ENER update

I hope some of you were brave to buy those ENER $45 calls I mentioned this morning. I got then @$3.60 and they closed at $7.00, almost a 100% winner in a day. Lets see what tomorrow brings but if you in the trade you got to manage it yourself. I might be out $7.50-$8 level tomorrow morning if it gaps up.

ENER $45 calls-

Traded as low as $3 at open. I got in at $3.60, now trading at $6.10

New Week

Firstly remember that this week is options expiration, which as you all know I love just love.
Talk over the weekend was of the Euro Dollar getting some selling as investors weren't as confident in the EB decision making policies to interest rates.
I personally dont know how this will impact the markets as I really don't see people rallying into the US Dollar under current climate. Maybe they switch over to the Pound or some other european currency.

My two plays for this week are X and ENER.
Good chance I take there long at the open with options. The %170 X call options @ $5 looks decent enough and ENER $45 call options @$3.50 have little premium in them.

Will update after market opens..

Weekend

I think next week we will have a bullish week. I know today is friday night but I think we can push up into that 200 ma on the indexes here.
One stock I am goign to gun for next week is X (United Steel). This one looks like it want $200. Google also looks like they might want to pin this one to $600 area next week.
I will say it here, the next push up will be the last time to sell your longs. The next push up will bring all the bulls out and then we will burn hard, very hard.

Have a great weekend

Pre Market

Oil is ticking above $125.50 as I write and world markets are getting a cold slap in the face this morning. AIG should set the stage for a pullback in the financials. Citibank may shed $400 billion in assets.They have a $2 trillion balance sheet. What a monster company. I think they will let some air out today as there isn't a positive catalyst in site, and oil prices are really starting to piss the market off. With most earnings out of the way and commodities soaring it may be a good time to step aside or increase short exposure. Keep an eye on yesterdays lows to see if they are violated. I think they will crack. Critical juncture in the market as the rebound could be seriously tested here.

Is it wrong to be betting on the US Dollar now.

I just got through read an article relating to the US dollar, Euro interest rates and Gold. It was a very interesting read but I can't copy and paste it here as it is a copy right article. The basis of it was explaining the ECB decision not to lower interest rates as they see significant inflation since last autumn. The writer proclaims that the ECB is reluctant to follow the U.S. Federal Reserve in cutting borrowing costs as soaring food and energy prices drive inflation above 3 percent in the 15-nation euro region. The International Monetary Fund estimates economic expansion will weaken to 1.4 percent this year from 2.6 percent in 2007 after the U.S. housing slump pushed up the cost of credit worldwide.
Why is this important? Well the writer of the article is stating his claim that the Euro will go as high as $2 against the US dollar and this will consequently lead gold prices to $1650, if that happens. I am keeping a close eye on this as this I believe will have drastic consequences to the US economy.

Market lifeless

Market is so dead today I wouldn't be surprised if we match monday's volume as the lowest volume day of the year.