Sunday, August 10, 2008

The Week Ahead

I sat and listened as the TALKING HEADS in the mainstream media called the bottom this weekend. As much as I would like to believe that we are at the bottom, I just can't. Lehman is still looking to sell assets and oil (while it has rapidly declined) is still over $110 per barrel. I don't think that we have had a real reading of the consumer as the last couple of months have most certainly been distorted by the goverment stimulus checks.

And there is that I-word worry. Inflation is almost a given based on the printing presses at the Fed running at full-speed over the past few months. Now while a lot of talking heads will disagree with me, I do believe that over the short run we have seen much wealth evaporate---BEAR STEARNS SHARELHOLDERS come to mind. I do believe that will slow inflation, but only for a short period of time.

I will admit that when oil prices first started to pull back, I didn't think that it would cause a major rotation out of the drillers and service companies. I WAS WRONG. I am still watching some of the better companies in the space. Transocean (RIG) is one that I really have my eye on. Now I have learned not to fight the market, but RIG will make good money with oil at much lower prices than we have right now. We will see more volatility in this one and being early is equivalent to being wrong, so I won't get over anxious---but I am looking for a decent entry point on this one.

We will release at least 2 shows this week. Trader/Coach Denise Shull of is first up this week. She talks about the great assest of DISCIPLINE. I really enjoyed my visit with Denise and this topic is something that every trader should hear. We will have trader Carley Garner on the show later in the week. Carley has great insight and is a great resource!!!


Dollar.Discipline said...

Discipline is an interesting concept nowadays. Few people understand it much less practice it.

This irrational (emotional) thought process (or lack thereof), gives us so much of the volatility we have in today's markets.

I'm anxious to hear the interview!