Posting quick here as while I was writing on the chart the stock broke $38 and triggered my buy order.

$38.05 buy point, 2% stop and look for a close above $38 today to affirm direction. Initial target is $40.

Watching it live high is $38.13 and there is some consolidation occurring, next buy point is at $38.20 or the high $37s if it continues to trend in this range.

I was 100% vested on Friday and within three hours was 100% cash. After calculating the damage I realized my portfolio had bled just over 1% compared to the S&P 500’s 3%. In fact, without those stop loss orders my portfolio would be down a staggering 7% right now – that is just ugly.

With that said I am still 100% cash and am only looking into fertilizer stocks, plays on coal and other ores, and oil related picks for momentum trades. They are the only trends with bullish momentum – I am not involved in shorting of any kind.

Starting tonight with the S&P 500 you will see the brutal picture developing. For all of you investors who are long out there, god bless your souls and hopefully you are well diversified.

Only one trade I am looking at for now and it is a play on iron ore. Momentum trade details below.

And STTG reader Rick emailed me today letting me know he bought JRCC today using my momentum trading technique – a 11% return in one day. 

Today I have featured Dryships (DRYS), Genco Shipping (GNK), and Excel Maritime (EXM). Readers of this blog know we ran Dryships from $88.20 to over $100 not even a month ago.

Before taking any position you have to understand the rules of the game. You can refer to my trading rules if you like, or use your own. Personally I cut my losses extremely tight, and I am never afraid to take profits.

Just so readers know I currently have a position in EXM which I grabbed yesterday at $52.05. My stop is currently at $51.35. Unless DRYS and GNK start moving up the probability of EXM making a decent run is slim.

4:22 PM EST Update: I was knocked out of my EXM position at my stop. DRYS nor GNK hit their buy points so it looks like this group needs a little bit more consolidation yet.

Raise your stop losses from $36.75 to $37.55, and keep your target price still at $40 – $41.

Also my buy order on EXM was hit today at $52.10 which is a play on dry bulk commodities shipping. Remember DryShips? Looks like this trend may be back in favor after finding key support. More on that though later.

QID is currently trading at $37.42 which is the ultra short ETF of the Qs. Basically, when the market goes down, this ETF goes up double relative to the QQQQ.

I bought a small position of QID here at $37.42, and placed my stop limit order at $36.75 (about my standard 2%). The key number for the QID is $36.81, because if the ETF falls below this price it means the NASDAQ 100 has made higher highs. Target price for this trade is $40 – $41.

Here is a chart so you can see the trade visually. Odds on this play are maybe 25%, so bet accordingly if you wish to participate. Feel free to view my trading rules for help.

The correct entry point on ANR was with the break of $74, my stop limit buy order was triggered at $74.10. Target price for this particular play was $78 – $80, risking a little less then 2% on the downside. Personally I was knocked out right at about $79 as I kept raising my stop loss limit sell order throughout today’s session.

Here is a daily view of ANR, today’s action highlighted in yellow:

And for those are active traders here is a intraday look at today:

This is the 2nd momentum trade playing off the Alternative Energy trend. If you didn’t catch the LDK Solar (LDK) 14% run in three days, read up on it here.

Real quick here before I head to bed I have a momentum play you may find of interest, Alpha Natural Resources (ANR). The stock is in my current favorite group, Alternative Energy which as you readers know has treated me well (LDK stock anyone?).

Place your stop limit buy order at $74.10 and if it hits look for a quick move to $78 – $80. With my trading rules a stop no greater then 2% will work. This play is good for the week, and if it doesn’t hit move onto the next one .

For those who track me on Covestor you know I’ve already taken a position in the stock today. I have an order to add to my position with the break of $74. My current stop is $71.85.

UPDATE 9:39 AM EST: I just got knocked out of ANR at $72.29, premature buying can bite ya sometimes. Should have waited for the true break @ $74. Total loss 1.19%.

The first fact is that oil is continuing to climb, and as long as demand exceeds supply it will climb further. The dollar “strengthening” has done nothing to stop supply and demand. The second fact is that as oil continues to climb more and more focus on the side is being put on Alternative Energy, who for those that follow this blog know it has been quite the trend.

Stocks like SOLF and CSIQ have surged recently in price, and as it turned out LDK was next in line. Take a look at this chart to see the recent move of this play solar technology:

Click for Full View

Bought LDK @ $38.61 on 5/19/08

Sold LDK @ $43.97 on 5/21/08

Total Return = $5.36, or 13.88%

To end this post I have great clip everyone should watch which is a interview with Boone Pickens,

Boone Pickens on Alternative Energy (hat tip to Dan Zanger)

After this trade I am now 100% cash, and if it weren’t for trade clearance I would be in QID right now, oh well .