THURS JUN. 19 THOUGHTS

Ready for a unique phenomena for the week? Oil and the equities markets have been in direct correlation. This actually makes some degree of sense. The focus for the market seems to be shifting over to the performance of LEH - financials. The performance of the banking sector has been nothing short of abysmal. Thus, it becomes a bit of a ‘demand’ issue rather than a ‘supply’ issue for oil because if banks worldwide are in trouble, this also portends bad things for the U.S. economy much less economies throughout the world. The talk seems without a doubt to be shifting to the financials. So, without a doubt, keep your eyes on the price of oil because a gigantic rise or fall will be notable for the markets, but really keep your gaze upon those financials right now. Old-line banks are at decade plus year lows; it is very notable, worrisome, and troublesome. For day traders, really be watching these financials. Whether whacking new lows or helping the shorts along in covering on whatever the news of the day happens to be, it is certainly a sector to work with in the immediate-term.

Overnight, markets in Asia were drilled again with China now well off more than 50% from its record high. Tokyo and Hong Kong were down 2% each. Things are quiet in Europe though and oil down slightly.

ENER- doing massive share offering at 72 a share. They announced the offering several days ago- before the stock rallied 10 points. In the pre-open, it is hovering just above unchanged and rallying a bit; the best trade in it for the day is to get long it at a new high pre-open at 74.75ish. The best post-open trade is to short unchanged if it opens higher.

CSE- doing share offering; best guess is that it trends lower, but A-B-A2 probably the ‘easiest’ trade here.

HUN- the company was to be bought out, but the deal collapsed last night. Now, it seems as if the company may be in financial trouble. Best trade here again is pre-open…if 13 holds on the offer, it is a short below 12.95. Post-open will be an A-B-A2.

ESLR- signed massive contract. 11.75 is resistance area so post-open, it is likely a buy above there.

CVH- warned horribly. A-B-a2 here ,but hard.

UNH - HUM - WLP- should move in sympathy with CVH

AET- pre-announced reiteration of guidance, but still well down as of this writing. If CVH rallies, it is a buy above 40.50.

CWST - USNA- good earnings. A-B-A2

SSN - LPX - SHZ - NOG - KOG - ROYL - BDCO - GBR - FPP - CNX - MEA - HKN - ACI - BTU- all closed at or near their highs. If any of them open down, look to buy on continued momentum.

OZRK - ASBC - ZION - MF - RF - STI - CATY - STSA- all weak yesterday. Looking to short any of them if they open higher when - if they get to unchanged on the day

Good luck today.