The Oxen Report: Oil and Market Look Down, We Continue Our Bear Approach

As many of you have probably read, one year ago was the lowest we got to in the stock market. Today is also the anniversary of my stock picking beginnings. Its my one year anniversary. In the past year, I have turned my Buy Pick Portfolio into over $6000 from the beginnings of $3000, which is over 129% in profits. You can read more about that in my post I had over the weekend. Yesterday, we want 1/1ish. Our Short Sale of the Day was a success, pulling in 3%. We short sold Suntech Power in the morning at 15.20 for a 3% gain, selling at 14.76, taking advantage of missed earnings in Yingli Green and an overvalued STP. We were able to get in at 15.20 due to our Morning Levels Alert, which adjusted our entry range upwards and better positioned us. This alert was available to our Oxen Alert members. Our Buy Pick of the Day we held overnight, which was SRS. We bought into SRS at 6.78 and closed yesterday down about 2%. This morning, however, the stock is looking to open just a few cents under. We are looking to get out for 1-3% on that one today.

Today, however, the market is looking to get a wee bit closer to where it was one year ago, as things are looking pretty down for the day. On a lack of economic news and earnings and seven days of rallying, it is time to the market took a breather. How do we play this breather?

Buy Pick of the Day: Direxion Daily Energy Bear 3x ETF (ERY)

Analysis: Over the past month, oil has been in a stellar rally that I do not think anyone could have predicted. My upwards range on oil over the past couple weeks has been $82-$83 per barrel, and I am putting us into an ETF that inverses the oil companies because we hit that high, and the oil market is turning around. In pre-market, the NYMEX has dropped almost 2% on crude this morning, which is a pretty large amount for the oil market. The market for oil companies has yet to catch up, but it will. The combination of oil dropping like a heavy rock in water and the fact that futures for the open are down around 20 points, make energy inverse ETFs look pretty attractive.