How Low Are We Going?

Question:

How low are we going? Is it too late for BGZ?

Answer:

Can't say but we did get a double bottom breakdown signal yesterday with a price target of 850 on the S&P 500. Since we're already into RSW and FAZ with spec. positions, I'll hold until 880 is broken. If 880 goes down then I'll ratchet up into a larger stake.

Could you get in now? You are in the no-man's land of 880 - 920. The index could bounce back up to 920 and you'd be upside down in a hurry.

You should likely wait until a break of 880 before doing anything.

Healthcare Reform?

With shrinking margins and the US government having it in its crosshairs as the next industry in which to destroy the free market healthcare seems to be a good place to short. Research time.

Granted the stocks have rebounded lately because of the "clarity" coming from Washington so, near term, who knows? In the long view I don't like the prospects of a well run industry.

Semiconductor HOLDRs (SMH 21.05)

Stop is $21

S&P and Financials Breaking Down?

Into spec stakes:

• Direxion Financial Bear 3X (FAZ 4.82)
• Rydex Inverse 2X S&P 500 (RSW 90.33)

Quiksilver (ZQK 2.98 -18%)

Quik getting crushed on near-term worries. The new financing arranged by the company is at 15% and gives rights to the lender to buy 20% of the company at $1.86, a very dilutive proposition. We're holding, now, but contemplating it's future. Read more on MSN Money

Broadcom (BRCM 25.91)

Cramer highlighted Broadcom on Friday's Mad Money.

Watching

• Chesapeake Energy (CHK 23.71)Watching for a break above 25 on good volume (25 mm shares).
  
• Fluor (FLR 53.04) Sitting on resistance. Look for a pullback to 50ish, reset and hope to make a run back through 53 on good volume. Ascending triple top breakout signalled today.
  

Penske Will Buy Saturn

Penske Automotive Group, owned by racecar legend Roger Penske, will buy GM's castoff brand. Read CNN Money.com

All news sources for Penske via Google

Jimmy Says, "Don't short the market!"

Jim Rogers on CNBC's stock blog says we're embarking on such a currency crisis that he's pulled all of his short positions.  The last time he did that was 1987.

Per GM Letter Delivered Today

First sentence reads:

"As you may know, GM is using an expedited, court-supervised process to accelerate the reinvention of our company."

What the hell does that mean?

Stops on Positions

• Quiksilver (ZQK) $3.00
  
• Urban Outfitters (URBN) $21.00

Dollar Tumbling, Inflation Forecasted: What to do?

You must have some level of inflation protection going forward, yes?

Read CNBC piece.

Reviewing our stategies in commodities, US Dollar & Gold.

The Markets are taking a breather

DOW 8619 -122

S&P 926 -19

NAZ 1811 -25

Gonna' continue to add to positions on this pullback unless S&P 500 920 is broken.

Semiconductor HOLDRs

Into more @ 21.07 for an equal weight position now.

S&P 500 Support

Support for S&P @ 920

S&P 500: 930.84

Semiconductor HOLDRs

Into SMH, spec stake, @ $22.01, yesterday.  Will try to get more @ $21.10 today.

Watching DIS & URBN

Into Disney with a break above 26.  I'll be delivering a hands on report in about 3 weeks, July 4 week.

URBN, ascending Triple Top Breakout signalled yesterday. Looking to add to our underweight position.

You know that Ford is going to go through $6.50, don't you?

Quiksilver (ZQK $3.11)

Trying to bring Quik up to equal weighted position with limit @ 3.05 but only a partial fill this AM @ average $3.04.

Ford (F $5.99)

It's a certainty that Ford will chase GM's market share.  A break through 6.50 and we'll be into a spec. stake.

Art Cashin: This is a very, very dangerous period.

Art Cashin is very concerned about the dollar as it's fallen to a five month low among other metrics.