The Train has Left the Station

Commodities were down yesterday, despite the huge rally. Today, with the market dropping about 100, they're down even more. Well, there's nothing to do but watch the train disappear in the distance. Actually, I should be watching for the next one to come in.

I was thinking of selling my bonds yesterday, but they actually went up despite the rally. Seems that the bond bulls aren't going to let go of their prize now. Neither will I.

So, where are the opportunities now? Maybe short tech. Just read in David Rosenberg's Merrill Lynch report that CAPEX spending in the US is now down four months straight, and a worldwide survey shows 43% of companies intend to cut tech budgets.

Then there's Russ Winter's play on grocers, food producers, and other companies that benefit from the bursting of the commodity bubble, and sell a necessary product.

With PWE and HTE down to almost yearly lows, I think I might pick up some HTE here, for a juicy 18% yield. Also, the short interest in nat gas is bigger than ever going into the winter. A little bit of cooling from Gullible Warming, some European price hikes from Mother Russia, and natural gas will be a gold mine. Errr, I mean before gold decided to take up skydiving.

Other than that, there are those "green", and with oil near $100/barrel, completely inefficient waste of resources, the windmill and solar panel companies. They have also dropped like lead turds down a toilet.

Commercial property bears some looking at, as a short opportunity.

However, with everything down sooooo much, maybe I should also look to take a profit or two with any other big drops.

And here's a gem from Russ Winter:

Although there are other costs, mining in remote regions is primarily an energy intensive operation. In terms of the capex necessary to develop mines, and the costs of operation, the focus should be on the relationship between costs and the final product. Simplifying it just a bit, one ought to be comparing changes in the price of oil and diesel versus the price of gold. In the big commodity correction so far, gold has sold off about 22% from
its peak, and oil 32%. That relationship or arbitrage should be bullish for
these companies. Indeed if we saw gold drop to $750 gold and oil to $90, it
would be even more bullish. Instead these names have been massacred,
creating some very good values.

I like it! I think I will buy a little more OZN, which is now down to $0.69, or about 40% from where I was buying it earlier this year.