Tension is good...

Okay, we aren't going to judge the right or wrong of the world's major issue on this site.    The tension in the little region called Georgia has provided a delayed heavy lift to crude oil intensifying the commodities rally.    This tension, along with what could be the technical bounce of oil price, is certainly good for all of the commodity sectors.  As far as the indexes go, it was a mixed day, but the SPX battle of recent weeks looks to have been won by the 'Bulls' for the week and some short covering may take place Friday.  We may have more than just the commodities to trade.

Yesterday, we noted in the journal that we are hoping to see some follow through in the commodity sectors and today, miraculously, we got our wish!    Perhaps, traders may use the conflict in Georgia as the catalyst to buy up oil, but we think oil probably would' ve gone up today regardless because of the stabilization we`ve talked about a few days ago.     When we look at USO, the main tracking stock for oil and gas futures, we couldn't help but feel the downtrend has been broken and now we look at $100 as a resistance level.    Does this suggest a multi day run-up is coming up ahead of us?   It is certainly possible, but essentially as long as it inches higher, we don't really care how fast or slow it creeps up!.  Take into consideration, since our Journal this week in regards to having our fingers on the commodities switch, the $CRX is up around 5% since and some creeping back is always possible as the USD/OIL plays it's usual role.

This upside move is definitely good news for many of our, "love it or hate it" type of plays.    Many of the familiar "Shale" plays, Coal plays had a blast today.     We really like what we saw today and as we said before Wednesday`s trade, "...we won't waste too much time entering some positions spreading them around .....".  That's right, we aren't just sitting there watching the plays,  we all have our favorite commodity plays in each group to trade and the switch has been turned on to get back on board the last few days.    As the day progressed the more it felt like last week's low was the short term bottom for oil and as well as many commodity plays.   Assuming oil stays relatively healthy the next little while, we'd like to see some more back filling from the commodity plays with an upward bias.   That way, there'd be plenty of time and opportunity for us to get back in and trade them higher.    It surely beats watching FNM/FRE taking their beatings every single day.

As far as EPS plays go, ROCK tried to break out today and we are keeping a very close eye on it.  The volume isn't great but it did manage a nch at the end.     After some early shakeout, FSYS also managed to close above 9 ema as well and it doesn't feel like the play is over.   It's literally one hour worth of trading away from a new high as well.    With AFAM, it looks like patience is needed but we like what we see during the last couple day's worth of action.  We added former DJIM play, SPWR back to our list.

Bottom line, all of sudden, we`ve found ourselves busy again.   Like we said before, when oil goes, the entire commodity sectors go with it.   Fundamental reasons are also present.   We have to take advantage of these kind of opportunities.