Yes, the economy sucks and the outlook is terrible.  BUT, for now being long financials is the traders money maker.  I've been long in UYG and have a nice profit in it.   For now, a short term bottom is in.  When everyone realizes the market sucks they sell and soon the market runs out of sellers and it makes it easier for a rally to begin.  The rally will continue until everyone thinks the market is good again and then it will sell off and make new lows.

I sure hope you are right...because I'm currently holding UYG.   My prediction for tomorrow, UYG will be slightly in the red.  DIG will be in the green.  Will see...

You may be right with a very LT perspective, bu I don't see it in the near future.  And I wouldn't want to have my money treading water until UYG does come around.  I was heavy long in SKF and am selling out today - you never go broke taking a profit!

Stardust:

I sure hope you are right...because I'm currently holding UYG.   My prediction for tomorrow, UYG will be slightly in the red.  DIG will be in the green.  Will see...

Be careful with this little animal......the market could sell off soon.  Today's action was a warning......if bad news starts selling again in panic you'll need to jump ship.  FNM may send this one down in the morning.  If it falls below $21 without quickly recovering....it will be time to get out.  Also keep on eye on oil.  Financials have been sensitive to changes in the price of oil.

UYG had a great day today.......hope you took some profits off the table.  Today is FDIC Friday......you never know which bank might bite the big one this evening.

Profit?  I wish...my break even price is around 26.   However, I did buy some SKF around closing time.  

Stardust:

Profit?  I wish...my break even price is around 26.   However, I did buy some SKF around closing time.  

 

I sold all of my UYG at $22.70 and bought SKF at $114.  You may want to consider selling off part of your UYG into this strength then hedge the rest with SKF.  Then when UYG bottoms out again sell off your SKF and average down your UYG.....rinse and repeat until your UYG is green again and don't let it turn red on you again.   The key to making money is not losing any.

Oil has spiked up $7 since Friday......probably due to Russia/Georgia but not totally sure.  Doesn't look good for the market on Monday.



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Another bit rally in UYG today.   Well, I sold SKF this morning and bought it again around 110.

Nice going.  I sold 1/2 and went heavy in UYG this morning.  Sold UYG again at $23.91.  Now I'm shifting my weight back heavy in SKF.  SKF is forming a hammer today.   I think we just saw the top in the financial rally.

Unfortunately, I sold all  SKF near the end of the day at $112.49.   I think the market probably will have a second wave rally tomorrow which means I should be able to buy SKF again at 107 or below.

Look like I will miss out on SKF today.:(

Sorry to hear that......told you yesterday was the high in financials.  Get back in on a dip and hold SKF to $200.

Hi Jackg,

What do you think about the current rally today?  I think UYG will continue to climb higher until Friday and will close on the green for the holiday weekend.    What do you think?