TheBoodist (61.62)

Very Interesting Indeed

July 10, 2008 – Comments (0) | RELATED TICKERS: ALJ , AFAM , LNDC

I have begun watching the markets again. I cleaned up my CAPS picks and added some new shorts, hoping to improve my score.  I didn't have any money to trade in the last year, or a clue.  But now I find trading with even miniscule amounts of money can be fun.  I have a big hunch that things are about to take off in one direction or another.  The insane BUBBLE in the price of OIL is ready to POP, and that will help stock prices A LOT.  I just read in the NY Times that the Chinese had been stockpiling oil for the Olympics, and that perhaps after they are over, we will see the price of oil go down.  I found that very interesting.

At the same time, things seem to be worsening rapidly.  The mortgage crisis is bringing banks down. I think its just amazing what's happening to Fannie Mae and Freddie Mac today (down 13% and 25% - in one day!) Technically, I think if current support levels break, it will be months of falling prices and lows not seen since 2003.

I will be looking for regional banks to short - I wouldn't want to be long any kind of financial stocks right now. Meanwhile, I'm watching the refining stocks (ALJ, HOC, MRO, WNR, etc.) get to amazingly low levels - I can't imagine not making money off them when the bottom is finally in.

Two stocks that look really good right now - AFAM and LNDC.  Buy them!  I also think NTRI has been beaten down to a good value level.