Financials And Oil

They took me by surprise today but I was able to jump on the train for a couple of nice trades. When FNM puked up some bad news and the market started to act teflon it was time to take a nibble. I caught USB and HCBK near the lows for a couple of nice trades. As you know I think the XLF is do for a rest but the opportunity presented itself. By the way the only banks I trade these days is USB and HCBK. Clearly two of the strongest and most conservative banks you can buy so my fear of a blindside is greatly reduced. By the way, when the financials do get some giddy up on a sustained basis, UBS looks beautiful over $35 on a breakout with volume. I'll chart that one soon. In the meantime I've been making money in the middle.

Oil at $122, I guess we'll be $125 in a matter of nanoseconds, although Goldman thinks $150-200 over the next six to twelve months. They were very right the last time. So much for the strong dollar play.

CHNR tried to get cute and run but it ran into a Chinese Wall, pun intended. It still looks good and it's one to keep a close eye on.

By the way these rebate checks are a joke.Thats about three fill ups each for a two SUV family over a period of a month. Ridiculous.

CHNR

CHNR- I posted this one Sunday night looking for a breakout at $23.50. Yesterday the stock broke out and traded as high as $25.27. It ended up closing the day at 24.61. Hopefully we will see a continuation. Next target 26,50 then 29. The sector is cooperating so let's see what this one can do.

Not Much Action

I caught some trades in the morning with CHNR long and a little Citibank short but had difficulty trading EJ. That stock always starts strong and then gives back. I have it on my radar because one day I will reign victorious.It really does look like it wants to go, maybe with a better market.The financials were a bit weak as I thought and I am watching the next move out of that group. Oil and commodities just expoloded and it goes to show you what is hated one moment, is loved the next. PCU and FCX were beautiful, but they gapped up and I didn't feel comfortable with any of the entries that they gave me. I'll check in later.

Morning Look

Copper is hitting all time highs which is good for PCU and FCX in pre market. I think we are do for a giveback in the market this week and will be looking at more shorts than longs. YHOO is getting crushed as expected and MSFT is up about a buck. The financials could come in a bit this week and it is a light week for economic data. I will be watching oil for any signs of a breakdown. A couple names I will be watching today:

EJ,BOOM(possible bounce candidate) CHNR(over 23.50 on volume)SKF(if financials come in)PCU(on pullbacks)

Some Charts To Have On Radar

Here are some charts that I will be watching this week. There is a brief comment on each one. Please click on the chart to enlarge

CHNR

With the Chinese market showing signs of life, some old favorites come back into play. This could run if it breaks through $23.50 on good volume

Update on CHNR,NOC,CHL

Wednesday night I put out three stocks. Two of the three exploded higher today in a lousy market. CHNR I have had out since around $22 but my Wednesday update called for a breakout through $26. Today it was a nickel shy of tagging $29 on triple the average volume. This one can go when it gets legs. Watch for a follow through Monday or a possible pullback buy. I still like it to the low to mid $30's.

I also mentioned NOC and for those who left at the close you will be happy to know they landed a $40 billion dollar contract from the Air Force after the close. The stock is showing up $4 in the after market. As a pair trade I don't have a big problem being short BA and long NOC.

CHL ,the third name, gave a little up but I still like the name with a little better market.

Near Term Over Bought -Or Are We?

Ambac to the rescue again after S&P reaffirmed their AAA rating. If they are triple A then I am quadruple A. What a joke, it seems like these rating agencies will do anything to prevent what they perceive as a disaster if the ratings get cut. Their credibility is in the crapper anyway,where were they a year ago when we really needed them? Oh, I forget, getting paid by the very guys they insure. No conflict of interest there, ya think?
Anyway, as I said yesterday, everybody is still leaning short so we get these vicious moves. I wouldn't want to be too long in here because we have had a lovely jump from Fridays lows. I think Ambac was the reason for both rallies and I think the market is out of ammo for a further catalyst higher for now. The SPX tagged a new 8 day high but NDX lagged and hasn't confirmed the S&P, so hopefully it can jump in the pool soon.
CHNR which I mentioned this morning acted very well and I expect more upside there. Hope you had a great day.

Futures a Little Lower

Still crosscurrents and divergences here as we start the week. We also have economic data and Ben Bernanke gets a microphone again. Needless to say I will be light on my toes as usual. I am posting a chart of CHNR which continues to look intersting. I will have it on my radar this week for a move higher if the market can cooperate

China Natural Resources-CHNR

CHNR- this stock has always intrigued me,back in early October it had a run fron $16-49 in two days. Yesterday it broke a four month declining tops pattern and closed right at it with increasing volume. My target would be in the high 20's low 30's if it can continue over the next few days