Opening Notes:
Allocations from most of the funds are done and we are approaching the half way point of January. Do the bulls continue to reign on the macro picture with the new money in the market? Until more indicators flip their signal I believe so but the momentum is slowing and a lot of money is now off the sidelines. Jim Cramer on mad money yesterday was saying buy, buy, buy because this bull rally is for real and continuing...he said a similar quote in June of '08.
Buys to Watch:
Canadian Dollar- After watching currency action yesterday and overnight with many on the precipice of big moves I believe the Canuck is the safest play and has a base for some nice momentum. Look at selling Euro calls to fund it because it is a matter of time before the fundamentals catch up to it, evidenced by this mornings tumble
Bonds and Ten Year Notes- Broken record but nice reversal base and the curve looks favored towards the long side
Sells to Watch:
Heating Oil- Clearly could not take out it's top and establishing a downtrend. Plus, my ten day weather forecast looks balmy in the upper 30's. Look for retracements if you get them.
Put on the Radar:
Gold- Small head and shoulders top forming and reached a decent recovery zone reached during the allocation so look for sell opportunities
Euro- Too many people were on it, thus the goofy reaction to unemployment...Now that they got burned be ready to jump on the mover over the next couple months. Also one of my favorites to sell calls on to fund other trades
Japanese Yen- The contrary mover to among the foreign currencies also looks on the precipice of bullishness...could be some unorthodox spreading opportunities here but need to think about it more.
Football Betting Picks:
Chargers v. Jets Over 42: Rivers leads a high powered offense that scores TD's and Revis on Vincent Jackson will only open up the door for Gates and the Chargers running game to exploit the Jets blitz. Chargers will at least score 27 points so I like the over.
Cardinals v. Saints Over 57: You saw what prime time Kurt Warner did to the 2nd ranked Green Bay D...and in turn what happened to the Cards D. The winner will score in the 40's so I take the over.
Colts v. Ravens -7 Spread Colts: They played each other in Balt. and the Colts won 17-15 but to get the win their D held the Ravens scoreless for the last 7 minutes. I expect Manning to come out with a vengeance and at -7 you get (+110) on Bodog so I like Manning to get rid of the ball and avoid the sacks
*If the Chargers point spread goes to -7 I like it a lot
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