Blog Post

The last few days have been interesting but I still don't see a direction yet.  Contrary indicators are pointing to a bottom, at least short-term anyway.  I have been waiting on "the big drop" for capitulation and a spike in the VIX, but it hasn't come yet.  If everyone has been waiting on it, then perhaps it won't come. 

Sat on the sidelines due to the shortened trading week and because I was traveling.  The sell off I expected on Monday never came and it turned out to be a roller-coaster day.  Made a small profit on the QID.  Nice rally on Tuesday, but I prefer to wait for a follow-thru day before buying anything long. I guess I am market neutral at this point, waiting and watching for opportunities to jump into an inverse ETF and building a long watchlist.

On the long side, I do like the alternative energy sector long-term.  Regardless of where oil goes from here, this most recent price increase has sparked investments in solar, wind, biofuels, and nuclear. Looking at the big picture, this move may be similar to growth industries in the past such as automobiles in the 1920's, television in the 1950's, and computers in the 1980's. There is a ton of new technologies being developed in these areas and a flow of investment capital to support it.  Gov't support has materialized in most countries including the US.  Even T. Boone Pickens has jumped on board. Keep an eye on innovative solar companies, hybrid tech companies, and nuclear tech service/support.