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Tug-o-war

That's how it felt today. The great tug-o-war between the bulls and the bears. A kind of trading malaise have set in and the markets are neither going up nor down. It's like that scene in Jaws (1975) the movie- the idiot mayor refuses to close the beaches for the weekend, but the secret is already out. Everyone knows that there has been a vicious shark attack on one of the beaches. The following weekend, its beautiful, but no one wants to swim because they- tourists know, that there is a great white killer shark lurking somewhere out there. No one wants to get eaten. So it is with this market, no one wants to really commit and buy stocks because they might get eaten by the great white recession. We know the recession is not dead yet. It's still out there. Lurking, waiting to eat you and your portfolio alive. Lol! Where is that dam Police Chief Brody when you need him.

All week there has been very good accumulation on the ProShares Ultra Technology Fund (NYSE ARCA:ROM) with the buy to sell ratio above 40 percent, and with very tight bid and ask spreads. If you are trading, you want to trade a stock with a tight spread. Volume was over 330,000 shares today and the stock ended down about .5%. I'm in at $32. Good price. I would have preferred $30 to $31 but I am confident the fund will be trading much higher in the next 10 days.

You would think in an environment for health care reform anything health care or health related would be doing well. Not so. The iShares DJ Pharmaceutical Fund (NYSE ARCA:IHE) is barely trading. This fund has everything that points to a great investment, low PE: 9.62, low beta:.0.70, perfect political environment, and a stellar blue chip holdings. Yet the fund traded less than 30,000 shares today. I would like to trade it but there is not enough volatility in the shares to trade, therefore I am suggesting a gradual accumulation of shares while it may also be a good place to park some cash for awhile.

06/10/09 10:18 PM
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