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.

RGLD - Royal Gold is still looking good holding well above EMA9 and EMA21. It’s still on target to go towards $37. (Original entry)

FCX - Also another precious metal stock play is holding very well. Yes, there was a sell off on Thursday, but the price on Friday did not go lower then the low bar on Thursday and on lighter volume. It may test $112 but then head up again.

ICE - I got stopped out on 10/11 @ $158.3 but I did get a +16% profit. This was a classic top like I speculated that it would attempt to rise to $164.99 which it did on 10/10 and 10/11. On 10/11 it hit a whole number high of $165.00, failed and closed down with wide price spread. I am going to re-enter at $153.20 if the volume looks good.

AIRN - Thank goodness for stops, I got out for a small loss but it could have been much worse. I like the action on Friday when it close above the EMA21. If it can close above the EMA9 on higher volume I will get in again.

POT - Trade is still in play (Original entry)

VLO -Price action on Friday was good. Still on target to $78.52 (Original entry)

FCX -Freeport McMoRan went down today because spot gold lost $14. FCX did not break the low of yesterday and was on loghter volume which is good.

CPST - Capstone Turbine I was stopped out at 1.17 and did not get back in the trade. The good news is that it hit my target price of $1.12. The bad news was that I forgot to place my order in……..

ICE - InterContinental Exchange is still holding strong with a current unrealized profit of 11.8%. I still think this will go up to $165.

DO - Diamond Offshore, still in trade at $111.52, it formed a bullish hammer which is positive but let’s what the action in the morning as I think oil prices might go lower since the US dollar bounced higher today which is why gold traded lower.

AIRN - Airspan Networks entered at $2.55 this morning.