So Bear Stearns traded at $5 when the bid was $2 and today it tags $13.85 on a $10 bid. Some folks made a fortune long over the weekend and God bless them,too much angst for me. The banks did better than the brokers today and I think the whole group needs a rest in here. I traded some banks today like USB and C, they were strong in the morning but became more difficult to trade as the day progressed. I traded CIT all morning and was lucky enough to be long when it popped in the afternoon. I have no explanation for it ,but it looked like a massive short squeeze or a takeover bid was coming. It ended up giving back some off the move in the last hour. I’ll post a chart later, crazy stock.
The commodity sector looks very heavy to me here with the exception of the grains,soybeans and wheats. The MOO etf did very well and MON,POT,AG had stellar days. Gold didn’t impress anyone,neither did oil. Maybe they need more time. The head of OPEC over the weekend said oil should trade between $80 and $110 in 2008 so it should be volatile, as that is a healthy spread to trade. I’m still holding half of my XME, USO short and re-entered PCU today on the spike at $104. I took that trade home and am placing a bet that it goes a lot lower over the next few weeeks. PCU looked real heavy this afternoon. Copper closed down slightly.
My strategy going forward is a cautious one ,as I think we are close to being over bought.
The market should continue to do well as long as commodities stay under pressure and the dollar strenthens. TLT actually moved lower today,finally-see past post. Catch you later.
Hypocracy of the Day-the former President of Countrywide(cfc) is now starting a fund that buys bad mortgages? Great country America.