Taking Stock: My New Wish

Working on wishes and prayers is not a good trading strategy, but I'll try it anyway.

My new wish, albeit that China is truly back in action, is to see the Baltic Dry Index find support on the 20DMA and start to move higher again. The BDI is the index to watch when trading Dry Bulk shippers, and demand from China can be a definite aid in driving the spot shipping prices higher.

From an armchair perspective, it seems as though gasoline prices have stabilized. I would actually like to see them start to move higher, which they more than likely will soon enough. Like Dan Fitzpatrick mentioned, the price of oil will definitely not go to $0. It is only a matter of time before the price of oil starts to move higher again.

From what I have read, and other observations, the stock market does not wait for the actual economy to turn around, it only waits for the conditions to be in place for it to turn around. From what I see, the stock market has already started to turn.

I'm still heavy in gold and silver, which has been moving higher lately. I'm quite sure that I have mentioned that I added to my gold and silver positions a month or so ago, which I'll trim back soon enough. It looks as though I will get one of the things that I wanted, because my energy stocks are lagging behind precious metals in turning around. I like that, because it will let me trim back precious metals after they have run for a little while, and roll it over to energy.

I still have my position in the infamous Crystallex (KRY). The way I see it, one of two things will happen with that saga:

1.) Crystallex & Rusoro will split the mine
2.) Crystallex & CVG will split the mine

Hugo Chavez has a personal problem with Tejera Paris, a UN Ambassador, having an association with Crystallex. What Hugo wants is for gold mining companies to go to a 50/50 Socialist Joint Venture model, which I am now betting that Crystallex will go along with. I had a feeling that Chavez wanted something, which I figured it was to have someone else operate the mine while he collects a portion of the gold. If Chavez really wanted to kick Crystallex out, then he probobly would have done it by now.

I had to sell my Axsys Technologies (AXYS), since it is breaking down, and I have no idea for as to if it will ever turn around. With energy and other commodities, we are in a multi-year cycle for hard assets. Energy trades with the CRB and the price of oil.

According to Stephen Leeb, and Dan Fitzpatrick has also mentioned it, there is a substantial amount of money sitting on the sidelines in Treasuries and the Stimulus packages. It comes out to being around $4T that could come flowing into the economy.