The next several weeks may be very volatile in the oil market. Iran is the central figure in the play. They are supposed to open their oil bourses which will be priced in Euro's and they are going to come under fire from the UN security council. Between the two events, oil has the very real ability to see $80 or higher if it gets ugly and Iran talks about cutting western oil supplies.
What can we do? We are not against buying either some call options or some oil stocks and/or oil service companies. The names that come to mind that could benefit would be RIG above $76.50, WFT above $43 and SU above $74.
The easiest play would be OIH, the oil service holder. A move above $135 could be a winner. Remember, if you cannot afford the stocks, look to see if they have options and don't forget, next Saturday we are going to begin a series on options and how to use them.
What's happening in tech land? Not much. On 11/23 the NADAQ closed at 2269. On 12/06 it was at 2267. On 2/07 it was 2260. We ended Friday at 2262. Sure there were a lot of wiggles higher and lower, but you get the point. This thing has gone sideways for months. Something will end this. We either set the leg for a move higher, or we finally fade away. In the meantime all we can to is pick off some short term moves and keep our fingers near the sell buttons. When the market is locked in a volatile rattle trap, it's all you can do.
They still have something of a love affair going for the little guys, so watch stocks like SCMR above $4.80. AVCI above $4
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This week if MEND gets above $11.25, we'll consider buying it.
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The chip sector was weak all week, so watch for a bounce in BRCM, MRVL, NSM.
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We think EBAY's looking for a bit of a bounce that might last more than a day. We are going in on a cross above the $38 level.
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