Tuesday, August 5, 2008

Stocks that are due for a bounce

  1. XTO. Now at 43.8. High was 73 about a month ago, I added since 48, then 45 , then 44, and then 43. Yes, I added too early again. The 48 can be avoided since it's a huge up day on XTO, and I should wait.
  2. AGU. Now at 79. High was 113. I added since 85. It shot up to 93, then sold off hard.
  3. MOS. Now at 110. High was 163. I added since 120s. it shot up to 132, then sold off hard. This again reminds me that i should always take a quick profit.
  4. POT. Now at 173. High was 241. I added a small one at 200.
  5. KOL. Now at 42. High was 60. I added at 44 and 41 today.
  6. CHK. Now at 43, high was 74. Added since 45.
  7. UNG. Now at 40. High was 64. Added at 40.

I think overall, commodities related stocks and ETFs are due for a bounce. Even GDX, MOO are attractive now. I am still feel good about adding these.

Market can break out either way, if I have to pick, I think it's to the upside, and I think general market may be joined by commodities related stocks in this leg up. If that's the case, my holdings of UYG and XTO will go the same direction for the near future. I expect this to be a short covering rally, in both energy and financials.

Energy, fertilizers, coal are oversold short term. Financials are oversold long term and just about to break out.

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