When the dot com bubble burst, we all paid, in spades.
When the banks crapped out on the treadmill, we all paid, in spades.
As sure as I am sitting here, the disaster unfolding in the commodity markets will come home to roost, in spades mind you, effectively dragging everything lower.
Now, it is my personal belief that oil will not take the elevator straight down. I’m looking for a few good trades, via Hurricanes and other similar natural disasters.
Remember, 90%+ of all successful money managers have HUGE exposure to oil. Everyone took out the financials and plugged in energy. Now, with the bottom falling out, expect to see widespread panic, as funds close and people scramble to get out of underperforming funds.
There is no leadership, unless you call Ambac Financial Group, Inc. [[ABK]] and MBIA Inc. [[MBI]] leaders.
For the day, I averaged down on my [[DIG]] and [[IEO]] positions. However, I sold out of Ultra Petroleum Corp. [[UPL]] and Global Industries, Ltd. [[GLBL]] . Basically, when things get sporty, I like to focus on a few items. UPL and GLBL were just in my way.
Also, I added to my [[SKF]] , [[SRS]] and [[FXP]] positions. It is my belief that the market will get mud stomped in September. However, do not misconstrue my motives. I am not selling because it’s September, per se. I am selling because I believe multiple funds will close down, causing a selling ripple effect across Wall Street.
It’s been too tough. If you are up this year, bravo. You are good.
It is not easy to navigate markets like this. To do so, you need a “calculator brain,” no doubt.
Finally, I bought some Freeport-McMoRan Copper & Gold Inc. [[FCX]] today, only because I promised I would—if it reached the low 80’s again. The sell off in National-Oilwell Varco, Inc. [[NOV]] is mind boggling. Despite all the weakness, military stocks keep shooting higher. There, my favorites are Lockheed Martin Corporation [[LMT]] , General Dynamics Corporation [[GD]] , AeroVironment, Inc. [[AVAV]] and National-Oilwell Varco, Inc. Northrop Grumman Corporation [[NOC]] .
NOTE: My refiner play, Western Refining, Inc. [[WNR]] , held up well—considering.
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