Its a been a nice week for the markets. It has not been as stupendous of a week for The Oxen Report. We had an exceptional June, but July has been a bit tougher. We are still grinding away. Yesterday, we opened a Midterm Trade in 
Alcoa Inc. (AA), which is supposed to report earnings on Monday evening to start off the Q2 2010 earnings season. I am invovled at 10.54, and we are looking for 3-5% to close out before earnings or hold through earnings. The stock is trading up 10.72 in pre-market, so we are getting closer. We also lost out on a short sale in JA Solar (JASO) we had opened on Wednesday. We got stopped out for a 5% loss yesterday morning.
We are looking to right the ship with two new day positions today…
Buy Pick of the Day: Ultrashort Proshares Financial (SKF)
Analysis: So, we have had a great rally over the past three days before earnings. This morning, however, it is looking like that rally will not be able to be sustained…at least to start the day. Futures were down about 25 points at 8:15 AM. By 8:35 AM, Dow futures had scooted down to 35 points. There really is a lack of any intriguing news to help us sustain a rally, and it appears traders are looking to take their profits off the table before the uncertainty of Q2 earnings season.
In these times, we want to position ourselves in some inverse ETFs that appear to be poised for gains. Yet, we do not want to just pick an inverse ETF at will because it will follow the market. Rather, we want to have the same analytical support for this ETF like we do any buy we take on in our portfolio. The financial sector got hit late yesterday and today with some poor news that consumer credit fell again in May despite very low interest rates. Translation is that no one is taking on loans…bad for banks.
Consumer credit fell by $9.15 billion in May of 2010. Analysts were expecting a drop but only around $2 billion. The significant drop off shows that once again Americans are not taking on a big ticket purchases and trying to reduce credit to stay afloat in these tough times. The above graph shows the significant dropoff in credit. Its a question of whether banks are unwilling to give out…
