Tuesday, September 2, 2008

Just Taking What the Market is Giving

Sometimes you just have to take what the market gives you. Its hard to get excited about entering any substantial positions here, but I'm fiddling with a few smallish positions. The market goes up today, so I'd be expecting a reversal trend either tomorrow or the next day, as we can't seem to hold any kind of trend.

I'd look to buy some Ultrashort Financial (SKF) around $110. It was down in the $108's today but I don't like to jump into anything during the first half hour of trading as it tends to be quite sporadic. If the market rallies again this afternoon, thats something I'd look to pick up for a trade.

Beyond that, oil is the hot topic. With the hurricane not causing too much damage, oil prices are dropping further. The real key here is determining to what extent demand will change in the next few years. The drop in oil prices has mostly been related to that.

Again, I'd look to add small positions of some short-term values. Nothing more beyond that.

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