Intraday Moves Of 500 To 1000 Points Will Become Routine

So get used to it. Although I doubt it, the market could reverse today and close up 400 points, so tight stops are key. Although OIH and SMN gapped, they are giving ample opportunities to get involved. I added to SMN and initited OIH with tight stops.

I'm staying away from the financials for a good long time. I probably won't be long the group for years to come as I have an aversion to being long the government in any aspect.

$CHK is getting bombed another 20%, does Aubrey still have stock for sale? I don't think so.

Nasty Givebacks

Kinda how the financials started

Stay Smart

State Street (STT) was a beat yesterday and WFC beat today and raised the dividend. It was up about 30%. In my last post I said that I wanted to see a close at or very near the high on the financials. It was a good close and it makes me a little more confident we can resume things in the morning. I actually kept a little UYG long overnight. A good number from JPM should instill some more confidence tomorrow. This a two xanax, double shot moment at the bar for the shorts. Right now they are panicked and are praying we don't gap up in the morning. I am not all all convinced this is the bottom but I will trade what I see, and right now I see green for the financials. Keep in mind the last two big rallies we gave ALL back the next day. However, it does feel real this time. I made most of my money short energy right after the inventory number. Bids imploded and I killed them. I was short APA,CHK,OIH and XLE. I covered about 30 minutes later with nice gains. It wasn't until after lunch that I started getting long the financials, mainly UYG. All of these names were on the blog last night and this morning and twittered throughout the day.

Don't forget about GOOG after the close, a good number in a better market could make this one get silly again. Amnesia can be a killer, so don't forget how bad things were yesterday, the day before and the day before that. These rallies will lull you then rip your esophagus out if you get complacent. Right now though, it's all about emotion and sentiment and NOT the charts or the fundamentals and short squeezes take more than one day to get resolved. The key for me tomorrow will be the ability to sustain this move. If the longs don't use this financial rally to unload, which they've done every time in the past, then this rally will have legs.

As far as oil goes, I think we get lower prices for he rest f the week. After that it could be onward again. This move down is because of the thinking that China is slowing. We've heard that before and it always turns around and bites us. I worry more about Israel, Iran and the Straits of Hormuz more than a 1% perceived decline in China's growth rate. Right now though the momo is down and I still like the names that I posted last night and this morning.

The sad and ironic thing about today is that that Bernanke and Paulson and Cox will take the credit and they had NOTHING to do with it. A beautiful testament to how free markets actually fix themselves ON THEIR OWN!!!!!!!!!!!!!!!!!! and they always will. Go America.

Glitch

The last post cut off. Anyway what I wanted to say is I am selling any rallies in financials and buying dips in energy, especially CHK. Also a correction on the morning watchlist, it was DXD not DDM that I meant to post. Later

CHK

CHK has huge possibilities OR it could rollover if the sector decides to continue lower. That sounds like a cop out and very vague but it is what it is. I will give it the benefit of the doubt because it recovered from a minor 50 day ma break on massive upside volume. APA looks very similar on the chart. I am still short term bullish on energy. I traded it today for almost nothing because I was an ass. Any pullbacks may be good entries. Look at what it's done every time it has hit the 50 day moving average.

Wicked Volatile

I covered some financial shorts early before they rallied. I was lucky. I shorted MS pre open and covered for a point and a half within the first half hour. UYG, WB and LEH were covered from yesterday basically at the lows of the day. FDX started the day off with a bad number and a gloomy outlook. This is a company that is quite a tell for how the economy is doing. I caught CHK for a beautiful trade before it decided to roll over with the rest of the sector until it strengthened later in the day. I caught a little name, ABAT, from $5 to 5.50. The chart was amazing until it gave up the ghost in the afternoon. I will be watching this one in the days to come. If it can get through $5.70 with volume it should explode. It' s a China name that makes batteries. I know, the hair is up on your neck from the excitement. Oil went away near the high of the day and the financials tried their best to rally. The only reason I covered the financials was because I caught the gift of a bad open. I still think they go lower. The XLF breached the March low that I have been watching for weeks but quickly recovered. The DOW also broke 12000 for a short period. All in, it's hard to be bullish right here. It really is all about the oil bubble popping, and when it does we will see a rally of enormous strength. The question is when? Stay liquid so you can play when it does.

PS The steel stocks came on strong at the end and I caught AKS for 2 pts. I forgot about that one. I almost took it home but it's not the take home market for longs yet. Keep an eye on it though.

CHK Setup

CHK- You could make an arguement that this is extended but if it can continue and break through $46.90-47 on strong volume I would do the trade. Big short position in nat, gas futures in here.