Time 3:05

Stocks: DSX, DRYS, TBSI

The dry bulk shippers all have the same chart patterns both weekly and daily. Massive weekly reverse head and shoulders. Breakout above the 200 day MA and strong volume. The fundamental story is the opposite of the FDP story of last week. FDP had bad EPS #s partly due to the higher than expected shipping costs. That should mean that t he shippers should have better than expected numbers. The 1st look at the sector is GNK. Yesterday their EPS came in .15 cents higher expected and Revenues were also well above expected. The stock is up 5% on the news breaking out of a strong base on volume. We need to buy the best S/D rated and RS rated stocks going into their EPS news over the next few weeks. That would be DSX, DRYS, & TBSI. Wait for the right 60 min. charts and go to work!

CEF & GDX:

The hedge is off for now. I'm not sure I need it. CEF seems to be carving out a bottom. The stock hit a new low yesterday on huge volume but momentum is not even close to as negative as before when the stock sold off. The 200 day MA is right at 11 and while the stock may drift down to that level I don't think we need to be hedged against a big move lower. In fact, an alligator move that breaks the downtrend should be bought. The stock is right up against that line.

Market Comments: Fed annoucements today refocus the market on the reality of further liquidity increases that will add to the inflationary story. The sell off in commodities leading up to the Fed decision to stop lowering rates will now give way to the resumed trend in commodities to the upside as the real liquidity inflation continues. The FED is working in concert with the ECB to try and lower the libor rate and the FED is now accepting ABS that are AAA rated (ha, ha) along with MBS.