Breaking News: DOW Busts through 11,700

I bought 7,500 shares of Sirius Satellite Radio Inc. [[SIRI]] .

I know the company is lame, but the stock is sitting right at the lows. A break below the lows will be my stop / exit. Rumors are also circulating that the company may get a bid from Yahoo! Inc. [[YHOO]] . So i decided to throw 10K on it.

Normally rumors are not enough to get me to enter a trade, however SIRI presents an easy exit strategy.

Let’s see what happens.

Proceed with caution! We are near some major resistance. It might be best to see if we can break that level before buying, but then again if you’re looking at Research In Motion Limited (USA) [[RIMM]], just pull the trigger.

[[SKF]] might not be a bad buy here. Easy exit strategy– if the market breaks 11,700, take your loss.

Fly said it a few times, but I will say it again. This market follows the price of oil, period.

At the moment the DOW is up nearly 200 points, just yesterday it looked like we were headed back to the lows. Alpha said it best this morning when he said, “Mr. Market is busy at work this morning, confounding, confusing and embarrassing even the most skilled traders and investors.”

If you are trying to time this market, like I was a few weeks ago, you’re head will be chopped off.

If you’re a trader it’s best to close out your positions by the end of the day– there’s no telling what tomorrow brings. If you plan on holding positions, it’s important to stay hedged– to remain sane.

Follow the price of oil [[USO]] , it will lead the way.

Note: There goes Research In Motion Limited (USA) [[RIMM]]

My Focus today will be in Research In Motion Limited (USA) [[RIMM]] .

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Note: With oil down big, I will focus on select names like Buffalo Wild Wings [[BWLD]]. I love it over $35.50.

Note II: I will also watch to see if the refiners pick up speed. I will go with Alpha’s favorite, Valero Energy Corporation [[VLO]].

1. 2x Inverse Financial [[SKF]]
2. Chesapeake Energy Corporation [[CHK]]
3. Research In Motion Limited (USA) [[RIMM]]
4. Celgene Corporation [[CELG]]

Instead of trying to overthink this market, I will focus on four stocks and trade around them. SKF was bought this morning, I loaded up on CHK at this level, I will hold off on buying any more RIMM until I see further strength, and CELG will be bought on dips– always.

I will still scan for breakouts/breakdowns, but my focus will be on these four names.