Posted by lae2 on December 04, 2008 at 08:02:06:
The futures are flat. FCX is suffering some nibbles from the vultures and the sharks are circling. AUY is upgraded. AMSC provides favorable guidance.
What to do? Alternative energy has quietly stiffened lately. This AM's AMSC news may fire up the wind play - PWR, FLR, WGOV. ASTI finished the extended PM trade with 40% gains on thin film news. AMAT is suffering a bullish shark attack this AM. Bullish sharks ought to be stalking alternative energy. The slightest increase in crude and solar/wind could blast off.
For reasons other than the usual, early market activity suggests that bearish sharks ought to be circling the financials.
Vultures ought to take a base position in FCX. I would have done so yesterday at 17.25. Unfortunately, I was in a house call and had to sell AN, AZO, and PWR, all profitable, to raise cash to make the call and then stockpile dry powder for today's attack. Meanwhile, I missed a buck in FCX. Early AM activity indicates that the FCX dead cat may levitate further today. Vultures should also take a base position in CHK.
For me; window dressing today. I am circling SHLD. AUY is buy-stopped to add this position. ASTI is buy stopped. I entered a base position in MRVL yesterday. I expect to lose on paper for awhile with MRVL.
As always, if you don't have dry powder; the futures are down. Finish the day with dry powder for tomorrow's attack.