OIL REBOUNDS

"Hello" I said as I picked the phone sluggishly this morning.
"Your money or your life? " said the caller.
"You could have both..." I said.
"What?" he was baffled.
"Whats one without the other... " I laughed and hung up. Gosh its 10.28... thanks for the call I muttered as I had to check the oil inventory numbers for my blog.

Early morning 10.28 in NY. the weather is warm still on August 29... Warmth is something we bask in as winters are brrrrr.... and bitter.
Well, the CNBC show is on and they are just reporting... the oil and natural gas inventory numbers are BULLISH... for the price of oil and natural gas and so for the oil and nat gas stocks obviously. NBR (29.5) and PTEN (20.9) are my picks. Theres no way but up from here.

The market is behaving well. I say that when I am able to predict the moves. Bear with me, ordinarily 250 point down days are not considered good behaviour. But yesterdays crash was way overdone with no basis at all. To make investors nervous it may do this all week.

I was explaining to my son how wall street is also quite like an amusement park. We have slides and see-saws as the prices slide and see-saw and sometimes we have roller coaster rides... wheeeee up and up and up.... and down and down and down.... making the players giddy. He loved that analogy.

To my mind, there is no reason except technical for the DOW to slide below 13000. The sentiment next time will be positive, I mean the August blues will be wiped out of our minds by then, so whats to fear.
Sub-prime is history.... there still will be lay offs... and shut downs of mortgage units in big and small banks... thats GOOD news... punish the sinners... And salvage the winners...whatever.

Meanwhile until the Fed returns with a rate cut on September 18 (he'd better) we certainly will see see-saw movements... between 13000 and 13400.
Yesterday, the elephant that was watching ran and pulled the trigger for a BUY GRMN at 96, BRCM at 32.25 and TTM at 15.8! All for a trade and they are all good long term plays as well. And one speculative BUY TSL at 40. No guts no glory. Its a solar play. This ones had a ride from 55 to 39 to a whoooopy doooopy 73 when the solar stock just soared to the sun.... that was atrocious (will tell you some day why) .... and then from 73 to 39 again. THATS the time the elephant decided to finally buy for the next roller coaster.... The earnings were out last week and they were good... gross margins coming down but that is discounted. (Discounted means that the market already knows this... so the price will not move down further based on that information no more) The target price to sell is in the range of 50-55 somtime soon. I am sane and not greedy. So there!

Theres always somethin to say about the market.... and I shall say it each day... insights from mona are your keepsakes. When someone calls you or taps you with a gun and asks you " YOUR MONEY OR YOUR LIFE" remember to save your life first... money you can always make at leisure.