Tuesday, September 2, 2008

They Are Back-----But Did They Trade????

I thought certainly that the traders would be back today and we would see higher volumes. I was wrong. Now according to Jim Cramer, the rally was real this morning and the selloff later was the headfake. Now before my regular readers start calling to find out what hospital I am in if I am listening to Cramer---I fell asleep with the TV on CNBC and woke up with him trying to make it so simple. If you are watching that guy---you must be bored. It is not as simple as he made it sound, but we might get a rally this week. I am interested to see where oil settles. It jumped the last hour of trading today and looks like it might bounce off of $110.

I bought HUBG today and am upside down in the trade. I wasn't paying attention and got it at just about the peak of the day. I like the stock, but I overpaid. At any rate, this is a great company and I held the stock. My SWS call started the day off in the wrong direction, but ended on a great note. I think this stock might go to $25 in the near term. I did get short the SPY when I saw things beginning to cave in. I held that trade overnight as well. I used it as overnight insurance and will assess things again in the morning. EME went up again today, but I am very concerned that the stock may have reversed. It started the day very strong and hit $36.05 and then settled at $34.50. I didn't like the way the stock looked during the day. I will keep a close eye on it and might exit the trade if it breaks below $33.90.

Everyone seems to like the rails, and while I don't disagree, I am not ready to buy yet. I think CSX is a good stock, but it went down hard today. Long story short, I think there is time to pick and choose your spots.

I think you have to take a look at IBM here. I have been wrong on the techs for the last month, but this one looks cheap right here.