Thursday, September 18, 2008

Relief Rally or CAPITULATION

Have we found a bottom? About the only guarantee that you can find in this market is volatility. I am not really excited about being long over the weekend. I will tell you that I think the bull rally in energy is back. I asked Peter Schiff about the oil services sector and he said he thought that I would be fine in that sector. I can't believe that FLR is still below $60 after this rally. This stock should be closer to $80 in my opinion. I can tell you that there is still alot of oil and gas leasing activity in our area. I have seen no sign of a slowdown even in the face of the recently declining prices. I think this complex is going to continue to keep making money hand over fist----unless Obama gets elected and hits them with one of his windfall profits taxes.

The one huge winner this rally day was the REIT area. I mentioned WRI several posts ago and they moved up about 25% today. I was shocked at that move. I am thinking about gambling on GS at some point, but right now I think I'd rather head to the nearest casino.

Shame on Cox of the SEC for his reactionary action. He should keep his hands off now. Short sellers provide liquidity and we need to leave them alone. The real problem started with Elliot Spitzer--friend buddy pal of Jim Cramer---and more.