Wednesday, August 6, 2008

Nice Sideways Action

If you are a bull you had to be fairly please with today's action. Many of the recent wood chipper names, coal, steel, oil and agriculture stocks caught nice over sold bounces. I waited for the oil number and didn't interpret it that bullishly for the commodity, as a matter of fact , some of the names rallied, so I shorted OIH,XLE, and RIG as they appeared to be turning lower after the move up and I caught them for quick trades. I will post their charts later as they turned totally bullish and if I stayed close to the names, I could have went long and made a lot of money, but I didn't. I did however, watch the ag names for a bounce (POT,MOS) as they looked like they wanted to go higher and squeeze the shorts. Which they did. Many of the readers want to learn more about the "holy grail" set up, so I posted them here. Notice how how they gently cruised into the 20 day line on the 5 minute chart. Actually my shorts that I mentioned before looked even better as longs after I covered. I will post them later so you can get an even better idea as to how these patterns can play out. As you know I think the agr. plays go lower but they were very over sold and I mentioned on my morning post that all these names, including coal and steel could get a bounce.

P.S. AIG caught ALLLLL the brilliant analysts leaning the wrong way. I waited around to short overnight but they reported late and I had to split, it's one to watch at the open. I'll be back in a bit. Hope you took the hill today.


About Me

My photo
I am a former hedge fund manager, broker and capital markets dude who now trades for his own account. I love what I do. I will try to post some stocks and an occasional chart that looks attractive for entry.I will also try to point out the idiocy of conventional wisdom and the lack of value added by the mainstream financial media. These postings should not be viewed as recommendations.