OBAMA

Since Obama was elected, the market is down 2000 points. The Stimulus money--what where and why has yet to be answered.
Tax payers are pissed. Tax payers need money.
Increasing the Capital Gains tax is still on the table. Taxing more on trades is still on the table.
Baby Boomers are now beginning retirement--they are selling like crazy.
Anyone who has bought since 1998 is now underwater.

This all results in long term holders selling massive amounts of positions in the open market and who can blame them? We are going to see some serious new lows in the market and it is coming quicker than most imagined. While we may get a short term bounce that is overdue, we are for sure heading south in a big way.

Don't blame me, I voted for McCain.
At least we can look forward to a new President in 4 years.

Oil

Markets look horrid. But today's inflation report should send shorts covering in oil. We have a bullish reversal (short term that is). Pull up your chart in USO, DXO, or UCO. UCO is best.

Everyone is expecting new lows in the indices.

And guess what that means?

go long. Pretty tough to short here.

No Mans Land Continues

Despite the huge 4% selloff in the markets yesterday after stimulus passage, we still remain
in a tough trading environment.

The sentiment out there is tilted bearish but a lot of analysts are calling for a dramatic rally as well.
New lows coming soon?
Breakout higher coming soon?

Its a tough call and I'm trading long scalps intraday right now.
What I'm looking at for scalps and swings:

AMR
LUV
BRKR
FRO
EXPE
USO
NRG
BGU
KO
XOM

thats all for now

No mans land

We remain in no mans land acrossed the indexes. Difficult to short, difficult to long.

XLF turned weak today and I think it is headed for at least a retest of lows.

What do I like from the long side even though?

UNG
UCO, DXO, USO
ENER
VMI (with caution) I sold out but the strength today makes me think it will run at that gap near
$46. Use a $40.98 stop.

February

Pessimism is high.

Financials have remained in a short term uptrend. $8.90 on the XLF is the line in the sand.

I like the long trade this week.