{+++} Bubbles were popping everywhere today. Oil, silver, gold, you name it. The theory that trees don’t strait to the sky was really reinforced today. Somewhere in the oil pits people made hundreds of millions on the short side, people in that same pit lost a fortune on the long side. Same goes for silver and gold and that’s what makes a market.
I sold the balance of TZA today which was a decent two day trade and sold another third of FAZ which did well as the financials declined. There is 1/3 FAZ remaining. I also added WFC as a short late in the day.
Retail and consumer discretionary did well as cheaper oil implies more purchases by the consumer. The U.S. Peso finally got a bump today and that really accelerated the move down in commodities. They will be good buys at some point, but not yet, these unwinds and “risk off” trades can last a week or more sometimes. Until it settles, expect some dramatic moves up and down in that space.
What is staring to look attractive to me is the agricultural/fertilizer space. If you look at daily charts of the big three: POT, MOS & AGU all held their respective 200 day moving averages. CF is not there yet, but we may enter soon. Let’s see.
It has been a very sloppy week and frankly I will be glad to get it behind us. Nothing new tonight. The big kahuna that is the jobs number is tomorrow.
The dollar finally got a pop, we’ll see if it can last.