This morning I placed a few limit orders that triggered and bought the following.

DRYS at $54.00

EXM at $22.61. I also saw a fellow trader at StockRake place this trade.

BG at $71.2

LVS at $40.70

I also took partial profits from AZK, VLNC and got stopped out of JNJ.

Slope of Hope a great blog on trader Tim Knight added a post showing one of his account with the new short selling rules in place….world of cowards

The chart for INET (Internet Brands) looks very bulls showing a bullish flag pattern with rising volume near $7 price range. The MACD is turning up which is good and Stochastic is above 83%. It looks like INET is going to run back up to $8.00 to $8.50.

Disclosure: I used to work for them pre IPO so I do have share in INET.

What a disaster the government has put us in. The ignorance. They kept saying we were not in a recession….what do you call then having to bail out Fannie Mae, Freddie Mac and AIG! Back on April 22, 2008 President Bush said “Were not in a recession” this was such a lie trying to blind side the general public.

Now with the proposed $700 Billion dollar bail out we will have diverted the toxic debt from the balance sheet of these companies but their future revenue is still broken and weak. The burden now is on the tax paying public. This will take years to pay off.

The euphoria we saw on Friday was just that an over reaction on the market. Do not be fooled by it. Yes, the financials gaped up in morning and short selling was not permitted yet the price kept coming down after the gap up???? Ask yourself…..Should the financials be going up or down with this news? The market was artificially hampered with the inability to short financials.

My outlook for next week is that the broad mark may rise about 5% but then sellers will come in to get out of loosing positions. I did try to get into the UYG on friday and missed it by $0.95 when it gapped up. I think the SPY will try to run up to $130 level where I would short this market. Were still in a dowtrend and the volume on Frida was less than the previous 4 days. Were heading back downt to retest $114.

Now I missed this run and will wait for the pull back. It’s too risky to trade the financials now. Instead I would buy GOLD stocks and the GLD. Investors will hedge their investments with gold.

My current holdings are : AZK, FCX, GLD, NNVC, NTES, PWAV, SDP, VLNC, WNR, JNJ, WMT, CLNE.

Yesterday we saw an amazing pop in gold up $70 in one day which was a record. I have been holding RBY, GLD, GOLD, IAG for double digit gains and with more upside as investors want to go to safety. Gold may retrace down to 820-860 which is great buying opportunity. Gold want to test the old highs of $980 back in July 15.

Bought CLNE today at a $15.05 I set a limit order as I have been watching this for the past few weeks. I Shorted this 2 weeks ago using PUTS and made great money. Now I’m going long since the volume has been drying up on the way down. Also it hit the lower rising trend line to give it support. Target is $18.07

Entered short on ENER yesterday at $61 my target is first down to $50 then lower in the $40s. It went over the last swing on lighter volume and closed under which is bearish. My stop to cover is just above $65.

On Friday I closed all my shorts AGU, MOS and FCX. I went long DIG, QLD and ICE on Thursday.ICE popped up 8% on Friday with buying pressure at the end of the day. ICE will run up to $105.

I also bought UYG (Ultralong Financials - 2x XLF) at $20.04 and $21.10. The selling pressure was off as I saw buying in BAC and WMU. UYG wants to now run up to test the last high at 24.79. I expect this will break past $25 then pullback to $22-23 for a final test before going higher. As you can see in the chart below we are still in a down trend and need to break out of this on strong volume about 350 million weekly.

Went long ABX at $30.5 which is a gold stock. If the US dollar continues to strengthen this will fall but the price action is looking good and its touching the lower rising trend line. Stops are tight.

went long GS (Goldman Sachs) at $161.04.

Went short on CLNE (Clean Energy Fuels) as the price went parabolic and should pull back. I bought OCT 17.5 PUTS for $1.00

I sold my QID (bought at$40.67; sold at $45.10) this morning and flipped to a small position into the QLD (at $70.50) which is the long of the QQQQ. We are testing the $70 price support and stochastic are way oversold.

I also got into the DIG and bought Oct 76 Calls @ $6.8. Again I think oil will hold at these prices for now and get a small bounce back up.

When is the best time to short a stock? Below is a chart that illustrates a great short trade on SMH.

1. You first must find a stock with a low price and high volume day.

2. At this swing the volume at 27 million. Next wait for a retracement bounce up back to this price point which takes time and patience.

3. This was the test and time to short in the $30-31 price range and volume was only 10 million. This means no buying pressure and time to short.