Monday, June 15, 2009

More Weakness Ahead?

We're seeing healthy pullback today on around average volume. Few stocks are being spared, but nothing is tanking either. It will be interesting to watch the action in the last hour of the day, as that typically seen strength and heavy volume.

Crude oil is finally pulling back a little, while natural gas is climbing. Interesting shift. Will it continue? A lot of people have been saying it will, or at least for the spread between the two to close. I didn't get into UNG under 14 again like I'd hoped; I was probably a little picky. Ideally (and I've said this before), I'd like to establish a good sized position in UNG with two goals. 1) A core position that I will hold for a good length of time (ideally when gas prices move back to earlier highs), and 2) Trading shares. UNG has been fairly easy to trade between around 13.50 to 15.50 give or take a little. There is some risk in not being in UNG at this point, and that is that we're finally making a solid move higher, but I think that line of thinking is still premature. I'll continue to monitor that situation and report when I do make a move.

Pullbacks are always nice too in that its easier to buy. I hate chasing stocks. I've outlined the stocks in my radar, and will likely make a few purchases if we see even better prices.

I've been positoning for a pullback in stocks for a week or two now. I'm mostly in cash and pleased with that so far. I do feel we have to make some sort of test of those March lows, but it remains to be seen how close we'll actually get (or when that may even happen).

Disclosure: none

1 comment:

AMIT said...

Sometimes stock market is high and sometimes low.

Finance Bookmark