The markets were up today with the Nasdaq leading the way. Going into Memorial Day weekend, I expect a bounce or upward bias in the market with selling continuing once things are back in swing next week.
FSLR – Sold FSLR yesterday, will look for possible re-entry if it moves higher, nice 7% move over the past few days. The P/E is in the high 40s and the stock will get creamed if oil corrects.
SRS – The SRS for those of you that don’t follow is the ultra short Real Estate index. Anecdotal information is finally beginning to emerge that the commercial sector in real estate will not survive and thrive as the market has them priced. The SRS has had a nice bounce off the double bottom around $80. My expectation is that this will be a lot higher than the Mar top it put in before all this is over. 9 of 10 top holdings in the index were in the red today. The move on this is going to be long and sweet, now is the time to consider getting in.
Oil – IF there is speculation, expect to see further selling in the USO tomorrow as traders will not want to hold this over the Memorial Day weekend. If you believe this is a demand driven story, well… good luck I guess.
