In times of AIG

Where there is nothing left but wait till AIG comes with 75 billion bucks, we should be thinking in holding cash, and foresee new chances to get our portfolio running in a very very volatile market. By saying so, I willing put some thoughts on the table as nothing but bad news are coming from every single place, market, or country. What to play? a question that still should take us to books and do what we hate to do: wait. Take your positions and hold´em until it breaks your stops, that´s the only way you can stay cautious and at the same time can have a bite of the of a turning market, a market where there is no direction or trend any longer as everything is on the floor or going ahead to it. Despite this you can call some longs and some shorts that make worth your time.
longs: Barrick Gold Corp, General Electric, Tesoro, Pacific Ethanol, Office Depot and Hecla Mining.
shorts: Deltic Timber, Northern Trust, Covance, Walter Industries, Flowserve, Capitol Federal Financial, Valmont

keep an eye on: Amgen and Wallmart

Inminent Short plays

Illumina, flowserve, walter industries, watson wyatt, fti consulting, itron inc, sunpower. All of then trading at prices with wonderfull downside potential

Curve your enthusiasm!

As yesterday, today you can find pessimistic headlines talking once again about housing problems: let´s face it, the end is not even close. You should probably thank me if I come with some " trading-bulls eye-tip". Ok here you go some of the stocks I´ve been insisting on are by now in the money for those who took short positions on this big movers:
Flowserve

Walter industries

Unit corp

Valmont industries

Priceline.com

All this stocks are high price/high volatility stocks where a 10% movement results in a dramatic change in taken positions, and as any Fibonacci will tell you almost all of them are far away from its 50% barrier, so, there is a much road down the hill to go. Nothing Like King Kong taking some time to watch Big Sam Struggling.

Fannie and Freddie - Mamma Fed is Here, don´t worry!

Capter I. Fannie and Freddie, let´s talk no more about them
Right now, as mixed as we can see market going, dilemma will be what stocks to pick considering leverage and time frame. If you can stand still right there and take the heat from house slump, the sell off will bring some clarity to those with some cash at hand. So, no mater how good the 3G I phone is, no company should feel save from a cascade of stops triggering event, as the market sentiment goes from good to bad in just few seconds. Taking this "nobody is safe anymore" slogan our point of view is to search out of the money options on tech, cover you ass selling cash position and buying bargain level stocks. Summer season already bringing pressure on oil prices higher, dollar down, interest rates with no power to control inflation, the only choice will be to hold downgraded under priced stocks, sell oil and steal related companies and buy some leverage and opportunity with tech assets, After all what else can we do, but wait and trade ground safely? no one know what´s gonna happen next - and we are stating to feel like this city surrounded by water.

Chapter II. Sell Flowserve (FLS) retesting highs, buy Google option (down today good timing), buy Alon cash.