Happy Monday my fellow investors. A quick recap for you. On Friday, the buy pick of the day was Ultrashort Proshares Financials (SKF). Even with the market being down we were still able to manage to make this trade work, entering the stock at 24.20 at 3:30 PM and getting out at 24.46 at the end of the day for a solid gain of just over 1%. In the morning the stock retraced back to 24.22, but I had set the range ar 24.20 so could not buy into it. If you got in around that low, you could have ridden SKF up for more than 2% into the 24.70s. On the short sale side, we liked BP PLC (BP). We got in at the open at 54.66. The stock trailed down to the 54.40s before moving back up with an oil rally to end the day at 54.75 for a minimal loss. We picked 1/2 winners on Friday and are looking for 2/2 today as we get set for the start of the week. Later today, we will have an updated portfolio report for you so you can see how I have taken $3000 and turned it into close to $5000 in just six months of day trading.
Buy Pick of the Day:
The market is looking definitely very toppy right now as it has hit its highest levels of 2009. With the world markets pulling back on Monday, it may set up the American markets for a similar fate that could transcend into a long term downward trend for the market. The problem, therefore, is most of the things we want to buy are really overweighted and its hard to say whether the market will really sell off or just stay pretty neutral in the red or even rally. All the world markets have trended lower throughout the day, and if profit taking begins in the morning, it may spark a lot of short interest. Oil seems to be dropping like a rock, and it may move back upwards a bit after a 10:00 AM announcement of the CB Leading Indicators. This piece of data measures overall economic health by combining 10 indicators such as building permits, new orders, money supply, average workweek. It is predictable, but it still continues to show the health of the economy.
I want to, therefore, play the oil shorting market with the inverse ETF with Ultrashort Proshares Oil and Gas…
