Fly on WallStreet

The market is taking a well deserved breather. Yesterday, I started hedging my longs by going short RACK. Considering it just failed to break its 50 day moving average, I feel betting against RACK, at this juncture, is a good idea.

Also, I strongly suggest staying away from the energy complex-- as the price of oil and natural gas continues to dive.

All the hoopla that preceded this year's hurricane season is just about nil, even though there is a new Tropical Storm in the Atlantic now. Nonetheless, it appears wind shear will keep the fury of mother nature in check. Thank God.

So, in the near term, the only catalyst for the energy sector is Iran and the upcoming winter. In short, I feel the sector will sell-off, until the underlying commodities stabilize. Originally, I suggested to draw a line in the sand at $67 p/b. However, it is possible for oil to temporarily trade below that level. I will keep you posted.

The following energy stocks have absolutely no mojo:

ALJ -6.9%
HOKU -5.5%
VSE -4.7%
DK -4.6%
SYNM -4.5%
SUN -3.6%
NHY -3.4%
WNR -3.3%
OXY -3.3%
PEIX -3.2%
GSX -2.8%
EPEX -2.8%
VLCCF -2.8%
DPTR -2.7%
CAM -2.7%
GDP -2.7%
HES -2.4%
UPL -2.3%