2009: Not one down day? HA.

I am just going to let my shorts from yesterday (TZA @ 42 and SKF @ 101.5 avg.) run moving up my stops on SKF up to around my original but of 103 and TZA around the 44 level. I want to give them a chance to get going but I want to make sure I lock in profits as well so watch the volume patterns and let that be your guide.

On the long end, I will be watching the names from list we have built. Like I said two days ago I thought oil would struggle to get through $50 and this should offer a good opportunity for many of those names to consolidate. Oil started consolidating yesterday and continues today. I think we need to remain patient here and watch for oil and other commodity prices to build new ranges. Lots of big gains still out there to protect and some of these could really tank especially the small caps that are way up such as XTXI. I will continue to work on the list and develop more actionable ranges as they pull back.

UPDATE: 9:30 am Oil reserves have increased drastically more than analyst expectations. This makes me think Oil will retest $40 and maybe even $35. Obviously oil isn't the primary factor in the pricing of many of these commodity stocks. But the correlation has been extremely high lately and I will be very patient before jumping into these overextended ones unless your time frames are shorter than a hour or two.

10:00 am Moving up my stops on half of both positions to just below day lows. Both look pretty close to breaking out intra-day and I will be looking to unload half into that strength.

Update 2:15 I'm booking TZA at 47.5 and locking in SKF at $110. Volume is a bit light and there is support on the S&P at 900. I will consider a reload if 900 breaks.

JAX