March 23 Book Update

Sold more FAS last week.  I also keep adding to FTR which is my 10% yield cash storage.  The latest 7×4 long Russell 2000 Short S&P trade is in the money and but the R2k doesn’t seem to be going up as much as I had hoped on positive market days.  Baidu continues to be on fire (because I sold most of mine) and shows no sign of cooling off.  I can’t believe this thing was $100 one year ago and is now $600.  However, aside from this name, I am actually not very keen on Chinese stocks right now.  I see too many storm clouds on the horizon: real estate market overheating, inflation, labor shortage, problems with the RMB/a possible trade war, and rumblings within the business community (not just the whole Google thing) that the government is starting to hinder private business (Tencent complaining about SMS filtering is one example).  All these things might not be a big deal, but, the do make me think twice about paying 30x earnings just because China has 8% GDP growth.  As such, I won’t be adding to my China positions anytime soon.

My gross allocations:

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