What a relief we've had the past few sessions. Markets took off with a vengeance as oversold conditions setup the perfect scenario to initiate short squeezes to give buyers waiting the incentive to buy.
I am looking for the markets to continue now on a temporary upswing. The financial sector might have gone up too much too fast, but the thing is when there's doubt in the air it probably means it has more room to go up.
I bought a new position in Nucor (NUE). I've been waiting on the sidelines for a very long time and now it looks like a nice chance to get in since it is right on the 200DMA now. It even broke down a little bit but looks like all the weak hands are being flushed out. I have been wrong a lot before about picking bottoms but that's why I don't even try to. I'm just going to buy a position now and continue building on it. This is at least a $70 dollar stock imo. If there are some quick rips up due to short covering then I'll consider just trading it.
If oil continues to fall out of flavor we could see a nice sustained move up. It broke below $129 so let's see if we can get a meaningful downmove.
- DL
Long ATI, RIO, NUE, JCG, SOLF, GOOG
8 comments:
Good to see xman again.
I heard Soros is shorting oil. And everywhere I've read, says oil will fall (maybe after olympics). I don't know what to make of oil.
Let see how far this rally can last. dow to 12k?
X what the hell is going on man? I'm getting slammedover here.
How are things on your side?
welcome back xman!
ug oil and ags, market fashion show in full effect.
Instead of trying to guess bottoms, has anyone used the William Oneil technique of buying only after confirmation a stock has gone thru a proper buy point? I've set buys at 3% of what I thought was a good buypoint (i.e. past a resistance level) ...however, I have gotten bought in for volatile stocks when I didn't want to (MOS). But better than chasing a downward spiral. Pros/Cons?
Monkies are you long MOS, is this what you're saying?
I skated to an upday today in the portfolio. POT gave me a hell of a ride and had traders on the google board going crazy after the massive drop. I held on though. Also held on to MON and it closed green,long FTI and it closed green and beat earnings afterhours. As well as my CNX.
This market is teaching me some HARD lesson man and im learning how to catapult and jump through hoops without getting burned. So far this mon I havent made a dime but I havent lost a penny either so I consider this a winning month in this environment.
Not trading like xman (not even close)...but I got bought into MOS because it's volatile as heck and met my stop limit. It's been downhill from that little perk.
I'm no expert in ags or whatever, but they're all getting crushed, along with drillers, nat gas, etc. I'm in da hole too.
This is a fun blog to read...this guy trying to start his own mutual fund...but the MOS analysis is chalk full of good sarcasm.
http://www.fundmymutualfund.com/2008/07/mosaic-mos-with-blowout-earnings.html
Added some SOLF. Anyone else adding, or does everyone think this is a fake rally. I still think the GDP and unemployment numbers this week will settle the market down a bit.
Ag and oil, we may need some patience with.
let us hope we get another xman sighting.
Not again Xman :)
Please come back
M.
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