Market Outlook - Aug 12th

Greetings fellow t247 peeps -

May prosperity come out way today, despite the bitterness of FTK. FTK, FTK, FTK...this is a classic firm that had it all running right in 2007 and now is nothing. It's equivalent to the a "dot com" firm but in the oil sector. I have seen a lot of things in my trading years but to see a firm not post a earnings data/contact information on a website, insider selling at $2, the firm firing their investor relations team to "cut costs" and about 20 class action lawsuits - is just not a good thing. This makes the second 'death' bomb of the year, next to the almighty GIGM - however, I still don't understand that one.

As for my market decisions, I remain on path of high cash levels and buying names of great quality. Energy seems like the best sector of all, in terms of "inexpensive value". I posted a screen shot of the RIG report and will do one for HES later today.

With my money, I will scale into more names. I think VALE is good name but my price is at $23, so tight margin of safety. However, the estimates do not reflect upturn in Europe, so if Europe can turn (or when they turn) VALE can print high $20's. I also looking at ADSK. I read a great report on them yesterday and independant research shows that licensing can but up for 2010. I would like it to hit $20 before I buy. FCX is still a good one for 2010 play on Copper and Gold mining.

There remains many uncertain economic variables that is not allowing me to be fully invested:

1, Interest rate uncertainity

2. Low Number of job births

3. Housing - not sales, but many people are underwater

With that said, I still believe cash is the best pick - for now.