Well as I write this the DOW is down almost 300 points on the day and will most likely break a 2008 low. So much for the lows of March that gave the market a sense that there was light at the end of the proverbial tunnel. Well, congress is in session talking about to whom to blame for the rise in the price of oil, the evil speculators or the evil Saudis who are hording oil so that they can afford their fleet of private jets. Meanwhile we have Citi Group (ticker C) and most of the Financial Sector at $17.85 or breaking lows and still not rated a buy by anyone who carries any weight. While this is going on we have Forbes attacking thestreet.com on the merit of their writers and contributors in a half effort to get more readership. Everyone is bickering and no one is getting along, it is a sign of the financial times and it breaks my little heart.
Well, what in the hell are we, as investors, suppose to do now?
Turn off the television and put down the paper (unless it's Investors Business Daily), and stop watching the news. Surrender to the fact that oil is goingto rise and the market is going to fall. So, put on your favorite album as loud as you can and try and wash all this bad news out of your head, relax, and think. My only request is that no one rocks out to any Pink Floyd, it is bad for the market..just kidding.
Amid all this negativity we can find our next trade. If we look closely we can find strength and capitalize on it in this case we are going with Energy Alternatives. We know this is not a ground breaking idea, but the risk/reward factor is right for us.
Yes ladies and gents Oil is so last year, Coal is the new Black. And as far we are concerned we want to take a good hard look at Coal ETF's for near term gains and on the broader stroke Energy Alternative ETFs. Think wind, nuclear, and I hate to say it even solar. Find a good ETF with good international exposure. Next your going to buy as much as you can. Next write close the money calls so you will get called out for a quick profit. While your getting called out and making money off the spread the market should be down hovering around 11,200 and ready for and around of buying on dips. But the name of this game is cash reserve, keep that cash close to your heart and get ready to go shopping on that upcoming Independence Day stock market fireside sale.
Good trading to all,
cheers!
Tony
skip to main |
skip to sidebar
Hey all, this is my investing blog originaly created for my clients and now available to all of you in cyber space. So the topics are mostly on stock picking and maybe a little on life. So read through my posts and hopefully you can get a better understanding of the markets and while doing so the revenue created by your views will go to a local shelter for battered women. So spread the word. Cheers.
Posts
Bio
- Tony
- TEXAS, United States
- I'm a stock broker turned Army Ranger, turned student of History. who loves draft beer and the idea of investing and making money off solid ideas and forward thinking.
1 comment:
Tony,
I understand why you may be interested in coal (steel input, power, etc), but wouldn't you say Nat Gas is the way to go? It is MUCH cleaner than coal, pretty much as plentiful as coal and easier to switch to from oil (quite a few cars/trucks already being converted to run off of gas). Also, considering the Cap & Trade bill in congress the Gas players will be the winners vs coal.
Disclosure: I sold my ACI on Monday and am overweight CHK in equity and October calls.
Post a Comment