Direction Change or Relief Rally?

I hope that today is the start of a changing of direction---but I am not convinced. You can't make money on hope. I will say that I have not posted because I traveled to Dallas Texas this weekend. Let me tell you that the good folks in Dallas are still out spending money. There might be a slowdown---but there were a lot of people moving around in gasoline burning automobiles and there were long lines at the restaurants. As I have said over and over--this is a recession, but it is not the end of the world as we know it. I think we may retest the lows again, but I believe that we are in the bottoming process.

So who stands to benefit from the current situation? I have to add VLO to the top of my list. Even after an impressive jump today, it still trades at below 17. I can't see them getting hit much harder than they have already been hit---oh and with the price of oil going down most days---the crack spreads are going to increase which will help their margins. Yes, I know the argument is that demand is down, but I will take increasing margins in an improving marketplace any day.

I have mentioned FCX and I really like this one as a buy-and-forget-about-it. It may go down in the short run, but this one is well run and will deliver over time. It appears to have priced in virtual global collapse. I don't think it will stay this low for very long.

I hope we see some follow through tomorrow. Follow through has been tough to find lately and we so desperately need it. I think we get a rally after the election regardless of the winner.

The dollar is strong and that should help with consumer goods prices.

I am doing research fast and furious and will update as I find good ideas!