Market

Not much goign on today. Although a decent morning for me shorting Citibank and the S&P 500, the thing is market has no news to push it higher and the volume is weak.

WFMI short is still workable here

OIL

I hope I am wrong on these fib extension numbers but the new projection is $146.50. At that level though if my fib calculations are correct I would expect a test of the $150 level.

Follow and make money or lose- choice is YOURS

OK folks- Since the inception of the blog I have been on a roll. Some of my readers have been raking up huge profits on guidance given here and that's my aim. This year I am working on starting the first real time fund where those invested can watch the fund performance on a daily basis in no secrecy.
This will be the first and I intend on implementing the fund very soon.
Anyways back to the markets. I have a couple of winners as usual but I must tell you there are going to be alot of fake outs happening in the next few weeks so be prepared and stick the the overhaul plan.
Financials are dead here!!!! Buy only after you have won the lottery and want to lose major funds otherwise stay short. Based on this I am going to TRADE CALL : MER short. I know I already have SOV, FNM and Citibank short and the SKF (long)but I think MER will be a good candidate for a short play here to test the $40 mark and if breached I think $36 is very possible before summer's end.
My other TRADE CALL: WFMI short. Whole food is great but the business model will suffer severely in this economic climate. I am looking for this stock to be in teenage land before Year end.

Worst week for market in three months

This week was the worst week for the markets in three months. OK we got it correct last weekend calling for a move down this week and to be cautious:) After this week some bad charts are coming up and I see more selling in some of the weaker names. Today if you noticed, the financials got killed. Brokers and banks traded horribly and most ended trading at the lows of the day.
Next week should focus us on where they want to push us in the summer. I dont believe the volume will be super low this summer as most money managers and mutual funds are down for the year and will will be looking to at least get even before it is too late in the year.
What I would really love is a bounce next week and a push higher than this last push to get short. Look at GS touch $200 and lost is so fast. MER the same as so the rest of the financials.
Rumors are circulating that Bank of America numbers wont be good this quarter and that has the stock trading almost at its 52 week low. You all already know my stands on the financials: only the strong will survive as I see many of them being sold or going bankrupt. Anyone who believes Bear Sterns will be the only casuality of the mortgage market think again. I am now making my claim that a home builder will go under or be taken over after the terrible housing numbers reported this morning.
For the folks who dont want to buy ultrashort shares or be short, hey good luck but you better sell into the rallies as that's what the big money is doing.
I have got some crazy ideas for the next two weeks which I think will yield huge profits as usual, but we will see soon enough. Tuesday morning I will be posting a play which I think will be a MONSTER play.

Have a great weekend.

GOLD

I understand alot of my readers are interested in the commodity. I am presently doing some reading about Gold and from what I see in my analysis leads me to be bullish on it. I also think the US Dollar will goto .52 against the EURO which should ramp Gold higher.
I am still doing my due diligence and will write more on it .


Have a safe weekend

GS

Not ready to go full short here because I think we will get a bounce soon and I rather take it short there. Just a heads up GS is dead money here. I would not be surprised if Goldman goes to 130.

Next week

Will be very interested what we do next week. Depending on how it goes today and monday in the electronic futures I will have a plan for next week. Stay tuned for a big play I have setting up. I would play it today but the volume is extremely low because of the 3 day weekend.

Citibank going to $17. Mark it down!!


ONLY WINNERS PERIOD!!!!!!!!!!.