Market Outlook

Futures seem to be flat right now, which is good but then again, it can change quickly. I thinned most of my positions yesterday but still have a lot of chips on the table. Still have monster positions in shippers, F, GIGM, and more. I will probably cut out of my FAZ today but if you choose to keep it, not a bad move. In my view, something like SRS or FAZ should not represent more than 5% of your portfolio (as a hedge). QID is a better hedge but frankly, I don't want to short this market.

Oil is a must watch today. The inventory report will be out at 10A and the data will be important because summer is coming; therefore, demand will be rising. The question is about the inventories. Many pros are trying to short crude but it's not a smart move in my view. I think we will probably see $70 before we see $45 or even $50.

I will try to disipline myself today by lowering the # of my purchases but there is no guarantees. I will post every move but hope we skyrocket again today. Frankly I was up way more yesterday than Monday, and the market closed flat.....go figure.

As for a few of my dogs, GIGM and FTK, I still own them. FTK can go higher but may need to raise capital first. With oil higher ($60+) it should be able to raise capital. GIGM is another dog but I am sticking by it and it's one of my biggest positions. I cost averaged in around $6.40 but will hold for bigger rewards.

As for technical trades, I like OXPS, CTIC, WFR, LEA, and AXL. The charts are below but then again, keep tight stops (8% rule of thumb). I know it sucks taking a loss but sometimes it's better to take a small loss than a big loss. The flag in CTIC reminds me so much of RUTH it's not even funny; however, it has way more risk.