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Thursday, January 22, 2009

Explosive Wednesday, local bottom?

I'm going to skip my normal news coverage and spin today, mainly since its 12:40 am.
Wednesday's action may be a local bottom, but I would be surprised if Thursday didn't bring some sort of a pullback.

The big buzz from what I can tell is that Obama is giving indicators to end the "cone of silence" that has ruled the Bush administration. The idea is to open up government to the people. Time will tell how true this is. If it is true, it should help tremendously with confidence and the market should soar for a few week/months as Obama changes signal new direction.

There is still unbelievable amount of bad news to be had. but at this point, the market is trading on emotion and trying to look forward. We get it, currently we are all doomed. Now lets trade for next month!

One particular piece of bad news/opinions, is that England may actually end up defaulting on debt. Basically bankrupt! Read more from Mish here. Not over night of course, but looking bad for the Brits "across the pond".

I started looking at a new service called "http://technicalindicatorindex.com". I have only looked at my first report today (hence why I am up so late), and the service looks outstanding. They have a free 30 day trial. I highly recommend it. Once again a shout out to Happy John for the idea. I'll share a little information, they indicate up through mid feb (not in a straight line). Sign up & read.

Buying USO at 28.50 was a good entry this past few days. (ERROR FIXED, thanks Swan) I'll repeat myself until people listen, but purchasing GDX "on the cheap" and USO (oil) are good plays as the printing machines rev up for another 2 trillion in spending. A little late to the party, but well worth watching is TLT/TBT. I have been playing TLT puts for 8+ months, done well. TBT has made some recent high moves.

Basically, GDX still remains my favorite long-term play, when it was 27 great day to buy back in. GDX has held up strong through all of this. If I had put all my cash there, the last 2 weeks would have been a breeze.

Good luck, and remember to look at my disclaimer concerning financial "advice"

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