Commodity stocks are being unraveled here. They are gapping lower, as bids dry up and losers head for the exits.
Stocks like Freeport-McMoRan Copper & Gold Inc. [[FCX]] , United States Steel Corporation [[X]] , Southern Copper Corporation (USA) [[PCU]] , Century Aluminum Company [[CENX]] and all of the oils are dropping in fantastical fashion.
At the same time, banks are up.
This makes no sense and cannot/will not continue.
I must say, it’s very tempting to jump in here, on the material names. However, it’s hard to pin down a good cost basis, when the bottom drops out. Just yesterday, I initiated a position in FCX. Look where that got me.
The market is hardly down. Yet, if you are long commodities, you feel like it’s down 500.
To hedge the commodity debacle, take a look at ethanol plays, like VeraSun Energy Corporation [[VSE]] and Aventine Renewable Energy Holdings, Inc. [[AVR]] . Also, take a closer look at the refiners—like Western Refining, Inc. [[WNR]] , Valero Energy Corporation [[VLO]] and Tesoro Corporation [[TSO]] .
Or, take down an oil down etf, [[DTO]] .
In short, if you are looking to buy the blood, do it in small increments.
For example: if you want to own 1,000 FCX—buy 200 share increments, every 3 points.
I cannot stress this point enough. Dollar cost averaging into stocks is the most important aspect to swing trading or investing, especially in volatile markets. Never deploy all of your capital at once. Instead, stagger your buys over days and weeks, until your target position is reached.
Try to trade without hubris. Trading with your balls will make you a very poor person. Your wife will leave you and your health will go downhill; then you will die.
How’s that sound?
UPDATE: I bought 2,000 FCX @ $79.60. My next buy will be in the $75 range.
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“Try to trade without hubris”
How did you say (write) that with a straight face?
I must say, buying UNG and IEO have been the most fucktarded things I have done in a while. If it wasn’t 50 degrees here today I prob would have sold. However, winter is on it’s way and say hello to my new investments!
Shorted some IAT for shits and giggles…
What’s going on with BHI? The CEO saying something about Gustav having as severe an impact on the oil industry as Katrina, yet NOV continues to sell off. You’d think NOV would benefit.
Hold or sell CHK in this market?
I can handle the craziness. Most of you have a low tolerance for pain.
So, my rules may be different than yours.
Good advice.
Patience will pay off.
im buying calls on NOV, OIH and POT
Im also short these names…scaling out of shorts and taking the proceeds and buying more calls
Does the word “Osprey” conjure up any images?
Just posing the question.
Alpha, a dead bird of prey?
So it’s more fallout from the hedge fund liquidation?
FLY, you think NG will go positive today…i do
Death really shouldn’t be feared.
-DT
POT at 140 ish and AGU @ 72 ish will set up for a bounce.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
So it’s more fallout from the hedge fund liquidation?
No its what happens after spectacular bull market runs…the hedgies are victims of anchoring… history is there to learn from…..
Where’s there’s one hedge fund, there’s another in the same nest.
Speaking of ospreys, I was out kayaking early Sunday morning, and saw two of them fishing for trout.
Beautiful birds. I wish I had a camera with me.
Worthless advice. Man the fuck up. short the entire fucking market using every ounce of your margin and double inverse ETF’s until your balls hurt and you reflexively gag and vomit every tick the market moves against your positions.
In the end, you will be rich and you will thank me. This DCA bullshyte will get you no where fast. Fuck your wife. The bitch is ugly and your kids are worthless. There are models to plow, Ferrari’s to crash and mansions to set ablaze.
Go for the fucking gold. No one remembers the average joe.
Gary:
I suggest an intimate meeting with a bottle of Jack and a shotgun to your face.
I’ll say it for The Fly…..
Gary, FUCK OFF!
I wouldn’t even let you be my Roman galley slave.
why the fuck does the skf chart look like a spitting image of oil?
don’t hate the playa, hate the game Fly.
in defense of crazy-eyed gary: no balls – no babies! Go for it. (except the part about the wife n kids)
Are we having fun yet?
Alpha, you’re not even man enough to comment on this thread. How you even took your nom de plume is completely laughable and beyond me. Go take some pictures of a bird or two. When you get back from kayaking & bird watching with the ladies, the men will let you know how the market fared and what games we’ll be watching later in the night.
Hey Fly!
Its me again.
I would target your next FCX buy at around $70 – take a look at weekly 15-period CCI indicator.
Just a thought.
Mike…
That is excellent advice. I wish I were capable of following it. But, it seems testosterone and visions of trading in the ’93 Escort station wagon have gotten the better of me. I am fully invested.
Fly, do you like FSLR as a bounce swing trade off the 200 dma?
thanks
FLY – Nice call on WNR!
gary,
i hope that when you get home, your mother comes from under the porch, and bites you in the ass.
The spelling of Ospraie alone brought doom to its investors. It’s Osprey, douchebags –
Next time try “Eaglesse”…
has anyone heard from rc? is he ok?.
Chivas, I haven’t seen my mom in years, but I’ll be sure to tell yours tonight what your twisted fantasies are.
PS, short everything on any bounce. We are going through the July lows.
Hey Fucker … watch the mother talk!
Hey Ladies, I was pondering placing a call into CNBC saying it’s time to buy the Financial’s. What cha’ll think? It’s been a while since I felt this sure of the bottom being in.
Gary is seeking capital for “Eaglesse”.
“I cannot stress this point enough. Dollar cost averaging into stocks is the most important aspect to swing trading or investing, especially in volatile markets. Never deploy all of your capital at once. Instead, stagger your buys over days and weeks, until your target position is reached.”
Everyone here, esp. the Fly haters, should print out a nice big version of this quote. Make it at least 24 pt. font. Bold it. Then stick it next to whatever/wherever you trade. Ingrain it in your brain.
VLO says, I pity the foolish oil stocks. Buy me instead!
Does this mean that Senor Fly will no longer buy SKF at more than 1000 share pieces? We must all strive to become more computer like – it is all numbers after all, no?
I suggest an intimate meeting with a bottle of Jack and a shotgun to your face.
_____
Ah, yes! Do it with class. Do it… The “Hemingway.”
_