DJIM #52 2008
Monday, December 29, 2008 at 07:48AM Once again, we are at this special time of the year. Yup, this is the last weekend journal of the most turbulent trading year probably ever encountered by almost all involved in trading the markets. First, we hope everyone had a great holiday so far. It is more crucial now than ever to take your minds off the market and enjoy your time with family and friends. This is partly because a positive bias has been emerging to begin 2009 off with and so you'll most likely get back to trading at a faster pace soon.
The upcoming week is probably going to be light as well, we'll assume there will not be much going on, but Fridays, 'Geo-political tensions' in the Middle east should spark interest in Oil and commodities. Once a country like Iran opens their mouth on the tension, oil will be a hot topic. We're positioned well as we've highlighted our interest in the E&P's for other reasons last week. Some of the natural gas companies such as HK, GDP and CHK CRK were been punished early last week during the oil sell off. With the potential firming of crude oil due to the ongoing situation in middle east, we feel some of our favourite oil/gas plays will be bid up as a result. The only thing we wouldn't expect is a lot of volume. Remember, the coming week is still considered a holiday week because of New Year. Most are still on holidays or just gearing up for the New Year's festivities.
One thing we do know at this point is that things are bad out there and economy will probably get worse before turning better. They say the first few trading days of January will indicate the kind of market we'd be in for the whole year. Although we aren't superstitious in that way, we do feel it can give you a pretty good indication on where the investors want to trade this market for the next few weeks.
We'll be on every trading day this week, but we'll take things nice and slow and finish this year off on good spirits.