I couldn’t have scripted a better story heading into tomorrow, and that is another glimmer of hope for the bears as the S&P closed right at the 1000 mark. Following the S&P e-mini futures contract into the close, the last few highs all stopped at 1000. Let them all short the market at the open, only to get crushed at the close. If the market gaps lower at the open, I am looking to buy the S&P into weakness.
I bought into Solar into the close, as these stocks have lagged oil and oil service companies by a day or two over the last few months, but carry a monster beta as I look for continuation in crude. The last big move similar to today’s in the OIH, was followed by an explosive movement in TAN, which tracks the performance of solar stocks. Keep an eye on TSL, CSIQ, LDK and JASO to run tomorrow.
I’ve touched on a few early ideas that worked very well today, energy (NBR, CNX and CNQ + 5-6% respectively) materials (STLD, SCHN, AKS, and GGB + 6-7% respectively) and financials (MS and STT + 3-4% respectively). I like these names to continue higher throughout the week, so don’t book gains just yet.
Continue to look to Copper prices as an indicator of where the market pulls back. Looking at the comparison chart, it ought to let you know at least a day in advance.
As for my longer term outlook, I won’t fight the strength in stocks. Rather, as I mentioned earlier, I’ll be content to make hay while the sun is shining. It’s been tough to tune out the same old dogmatic view of the financial markets, but in order to make money trading, you have to. I’ll continue to ride the momentum until it ends, and hopefully at that point, you’ll have me back for an “S&P 300 Party” in order to help call the bottom.
A big thanks to the Fly, for offering to publish my prose back into the internets, and thank you, the reader, for doing what you do. It was nice to come out of retirement, and the timing was grandiose. Be well.
Option Addict
www.tradingaddicts.com
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Thanks for sharing some of your wisdom with us, OA.
Used to be an avid reader of your old blog (and still appreciate the weekly watchlists)…so here’s hoping you come back one day to the ‘regular’ internets, despite your successful (I’m assuming) venture with TradingAddicts.
DPeezy,
Thanks.
As a side note, I voted for you as a tabbed blogger in the controversial “Alpha Dog Elections” which makes me a fan of yours as well.
Speaking of the old blog, an ugly blow up with my former employer over the blog took a serious turn, which is the main reason I didn’t try to balance the two initially. My blog was a focal point in my non compete, which is why I flipped to an entirely different site.
Now that my non compete ends this month, I might try and make another run at the ‘regular internets’ as I miss them terribly.
Keep it real,
OA
Great stuff OA, Love that CSIQ.
I bid thee goodnight.
Thanks for the post.
knuck, knuck, knuck…
Thanks for the great posts today!