The Summer Doldrums...

I've been poking around here and there reading blogs, email and messages on the Tag and there is an overwhelming sense of depression I'm picking up on and feeling as well. August is notorious for light trading volume the last two weeks of the month and thus it seems hard to get a trade working in either direction. In nautical vernacular, the doldrums are an area of no wind making getting somewhere on a boat nearly impossible. Throw in a little summer heat and high relative humidity, sailors could and would perish as a result. Throw in a Gyre (a circular current that is difficult to escape from especially when there is no wind) and you have a real recipe for depression. It feels a little like that in the market right now, doesn't it? Next year I may just do what Wall Street does and take the month off.

That said, apparently Ben didn't have anything too exciting to say one way or the other. One of the stronger groups today is the drillers/explorers which makes our recent positioning in NGAS quite profitable thus far. From the long list last night, SLXA and ISV both look like outstanding entries right now and it really is nice timing as we want to enter our positions in periods of low volatility and exit them in periods of high volatility. On the short side, RIG (a Daviddt pick) looks good as does BVX and maybe HYC if you have the stomach and patience for it. You may have trouble on HYC as Scottrade let me know they can't borrow enough shares to keep my short in place and I need to cover half the position.

So that is it for now, stay out of the sun, drink lots of water and try and be patient as the Tradewinds are fast approaching. Don't try to force something to happen now, you'll just tire yourself out blowing into the sail.