The Bull's Take

Bulls,

CNBC is taking it upon themselves to label today as the "biggest day in regards to the economy in the history of the united states". Personally the Bull sees GDP beating the .5% increase that is predicted but these numbers are so manipulated(yes GDP can be manipulated in a myriad of ways) that I am not paying to much attention to it besides to see how it will effect the opening of the market. In the afternoon the Fed WILL cut by 25 basis points and lets pray it is the end of these silly cuts.


Few things I am seeing in the market:

1. Dollar is starting to make a come back(3 week highs) which means the commodities are going down and will continue to drop if the dollar continues to rise. If the FED shocks the Bull and does not cut then the dollar SHOULD rise which means be short in all the ETF's dealing with commodities the next few days if the Fed does NOT cut.

2. AG is taking a hit and there is nothing the Bulls can do about it. When any sector is jumping from 20-80% up on its biggest stocks there is going to have to be a pullback somewhere. But the Bull remains very Bullish on AG and would be playing them tomorrow with TIGHT stop losses on them. Limit the downside and enjoy the upside. Also, POT today dropped to 180 and the Bull thinks its a buy with a tight stop loss. It dropped since the "star analyst" on the stock said he felt it should pullback BUT THEN IT SHOULD GO TO 300 by year end. Get in this baby when you feel it is done going down. It still has a lot of upside.

3. Secondary offerings are killing some of the Bull's favorite stocks. TITN decided to raise itself some capital and offer 3.5 million dollars worth of shares to the public and Citi today announced raising capital of up to 3 billion dollars. As a shareholder you want companies BUYING stock, not selling stock.

4. The IPO market seems to be coming back to life. V and IPI are both up over 50% from their initial offerings and next weeks pipeline of IPO's led by Colfax(oil company) have the Bull ready to make some money.

5. Financials just can't seem to get any sort of momentum. Just when they start heading up there is one or two of their peers that bring the group down as a whole(look at ETF XLF for Financial performance). The Bull stands by Citigroup even with this attempt to raise capital, and still loves WFC, JPM and GS.


What does the Bull like for today?

Penny stocks:

1. VTDI - over 14 million shares traded today and I think it has hit its bottom. Of course I would have a stop loss(15 cents if I was trading it) and see if I could not catch a quick bounch back tomorrow. Be careful with any penny stock.

2. HDUP - Another huge volume stock that I would have loved to pick up at 5 cents instead of 8. I think it can bounce back tomorrow but if you want to be careful maybe look for the stock to drop to .05 before getting in.

Options:

1. Call the Bull nuts but he thinks the June 08 call with strike price at 30 dollars on GIL could be a good find. Yes they lowered guidance but for 35 cents an option it could be a good risky move. Do not buy the 25 dollar strike price call.


Earnings:

1. I think GM could surprise people just like Ford did and make a 5-10% jump.


The Junior Bull's transactions:

1. 588 shares of KOG at 3.40

2. 17 shares of POT at 179.29

3. 100 shares of TITN at 20.15

4. 372 shares of TSCM at 8.05

5. 35 cent call options June 08 on GIL at strike price of 30 dollars. Jr Bull bought 43 contracts.

Total worth of all these securities is 11,561.73.

Costs: All the stock trades were still free. Option cost was 26 dollars.

Cash in bank: 12.27 dollars.


The Bull