That’s when the market said “enough pain” for the commodities. If you read my “five horseman” post earlier you know those were the names I was short since the open. I only posted the MEE chart because it is identical to the other four names, POT, MOS, APA and OIH. That’s when oil caught a turn up and the groups caught bounces all around the same time. I wasn’t long one stock today and I’m glad I stayed where I was, as the market gave back, and some tech names rolled over. Interesting that if you look at the charts of SPX, DJI, and NAZZ, they rolled over around this time too. It shows us how fragile we are, and how even the slightest rally in crude can upset the apple cart. At least that’s my interpretation.
It was a very good day as the song seems to remain the same as far as selling the commodity sector. POT and MOS traded big volume and I think POT traded almost 50% more than Friday. It really does seem like they are hitting the exits on these names with a pretty good vengeance. The bulls have the punch bowel here, and it is still their party to screw up. I’m still in my own little world shorting short commodities. I discovered the ultra short etf for the basic materials today. The symbol is SMN. All I can say is-where have you been all my life? I never took the time to check this one out but I actually got long a little and made a half. It was late when I found it, but it is definitely another weapon. I have to find the ultra long as these guys should catch a pretty strong bounce soon. Shoot me a comment if you have the 411.