Wednesday, September 17, 2008


I will be buying the coals tomorrow, but with very tight stops. These are great stocks to day trade if you know which direction they will go. The oversold ones would be the most optimal plays. The action today was crazy: opened strong, sold off with crude, rallied towards the end, sold off big at the very end. The only way you can make money here is to be very defensive and sell whenever you have any significant profit.

I *hope* an upward trend develops soon, but I would not be willing to lose money if this does not happen. I would rather make a little bit of money and watch a stock run off than to turn my gains into loses. There is absolutely no momentum in stocks in this market.

UPDATE: Oil is now trading higher after hours at 97.5, it closed at 96.6. If it can keep this up tomorrow, coals should be solid.