Being long. Yes the morning open basically wiped away all of yesterday’s action, and then todays selloff definitely sucked, but a profit is a profit. Today I made back 1.4% in the RUT and 1.7% in the NDX. So aside from yesterdays drop, today would be a nice day. I’m still long the indexes and I still think a rally is coming. NOBODY THINKS SO AT THIS POINT. I’m by myself in this boat.

Tomorrow LEH – Lehman Brothers reports before the bell tomorrow. I’m hoping for positive things or news thats not as bad as everyone thinks its going to be. Everyone thinks its going to be bad already. It might give a spark to this year end rally I’m looking for OR it causes a little more selloff (only a little) and volatility from here till Christmas. Then the market puts the fork in financials and moves on to other sectors. Those sectors are….scroll down.

It was a nice day for stocks though.

MTW – Closed up 9.9%

HSVLY – Nice recovery from yesterday. Tested its 21dema and reacted well.

CSCO – I dumped CSCO a few days ago and today it pops. This sucks for me, but it rose above its 21dema. So now look for a test of its 21dema and by that time it might be a full blown buy.

USU – If oil goes up, everything else that is anti-oil will go up too. That means you’re solar, wind, nuclear, coal, and other alternative energy stocks. This one is starting to move back to where I got in, but the time decay is hurting my call options.

JOYG – Had a decent move today.

ICTL – Almost back to where it needs to be. I was down 35% on this trade only a week ago, now down only 15%. I say only because this stock can move that much in one day easily.

MSFT – Its really settled in here. Look how its acting around its 21dema. I think MSFT and tech are 2008 stories.

SMH – Nobody wants to get on that train yet, but this area is improving. AMD talks tomorrow it could help the whole sector.

Say what you want about Jim Cramer, people seem to love him or hate him, but tonight on Mad Money he had a point that really struck me stupid (I’m bet I’ll be #1 on Google for that phrase). He was talking about the Fed and that they didn’t give the full .50 point cut. He used the analogy that its like a Chef taking chicken and fish off the menu. You can only eat meat now. The meat, is the stuff that is working now. If the Fed gives the .50 pt cut it widens what stocks would have gone up. It would have been a pickem instead the focus has narrowed.

Maybe the banks and financials would have rallied if they did .50 here and did future cuts, however, what has done well during this tumultuous time?

At some point, the market is going to forget about the financials and let them drop while funneling dollars to the tech sector in a big way. Remember 1998-2000? Those times are coming back starting in 2008-2010. Mark it down :) .

So what sectors are going to be hot in 2008? Nobody knows, but these are my guesses.

Agriculture

Oil (again?)

Steel (steel is hot…rolled)

Tech (in a big broad way)

Alternative Energy (going to be huge for years)

Healthcare (yes this is the year Healthcare comes back- because of political situation)

Retail (New emerging brands like my JOEZ, or EDA which is American Apparel)

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