Robert Rodriguez - His view of our economy

It is nice to hear someone who understands the current state of affairs of the government involvement the economy. This video was a great nugget of the truth that CNBC reported, which is rare.

Pequot Capital - Another Hedge Fund bites the Dust

Pequot Capital Management, a large well known hedge fund, will liquidate over the next few months. Sign of the times.

Read the letter to the clients: (Dealbreaker)

SRS

Sell to open JUN19 naked PUTS SAKRM @ $1.25. Opened a full position.

ANR PCX

Alpha Natural Resources ANR, Patriot Coal PCX downgraded by Morgan Stanley today.

$SPX SPY - Stock Market Commentary

The $SPX is now consolidating and heading to test key support levels. The $SPX closed below a steep rising trend line. Steep trend lines typically break hard and fast. This could set up to test the 860 support area, with 840'ish' thereafter.

If I see a close below 880, I will buy some AUG at the money SPY puts.

CLICK CHART TO ENLARGE

Barack Obama - "We are out of money."

The president, interviewed by C-SPAN, tells us that we are out of money. Fast forward to 13:20 and hear what he says about the state of our government finances.

SRS

Closed all of my SRS JUN20 naked puts for a 27% GAIN.

SRS

Closed the other half of my SRS JUN17 naked PUTS for a 59% GAIN in 4 days.

SRS

Closed half of my SRS JUN17 naked PUTS for a 53% GAIN in 4 days.

BankUnited Is Closed by Regulators in Largest U.S. Bank Failure This Year (Bloomberg)

May 21 (Bloomberg) -- BankUnited Financial Corp., the ailing Florida lender, was shut by regulators and its assets were sold to private-equity firms including WL Ross & Co. and Carlyle Group in the largest U.S. bank failure this year.

The group’s purchase was the “least costly” resolution, the Federal Deposit Insurance Corp. said in a statement today.

BankUnited, based in Coral Gables joined 33 banks and at least five credit unions that have gone under since January. Former North Fork Bancorp Chief Executive Officer John Kanas led buyers that also included Blackstone Group LP and Centerbridge Capital Partners LLC.

BankUnited had $8.7 billion of deposits, regulators said. The failure will cost the FDIC $4.9 billion, the regulator said.

BankUnited’s fiscal second-quarter loss probably rose to $443.1 million, or $12.55 a share, from a loss of $65.8 million, or $1.88, a year earlier, the company said in a May 12 regulatory filing. Loans no longer collecting interest rose to 18 percent of total loans from 14 percent in December.

FDIC PRESS RELEASE

Sector Watch - Financials, Energy, Real Estate

The financial ($DJUSFN) and real estate ($DJUSRE) sectors are 'strong' relative to the broad market. The energy sector is holding this market down.

S&P 500 level of 884 is very important. A close below will take us down to 840's. I will stay in my SPY puts for now. I do think we will go lower.

Position yourself for a move lower. By some puts in retail (XRT or RTH), REIT's which we have naked puts on (SRS), or like I said the SPY.

As far as our SRS trade; be patient and wait. If you have a 50% return on any trade, then take the money.

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What is wrong with Jeff Macke of CNBC's Fast Money?

Can anyone figure out what is going on here? Has Jeff Macke gone nuts or is he messing around with Dennis Kneale? Interesting exchange of words.

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