Okay now to the next subject OIL. Oil has been in what everybody is calling it a con-tango. A lot of people are mad that the USO had been declining while the $WTIC has been stabilizing and actually closed ok this past week. If you are more interested in reading more on that matter you can look at the article posted below. From my point of view now though, if I am long oil I will be playing it with the USL which I'm sure everybody else is going to now also. So look at that ETF to play oil and watch for the reversal which should be coming some time soon. There was allot of volume that came in on it the past couple of days at a bottom, which could be a sign that a bottom has been set and people are now accumulating. Not that much to say on oil, but that its tricky and I got burned from it before so I will wait for the confirmation besides trying to catch the falling knife.
Next, I am going to talk about a couple of places I am seeing strength in. I like the health care sector, solar sector( getting bids lately), tech, dry bulk shippers gaining some momentum, commodities, emerging markets, and hospitals. These sectors look like they could run up from the passage of the stimulus bill this week. So to list it out I am going to separate the sectors and how I plan on playing it. Being that there are allot of plays I will not be able to play all of them of course and I'm sure you won't be able to either. What you do want to do though, is look at the market environment, industry, and sector etc.... before you enter the trade. Manage your risk right and do your own DD before you enter the trade. Don't just enter the trade based on my judgement because that can switch if something was to happen that would kill the trade. Also remember we are in a traders environment so when I say long I'm referring to the near term and for a quick trade, which could be a day trade or possible swing trade depending on your style So here we go!!!!
I still like the OCR play going into this month so look at previous post below for how I would like to play that. Also USD for semis are still looking good. Also take notice on what Jon Najarian was saying on fast money about the shorts on the restaurants. So I ran a scan on the restuarant stocks that had short interest and some other fundamentals to it. I came up with the PFCB like Jon Najarian said, CMG 55x calls at $3.60, BJRI, and DRI. Watch all these names for people may start covering in these names also. Matter of fact it already started, but trust me there is more room to go especially if we get a rally which i see real soon( even if short lived ).
Energy Plays
- ENER- Long stock or Mar 30x calls
- WFR- Long stock or Mar 15x calls
- PCX- Long stock or Mar 7.50x calls
- ERX- Long stock or Mar 40x calls
- UCO- Long stock or Mar 7.5 calls
- JRCC- Long stock or Mar 17.5 calls
- EP- Long stock or Mar 10x calls ( On break above $9.37 )
- RIG- Long stock or Mar 65x calls( on break above $62) EARNINGS 02/17/09
Emerging Markets
- EWZ- Long stock or Mar 39x calls
- EWT- Long stock
- EWC- Long stock
- EDC- 3x Long emerging markets ( has a mix of stocks so check the holdings for yourself)
Dry bulk shippers
( I like this group alot because NAT looks to be setting up nice and has a nice gap fill )
- NAT- Long stock or Mar 30x calls
- NM- Long stock or Mar 5x calls
- ABX over $40
- MPWR over $14.31
- AMGN over $59
- UTI over $12.45 or good volume
- MRVL over $9.45
- ADCT- over $3.75
- ANO- over $.40 on good volume
- COCO- over $21.73
- MDRX- over previous high
- ANN- moving already I think you buy now with tight stops
China stocks of interst
- TSM- march 10x calls or long stock
- CHL
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