7.44 - Keeping faith in DUG, financial earnings are dragging down S&P500.
7.45 - EURO is either going to bounce or head towards 1.30.
Today's rally is just a warm up to some good and bad things to come in the coming days.
Take note of the news on OPEC on Friday, in the mean time commodities are either going to rally or move sideways for a few more days.
I could see some buying opportunities and some potential short opportunities.
In particular I don't like to buy commodities, I think commodities are overbought for now...perhaps it could still rally a bit more before going sideways or rolling over. I would classify commodities as possible short opportunities SOON, I will post some names on the blog if I see that the timing is right.
In the meantime, I have been looking at ignored and beaten down names....there are some gems out there. I will post on the blog once I see some confirmation tomorrow.
In the meantime, I am hopeful that the VIX will subside further for us to get into the "options market" again.
The EURO has broken down and is now below 1.33, but OPEC seems to be the main driver for this commodity rally. Be careful not to be sucked into buying too big positions, or else you will be part of any capitulation assuming that we have not hit the bottom.
Strategy: I am still holding on to my small position of DUG as an insurance, no point selling when it cost money to do so. If my calculations are correct, DUG should hit a peak of 40 tomorrow before it reverses again. If not I might get rid of my position.
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