You thought today’s tape was benign, with a slightly bullish bias for the banks?
Look again.
The commodity/infrastructure plays were manhandled, yet again.
Look at the losses in Joy Global Inc. [[JOYG]] , Bucyrus International, Inc. [[BUCY]] , Foster Wheeler Ltd. [[FWLT]] , Fluor Corporation (NEW) [[FLR]] , Caterpillar Inc. [[CAT]] , Terex Corporation [[TEX]] , McDermott International [[MDR]] , amongst others. And how about the dry bulk shippers? Boy, they were great, right.
Look again.
Shares of DryShips Inc. [[DRYS]] , TBS International Limited [[TBSI]] and Genco Shipping & Trading Limited Genco Shipping & Trading Limited [[GNK]] have been oven stuffed and eaten.
The ongoing theme is destruction. One sector at a time—everything is burning. Albeit, from time to time, you will get an oasis sector, like ag, oils and banks; but for the most part this market has been the greatest destroyer of wealth EVER.
I have never seen anything like it, yet the vix is still in the low 20’s and ‘tards on the tube keep talking like everything is honkey dory.
Hello, anyone home?
Aside from the great commodity crash, today is D-Day for tech. Ooh, everyone said money would roll out of oil into Research In Motion Limited (USA) [[RIMM]] , Apple Inc. [[AAPL]] and Intel Corporation [[INTC]] .
How’s that working for you?
The semi’s, led by Lam Research Corporation [[LRCX]] , Intel Corporation Cypress Semiconductor Corporation [[CY]] , Marvell Technology Group Ltd. [[MRVL]] , [[WRF]] and Altera Corporation [[ALTR]] , are dead and buried too. Don’t even get me started on the solars.
Basically, pick a strong sector and short it. You like how healthcare or biotech is trading?
Short them.
You know they will be taken to the woodshed, eventually, by some “unforeseen event.”
With my money, I am prepared to buy more [[SKF]] at $105. And, I will continue to buy the dips in [[DIG]] , [[IEO]] , Freeport-McMoRan Copper & Gold Inc. [[FCX]] , Southern Copper Corporation (USA) [[PCU]] and National-Oilwell Varco, Inc. [[NOV]] .
Also, I still like the refiners, particularly Western Refining, Inc. [[WNR]] , for a trade. Don’t even get me started on Legg Mason, Inc. [[LM]] . Bill Miller is making a comeback. Hurry up, get long.
Get back to me in two months and tell me how that worked for you.
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