Failed Moves

The general markets are showing us failed moves up and down. Traders with a higher risk should consider initiating long positions for the short term. Positions I'm eye balling:

DIG
SPWR
IWM
UNG
FCX
GOOG

I expect DIG to pull back to the $86 ish area. I wanted in at $78 and never got it. Pull the trigger at $86 if you can get it either today or tomorrow.

Very neutral market... my view on energy

Looks like a very neutral market...big down day yesterday, big rally underway today. Personally I think the pullback in the energy and commodity sectors is a great opportunity to buy. Financials and Homebuilders still have a long road to recovery AND the dollar will continue its decline. Long term, you should be buying energy and commodity issues. Short term its anyone's guess as to what the market is doing. Watch DIG, I like it in the high $70s if we can get it. UNG is reversing today...it might be setting up for a nice swing long position. I have LVS puts going into earnings tomorrow. If the stock stays strong through tomorrow ahead of the call tomorrow night, I will need to buy some stock as a hedge

Score 2 in a row for the bulls!!!! Good job guys

Today should end on a positive note...45minutes to go as I right. I was in and out of several issues today including USO, FCX, DUG, FXP, GS, and EBAY. 4 for profits and 2 for losses. Bought some August GOOG calls. And bought some UNG for the long haul. I see no reason to hold trades overnight unless you are holding short oil or long financials (since u would be playing with the 'houses money' at this point).

I think this is a major opportunity to get long some commodities on this pullback. I'm going to wait until Monday or Tuesday of next week to revisit these trades. FCX under $98! lol!

Moving the last 3 days

I've been moving across town (moving up that is) so I've been absent from trading. A very nice rally spurred today by Wells Fargo. The question is, "will it continue?". I suspect the financials will give us a mixed bag this quarter and selling pressure will probably remain as folks pull out $$ to pay off debt and their houses. The $$ they are pulling is primarily going to come from commodities and this will give us a very nice entry point. I'm not sure when that point will be but I'm confident it will be before the election. 1250-1260 on the S&P is the spot to watch. If we make it through that then 1310-1330 may come fast.

I see no reason to keep trades overnight yet unless you are going to swing a commodity stock like FCX, MON, or POT. But I'd just let them come down.

Cash is king

People buying U.S. equities are mere speculators at this point. What is the reason to buy? The only answer I find is because equities are cheaper than they have been (bottom picking). If this is the bottom and you are buying, then congrats to you! I see no catalysts to drive stocks higher. Institutions won't be buying until next year...some may enter this fall depending on how much damage Obama will do to the markets.

I'm keeping trades intraday as usual primarily on the short side. I really like natural gas for the long term.

One day rally?

Today we will see if U.S. equities can put it together for two days in a row. I'm skeptical. After all, not much has changed other than cheaper equities. I actually think it is a good time to buy commodities on the dip (NOTHING HAS CHANGED). Consider the dip:

MON
POT
FCX
XME
GLD
DE
ATI
KOL
XTO
UNG
USO

Also, watch FXI/FXP. FXI is touching its upper trend line (intermediate term). FXP might be worth a trade going into tomorrow if equities can't hold.

Guessing bottoms is impossible-- don't do it

Volatility is picking up and therefore we are nearing a near term bottom. Nevertheless, this is a very difficult market. I think traders will stick with what works for the time being = sell everything except oil, ag, and pm trades.
I'm Long
DDM
FXP
SRS
USO