2:15 PM

That's when the market said "enough pain" for the commodities. If you read my "five horseman" post earlier you know those were the names I was short since the open. I only posted the MEE chart because it is identical to the other four names, POT, MOS, APA and OIH. That's when oil caught a turn up and the groups caught bounces all around the same time. I wasn't long one stock today and I'm glad I stayed where I was, as the market gave back, and some tech names rolled over. Interesting that if you look at the charts of SPX, DJI, and NAZZ, they rolled over around this time too. It shows us how fragile we are, and how even the slightest rally in crude can upset the apple cart. At least that's my interpretation.

It was a very good day as the song seems to remain the same as far as selling the commodity sector. POT and MOS traded big volume and I think POT traded almost 50% more than Friday. It really does seem like they are hitting the exits on these names with a pretty good vengeance. The bulls have the punch bowel here, and it is still their party to screw up. I'm still in my own little world shorting short commodities. I discovered the ultra short etf for the basic materials today. The symbol is SMN. All I can say is-where have you been all my life? I never took the time to check this one out but I actually got long a little and made a half. It was late when I found it, but it is definitely another weapon. I have to find the ultra long as these guys should catch a pretty strong bounce soon. Shoot me a comment if you have the 411.

Updates and Shorts

Victory

The greenback exploded this week and that was the catalyst for the implosion in commodities. This mornings blog was pretty right on with regard to how to play the move. I was short all the names on that list as well as long the UAUA which gave some good opportunities to get long. I've been trading "around " the agriculture stocks, both long and short this week but I'm glad I am still short AGA, which is the double short ag, etf which I have had since Monday.

I really missed the long side move in technology this week as I was caught up in the commodity sector. I will be looking for opportunities over the weekend in that space. This commodity money has to go somewhere and I think that group will be home sweet home for a while. The financials are way over bought and I will be looking for shorts there for next week.

Charts that lightly breached support today were APA and MEE. Absent a recovery rally, these two look destined for the graveyard as well as many others that I will post this weekend. I posted their charts last night, check them out. Also, I posted a bunch of charts last night stating that if we are to start a new bull run, those stocks on the list had to fail. Well,they all failed pretty well today and I hope you were able to take advantage.

Right now, the theme is STRONG DOLLAR AND SELL COMMODITIES. Don't be crazy short though, wait for set ups, they will have a snap back rally, and you won't want to get caught.

I am grabbing my honey and a beer and going out to dinner. Check you later.

Have A Great Weekend

First off, thanks to you guys that promptly e-mailed me back about the steel etf that I asked about on twitter. I was jammed up and couldn't do the due dilly, but thought it was going to crack and wanted to get short. The symbol is SLX. I borrowed some of that, as well as some NUE and X. I went back in the water after getting snake bit yesterday and it paid off in spades. Look what they did to XME today, especially at the close. I caught some great shorts in MEE, JRCC and ACI too. The daily high/lows on these were pretty big and offered shots to make $ short. The GM and Chrysler news killed the steels today. The market hung in and it had every chance to cave, but it didn't. Interesting.

I was watching my twitters today and I think it is a great example of market volatility in an odd sort of way. Something can look awesome at the open and then cave. Sometimes within a very short period of time. This is why I usually lay in the weeds for at least the first 20 minutes of trading. This is a market that is still trying to desperately find its way, and set down some true leadership. Again, the financials were impressive, and if you put a gun to my head I would have to join the "they bottomed" camp. They need to go lower first for my money though. I don't think we are going to see the lows for them again, if we do, the market is going to 8000 anyway. Have a great weekend and I will of course be popping my head in now and again.

Watch Coal Today

Cleveland Cliffs is making a $10 billion offer for ANR. The deal is valued at around $126. Nice trade. The group may catch a sympathy move today so watch MEE and JRCC and the others. Oil is up and futures are down.

Can The Bulls Jack It This Afternoon?

Well, oil is off $5 again and that has been what the bulls have cited as the major hurdle to higher prices. The bulls failed miserably yesterday. Will they try and rally em later? It looks like they want to, but it looked that way yesterday before the fizzle.Stay tuned. I traded MEE short at $72 this morning and covered at $69. I have reloaded at $72.20 with a tight stop. I'm placing a bet that they will take them down again later. I still don't trust the financials and I am ready to reload short if conditions are right.

The beach is also an option.

MEE

I TOOK THIS SHORT AT $72