Where I Be

I made three trades early this morning:

1) I sold out of CF because it wasn’t responding to The PPT o/s like statistics say it has in the past
2) I bought SKF with 10% of book as a hedge
3) I bought a starter in SCHN. This is my steel play. It has solid fundamentals and a good debt situation despite 8 acquisitions in the past 9 months. It also has a short interest of 8% which will be extra fuel to the fire should the shorts who piled in rush for the exits. Technically, on the weekly it just got the “roll” on the wilder’s and on the daily it’s possibly completing a reverse h&s. Truthfully, above 42 is the go-point for SCHN, but I wanted a piece here.

I’m now 46% long and 10% SKF.

The market is still exceptionally shaky, ready to be thrown off a cliff at a moment’s notice. (specifically the notice of EU chopping their own cocks off over and over again) That said, I don’t think shorts feel very safe here either, since the closer we get to falling off the cliff, the closer we get to a government parachute. (do you like my metaphors?) A political solution or temporary fix to the world’s economic problems will put short sellers into a vice and squeeze their little brains out. Don’t play games and remember to go outside.