Yikes, the markets sure showed today they could finally turn south and break through that 890 (S&P500) resistance floor we thought had been established.
The short-term market direction remains very difficult to read and predict. I sure thought this Fool’s Rally had the momentum to hit 1000 or 1050. Maybe not. It didn’t look good in the second half of the trading day.
I hate to see the markets move down like they did today when I’m NOT MAKING ANY money on it! (Remember, early this week I dumped my 15%-of-portfolio position 2:1 leveraged short the S&P500 ETF.)
Well at least I kicked butt on oil stocks today. Wow. PBR hit 50% net appreciation (gained in under ten days) before it fell back a little at the end of the day, as overall stock markets fell back
I have very mixed feelings about holding onto my basket of oil stocks (that are showing on average 30% gains over just ten days). I kinda think oil price will pull back again, probably next month.
Is this a case of buy on the rumor (anticipation that OPEC cuts production in Dec) and sell on the fact (OPEC has now stated they WILL cut production again!) ??
For now, I hold onto the oil stocks, and cry in my Starbucks over fact that at the low of $40/bbl I only moved 20% of my entire portfolio into oil stocks. I should have gone with about 50% of portfolio on THAT bet. I mean, come on, $40 oil. How could I go wrong betting on that?
