Short QQQQ

Being short QQQQ is causing me to sweat! The Fed just bailed out the longs and socked it to the shorts by lowering interest rates a half a point in an effort to bail out the subprime mortgage problem. The dollar got cheaper relative to other currencies and so products look cheaper in, say, Canada and Europe. The Canadians buy more stuff, earnings in the cheaper dollars go up (real earnings may actually be going down), and then investors buy more stock in anticipation of the higher earnings.

So, QQQQ looks like a long play. Many of the companies of the QQQQ have the international exposure where they benefit from cheaper dollar. However, I suspect this is temporary. I'm short because it's gone up so high for so long that I expect it to regress to the mean at some point. Of course, I'd sure wish it would hurry up.

Long Mphase Technology (XDSL.OB)

Mphase claims to be working on a nanobattery that will have a long shelf life. They have numerous other ventures but none seem to be panning out. The stock is around .07 cents and a long shot.

The possible uses of the long shelf life batteries are incredible and that is the reason that I've purchased the stock. The one that I think is the most valuable would be the use of the battery in emergency, police, and military equipment. Think of all the equipment in storage that needs batteries. It sits there for years waiting for the hurrican, etc. Most batteries would loose power during this stage. If Mphase can produce a solution, it seems to me they could make an incredible amount of money.

Another reason that I am long this stock is because of the CEO and CFO have been making regular purchases of the stock. And recently, they have increased the amount and frequency of their purchases.