Sure, loads of negatives but…

We’ve again reached another extreme moment of bearishness. Do you think the energy economy will disappear by next quarter?

There are only 2 good things that will come out of the Gulf spill. The first are current prices of oil service stocks. The second is that maybe someone is trying to figure out a way to get off the dirty teat of oil. Good luck with that.

Markets are attempting to hammer out the lower portion of our trading range. Everyone and their mothers are waiting for SPX 950. Not gonna happen at this time so don’t hold your breadth (lol).

Yesterday was a seminal day. Expect to do lot’s of work around 10k. But things got a little lopsided…

BTW–OII couild be up 10% today after dropping 27% in 3 days…

Buying 1/3 position in OII under 41. Will buy more at 36 if I can.

This is obviously down because of the deep-water drilling moratorium, but also through “guilt by association” because of BP. Every time you look at the leak, you see “OCEANEERING” in the upper left-hand corner…

They will suffer some earnings hits, but they are the answer, not the problem…Down from $68 since the leak, now near $41.

ADDENDUM: paid 40.45

10 year Treasury Chart-Art…

THOR WOULD BE PROUD

When examining the broad breadth of stocks, it is apparent that many are hammering out the lower portion of their new trading ranges. It will take time for the overall market to confidently find support where it should find buyers, but I have little doubt that the world will not end with this correction. This will not be the “big one” as many newly bearish folks are claiming. Nor do I believe we are on our way to new highs or another “V” shaped bottom. Though anything is possible in a normally functioning market, imagine that “anything plus” is possible in this market.

Folks, now that our friends in the Orient are back on board (for now), it is “game on”. This is the real deal. When we come back from our long holiday weekend, prices will be higher.

Semi’s and energy–especially semi capital equipment and energy services–will give you the most bang for your buck.

It sure looks like we’ve hammered out the bottom of our trading range.

Gosh. I would have loved a dull and boring market that sucks the life out of all volatility , but that is not meant to be. The VIX will be below 28 by tomorrow and that is a very key level seperating fear from some sense of normalcy.

There will be some more “slap-chop” action, but the buyers are real and the volume is good. Enjoy!