.80	(10.32)	None
Trina Solar (TSL)	Various	24.90	12.79	5.85	(48.64)	None
Costco (COST)	08/01/2008	62.28	46.90	4.29	(24.69)	0.07
Frontline Limited (FRO)	10/06/2008	36.95	18.07	2.48	(51.09)	0.17
DryShips Incorporated (DRYS)	02/09/2009	6.96	4.75	3.04	(31.79)	0.00
Direxion Financial Bear 3X ETF (FAZ)	04/09/2009	10.47	10.49	4.32	0.16	0.00
Cash				13.09
Total Portfolio					(34.92)	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
Direxion Financial Bear 3X Shares (FAZ)	03/26/2009	19.67	03/27/2009	19.91	1.22	0.05
Direxion Financial Bull 3X Shares (FAS)	03/30/2009	5.49	03/31/2009	5.20	(5.34)	(0.23)
Realized Gain/(Loss) YTD	-	-	-	-	-	2.62

• % 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.