Stock Online TraderBulls & Bears Make Money, Pigs Get Slaughtered…Let Us Not Be That Pig…

Generally every day I try to target 2-3 stocks and trade max 2-3 setups only. I do not like getting involved in multiple stocks and be distracted.  Today was one of those distraction days. I made 5 trades.

POT was the wrong chart to go short. It was continuously uptrending. I made the mistake of shorting it, even though I shouldn’t. I was actually very patient with it and short @ 110.10, when it looked like it will go below 110 and sell off. I am holding this one overnight with stop loss @ 112.10. Hoping to get a sell off to cover into.

CSIQ was shaky in the morning but once it broke past 21.75 (days high) it never really looked back. I bought really late @ 22.20. Turns out I was not really too late, as CSIQ kept spiking. I sold almost in the last minute @ 22.77, pocketing decent profit.

VISN looks to be reversing back from its multiple days of sell-off. I am long @ 8.70, holding it overnight. Hoping for 9.00+ price action to sell into. Volume is on the lighter side, (I like stocks with heavy volume).  Hope it doesn’t crack back. Stop loss 8.30.

FSYS also looks like it might be reversing. It has taken a big beating from 50s to 30s now, in a matter of few weeks. I am long @30.20, hoping for more uptrend. I really liked the way it closed at 30.50.  Ideally looking to sell around 32 level.

SNDK was a buy for me on break above 27. I bought @ 27.10 hoping for more up moves. Unfortunately it dropped back to 26.80s. I am holding it overnight with stop loss @26.45.

S&P’s outlook for diversified metals and mining industry :

Our fundamental outlook for the diversified metals & mining sub-industry (in which copper companies dominate) for 2009 is negative, as we believe sales and earnings will decline in 2009 from 2008 levels.

Our expectation reflects our view that the price of aluminum, copper, nickel, zinc, iron ore and coking coal will decline, due mostly to lower demand and oversupply.

Based on the S&P forecast for global GDP growth of 0.2% in 2009, versus estimated global GDP growth of 2.5% in 2008, we believe that global demand for base metals will decline from 2008 levels. For example, we expect that global copper demand in 2009 will likely decline by 2%, versus flat demand in 2008. In our view, demand from the U.S. (the world’s second largest consumer) will decrease again in 2009 on an expected 2.0% drop in total construction and a 19.2% decrease in homebuilding. Moreover, we think that demand growth in China (the world’s largest consumer) will be up just 1% in 2009, versus 2008’s estimated growth of 3%. Partly offsetting the forecasted decline in demand, mine production of copper should be lower in 2009 due to production cuts in Chile. Through October 2008, mine production of copper was down 1.3% year to date. For 2009, we look for an average copper price of $1.50 a pound, versus an estimated average copper price of $3.10 in 2008.

Longer term, we believe that secular demand for copper and other base metals will increase. In our view, the industrialization of China and India will lead to greater demand. At the same time, we believe production of copper and other base metals will increase less rapidly than demand, as output at existing mines is exhausted and fewer new mines come into production. Consequently, we think that the copper price at the next trough will be higher than the $0.71 of 2002. Also, the next market peak should result in copper prices reaching a higher average level than the average price seen in 2007.

Year to date through January 9, the S&P Diversified Metals & Mining Index rose 14.2%, versus a 1.6% decline in the S&P 1500 Composite Index and a 2.3% rise in the S&P Materials Index. In 2008, the sub-industry index fell 75%, while the S&P 1500 declined 38.2% and the S&P Materials Index decreased 46.8%.

Yesterday I loaded up KGC and RIO. Special thanks to dumb-ass Cramer for his predictions.

KGC up 5.8% for the day. Surprizingly gold is down to 759$ level.

RIO up 5.3% for the day. Lets see if it was a dead-cat bounce or time for some reversal.

Both were over-sold and due for the bounce and that is exactly what happened. I sold both of them today for a sweet 1-day profit. Can’t complain.

Today i bought the internet-giant Google at the close ($414.40). 5 day chart shows 11% drop. Time for reversal ??

GOOG chart tell an interesting story. Previously Google bottomed at 412$ in mid-March. Can this be the double bottom ? I think so. With such lower RSI and Stochs, Google makes up for a safer bet. However if Google can’t hold 400$, it could drop even furthur. I would put my stop loss at $399.