To play or not to play?

..that is the question!.  Why?.   Well, things looked particularly interesting today, to say the least!    Market ended higher despite the notable weakness from the commodity sector.   Here's the thing, a strong market without the participation of any commodity play just looks deceptive to us, maybe this hit a few in the head too late as we came quite a bit off the highs.   Today's pop was led by financials and many financial plays on our list seemed to have broken out from their recent channel.    Other than a few selected tech plays, most of the plays we noticed just did not want to participate in today's mid day rally.     As far as tech plays go, MSFT's uninspiring report tonight may curb the recent tech enthusiasm some.   On the other hand, we've had enough inspiring reports from GOOG and the likes to really care about MSFT at this point.   The question so remains, do we trust this financial induced move and chase those plays higher?    To us, we'd be a little cautious chasing anything higher at this point going into next week's fed meeting, but with 13000 just around the corner many a short will probably not want to be too short into the weekend.   Therefore,  a short covering  induced move sometime Friday is not out of the question.

Commodity plays!   Lets face it, the past two days haven't been pretty for most of the commodity plays, especially today.    From as early as Monday, we had noticed some short term climatic action from many commodity plays and we said we're quite light as far as positions held are concerned.    The same trend continued for the following few days and we think we may see another day or two worth of profit taking.   Frankly, we think many of the commodity plays do need a necessary pullback as we've been harping in order to make this bull trend last longer.    Can this be the beginning of an end for some of these commodity plays?    It's possible, anything is possible,  but we think it's not likely.    This again feels like just profit taking and it's normal consolidation.    However, we should point out that when these commodity plays correct, they do correct in a fast and furious manner as witnessed this morning.     Considering the magnitude of the drop off the open, we were considering to dip in some, but then decided to give it at least another day to see if there's going to be turn around the corner.     The trick to play these commodity plays is that we don't need to get in at the absolute short term bottom, we just need to make sure that we catch on the up turn when it comes.  Save the head fakes for the a sport or two.

Coals, this is the area we are keeping our eyes on the most next day or two to move first into.   Other than that, we'd simply give other commodity plays some time to work their way out.    One thing is for sure, this market often has its ways to deceive you.   We really have to pay attention to what's going with the action of our plays to gain any trustful insights.

We'll update our watchlist, some notable charts this weekend to go with the DJIM weekend Journal edition.   Have a good weekend!