Trade: SKH, FAST

New longs:  SKH (15.59), FAST (53.55)

No, not SKF.  I’m into healthcare.  Majority of my clients are in the healthcare industry.  Its in the beginning of a bull market.

DryShips Inc. [[drys]]

… short the ship!  DRYS under 50 in a hurry.

Excel Maritime Carriers Ltd [[exm]] , TBS International Limited [[tbsi]] , Diana Shipping Inc. [[dsx]]

All failed rallies.  These are done and are heading deep under the 200ma.  DRYS could not stay above 70 which was our short-entry point.

Just for the record, the Vix hit 30.96 today at the open.  That’s about a 64% in about 1-month.  That’s some major volatility and fear.

I have a hard time getting short when I see leaders holding ground on a day like this.

Apple Inc. [[aapl]]

Google Inc. [[goog]]

[[cme]]

Abercrombie & Fitch Co. [[anf]]

… I would have thought they would be down harder (ANF is green?!), but this just shows today’s red tape has a very strong sector bias.   A good entry to reverse-fade is if GOOG goes green.  If it doesn’t, then hold on to SKF.  I haven’t quite found any good stocks to fade here.

Also, check out Fuel Systems Solutions, Inc. [[FSYS]] … still holding some ground.

Right now I also like the action in medical related stocks… China Medical Technologies, Inc. (ADR) [[cmed]] , Intuitive Surgical, Inc. [[isrg]] , Natus Medical, Inc. [[baby]] , Celgene Corporation [[celg]] .  Of all the sectors to get bullish on, you can’t help but see the leadership developing there.  I’ll post on this later, but just know that the IBD 100 is getting renovated with medical stocks after a few hurricanes tore up all the energy stocks.

He kind of does look Russian, no?  I wonder if his helicopter still has gas?

There isn’t much to write about that you haven’t already read somewhere else.  I know a lot of people are thinking “crash”, which I don’t blame them since this will notch the 3rd dramatic fall this year.  Again, using wave-theory, usually the 3rd wave is the biggest, whether that be a “normal” wave or an “inverse” one.  And with the fix trading at a relatively low 25, when I think we should be trading in the high 30s, we could get to my target area this month.

I’m not really sure how I want to play this, but we have three ways:

1)  Buy the panic for a day-trade… look for the Vix to spike to ridiculous levels.  Wait for the first initial pop, then buy on the second one intraday… there is too much panic by then, and the easy money on the short side is done.  Otherwise, wait for any news of government intervention to help the market gap up.

2)  Short on continued weakness… if the Vix just trends up, then short, or get long SKF, SRS, SDS.  I think this scenario has the highest likelihood, since I think a repeat of March’s Bear-Stearns-Bottom will probably NOT be replicated by LEH’s chapter 11.   There are so many other stocks that are shortable.  In particular, I like the weakness in the shippers (TBSI, DRYS, EXM), .com retailers, fashion and apparel (ANF, TRLG), and exchanges/brokerages like NYX, ICE, NDAQ, CME.

3)  Hedge with SKF… if you are long and feel uncomfortable with the markets future, then you can buy SKF as a hedge.  I still think there are better inverse ETFs that are good to get long like [[FXP]] or emerging markets.

Whatever the play, blood is on the street….. time to make money.