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The PPT

Liking the Market...

Written by Zachary A. Musso On 1/27/2009 10:41:00 PM
...For now.  I mean, any minute this thing we are still calling a market could turn on me, and in the context of the FAZ buy @ $58 (which I thought would have been a dream snag), I got ripped up after hours.  Ridiculous, for the entire financial sector is up after hours in absolutely idiotic amounts.  Whoever is trying to "dip buy" stocks like GS is in for a rude awakening tomorrow with WFC earnings (write-downs on top of write-downs on top of write-downs...  Thanks to Wachovia and poor management!), so if you're one of those people, prepare to cover those pathetic positions!  The Rate Decision will also have an impact on the market in the short run, but in the long run it means nothing...  Yet.  Crude Inventories may have a factor in a pullback in the Energy Sector tomorrow due to a possible surplus of oil barrels in the United States.  I am 50/50, hoping for it to happen and pullback the sector so I can get into some Energy Sector positions before they rip higher Thursday and Friday, and hoping for it to not happen due to my position in BHI.  Either way, it's somewhat of a win-win because I'll be profitting in the end.

For my next order of business, I'll move into my Sector Outlines I promised to give you last evening.  The two sectors I have chosen are Energy (with emphasis on Oil & Gas stocks) and Basic Materials (with emphasis on Gold stocks).  My laugh of the day, however, goes to Cramer, who is telling people to buy AEM, which is just freakin' hilarious.  Although I do appreciate Basic Material stocks, you've got to be kidding me; @ $52 that is a terribly overbought stock and will be a difficult one to make money out of it in the short-term.  Continuing on with the Sector Outlines, I have come to the conclusion that in the coming weeks these two sectors are due to outperform the market again like they have for the past week or so.  I have chosen the following stocks to outline with chartology in these sectors:
  1. Basic Materials:  FCX, NEM, GG
  2. Energy:  SLB, HAL, BHI, OXY, ACI, PCX
And finally, the chartology that goes with these tickers:

FCX  30-Day

NEM  30-Day

GG  30-Day

SLB  30-Day

HAL  30-Day

BHI  30-Day

OXY  30-Day

ACI  30-Day

PCX  60-Day

Other ways to trade these sectors are through the UYM (Basic Materials), the DXO (Oil and Gas), and ERX (Energy):

UYM  30-Day

DXO  30-Day

ERX  30-Day

And there you have it for the MJTT Sector Outline.

MJTT's Daily T.L.:  FCX, ACI, BHI, GG, UYM, FAZ, SRS, SBUX (based on earnings performance), WFC, GS, ARLP, SDS & SSO (pick up one based on definitive market direction indicators), OXY, SII, CVX, NEM, SLB, HAL, ERX

Position Update:
  • BHI @ $32.00 w/ Stop @ $30.00
  • FAZ @ $58.00  w/ Stop still to be determined.
  • FCX @ $25.94  w/ Stop @ $22.00
Seems like a lot, but every ticker up there is going to be involved in the grand scheme of the market for tomorrow and the rest of the week in some way, shape, or form.  I am PRAYING for a day off of educational services (aka school) tomorrow due to weather conditions (hopefully my wish is granted)!!  Ending the post off right, I'll bless you with some MJTT Words of Wisdom:

Don't Forget to Hedge Your Bets While in Consolidation Periods!

Keep Tradin'


ZM
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MJTT Disclaimer

I am not, by any means, a financial analyst. All posts and tickers mentioned in them are my opinions and my opinions only. If you buy and sell ANY tickers because of my recommendation, you are trading at your own risk.

Zachary A. Musso - MJTT Owner/Author

Trader Bio

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Fully Discretionary, Speculative Futures Trader - Technical Analysis Junkie - Bentley University Class of 2014.

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