Are the commodities plays dead. I dont know but what I do know is that many of the hedge funds that are in trouble were in this crowded space. If I am correct on this and they are caught in losses commodities trades the space can definitely go lower. The trick is to find out which are of commodities the failing hedgies are heavily involved in.
Right now the following commodity related stocks look like they are on life support.
JRCC
X
APA
FCX.
I am not playing these as I am just barely trading as the market seems like it is waiting to tip it hands either way and I am waiting. I am a bear longer term but that doesn't mean we can't do higher short term. I think there is still a shot the bulls try for that 1325 area but for now we look weak, so who knows.
Stay small as I think we will soon get in gear and rack up some nice profits.
MARKETJEDI
Wednesday, September 3, 2008
Market
Once again market internals are weak, very weak. I am staying with my plays and shorting the futures from this morning, make sense.
SKF looks like a 1/2 share buy here
SKF looks like a 1/2 share buy here
TRADE CALL: SNDK $15 January Puts
Ticker is SWQ MC.
SNDK is dead money. I think good chance this one sees sub $10 before January. The January $25 puts here looks ok in terms of premium. Don't play heavy but I think excellent risk reward on this one.
We will see soon enough.
MARKETJEDI
SNDK is dead money. I think good chance this one sees sub $10 before January. The January $25 puts here looks ok in terms of premium. Don't play heavy but I think excellent risk reward on this one.
We will see soon enough.
MARKETJEDI
Oil traders
For those who trade Oil. $102.50 is a number to watch for some support. How much bounce we get off that number if any we will see. A breach below will break the back of the Oil bulls
Hedge Funds
The darlings of the financial world in the last few years have been hedge funds. Many though have been going out of business in the past 18 months and I believe more will in the next few years.
This morning The Ospraie Fund a $3.8 billion commodity fund is shutting down. They are down about 38% YTD and LEH owns 20%. LEH seem to own a number of worthless entities lol.
I do believe we are at the beginning of the implosion of the hedgies.
MARKETJEDI
This morning The Ospraie Fund a $3.8 billion commodity fund is shutting down. They are down about 38% YTD and LEH owns 20%. LEH seem to own a number of worthless entities lol.
I do believe we are at the beginning of the implosion of the hedgies.
MARKETJEDI
TRADE CALL: GS Short ($162)
Yes Goldman got downgraded again this morning. I think this stock should see $125 within the year.
Make sure you use wide stops but I think we can see $150 in a rush if we break $162.
Make sure you use wide stops but I think we can see $150 in a rush if we break $162.
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