{+++}It’s been a difficult market to navigate, and there have been many surprises ( rate hike) and sovereign worries to deal with. The latter comes and goes, and after the initial fear reaction things have calmed down, maybe it’s behind us but I seriously doubt it. I’m not saying that Europe is Bear Stearns or Lehman, but I rember the fits and starts of that drama like it was yesterday. Bad news, then rationalization, more bad news, more rationalization, then boom-the bottom falls out.
I said a couple of weeks ago that some of these country etf’s will be shorts after they get their relief rallies, as a result, I have added the Spain etf as a short, it is my least favorite country next to Russia and Portugal but they all suck right now. It is a name that I will hold for a bit, countries aren’t as tradeable as individual stocks, so if your looking for a quicky, you can play it, but I’m going to hang around for a while, just like Russia, unless of course oil goes to a $100. My personal stops are higher than the ones on the P&L for both Russia and Spain. Here is an interesting article by George Soros on Europe and the Euro that I just stumbled upon in the FT.
Oil service stocks should play tomorrow, because of the SLB bid for SII this weekend, so expect a gap up tomorrow, I traded OIH Friday for a slight loss-feeling stupid now. Keep your eye on WFT as it is breaking through resistance and could be the next one to go.
Tech, materials, financials and oil have all been acting well, merger activity should help the oil sector, The question is for how long and will it push the market in general higher for more than a day?
I have added some longs and shorts and adjusted a stop or two.
I added General Growth Properties as a long. I mentioned in last week’s video that I was long at 11.80, I added more so my average now is about 12.50. If there is a deal for this stock it could be at least another 40% higher.