The Financial Saga Continues....

I haven't posted in the last couple days because I have been swamped at work but it can be summed up really quick.

The dollar rally results in a commodity crash. Dollar is rallying because of relative weakness of other countries. As oil crashes, the financial and the Dow have been rallying. On top of that, Jim Cramer thinks that we have hit a bottom on July 15th. I think we need to retest that low to be sure-this is not the time to buy. I will never buy into a rally this strong.

The market is telling me the financials are going down again. After a couple days of the super squeeze, the financials have failed to make new lows. Now, the golden boys, Goldman Sachs (GS) and J.P. Morgan (JPM) have been downgraded big by some of the biggest names on Wall Street.

I think that Wachovia (WB) is the stock that has over-rallied most.

The Financial UltraShort (SKF) is up 9.60% at the moment to $121.30

With the fallout of commodities, solar names have taken a hit too.

First Solar (FSLR) is down to $250.17, about $50 lower since my short call.

Quanta Services (PWR), Trinity Energy (TRN), Zoltek (ZOLT), and SPX Corp (SPW) have all been hit very hard by the solar fallout the results from the Crude Oil plunge. However, crude oil may be closer to a bottom than the top right now. The oil stocks have lead the commodity down, however, the stocks have been flatish last couple of days. Nonetheless, we now have a real top in Oil ($148-150).

Luckily, this commodity bust has caused a retail rally. Home Depot (HD - my first call for this blog) has called almost 35% from its low. Currently trading at $27.60. Another powerhouse I want to mention is Wal-Mart (WMT), which reported "disappointing" same-store-sales recently and taken a hit. The stock had fallen from its 52-week high and that was the perfect buying opportunity. It has already recovered from that large down day.

Lastly, I want to talk about infrastructure. These stocks have probably been some of the most hard hit stocks in the S&P 500. McDermott (MDR) is down about 15% after earnings, while Foster Wheeler (FWLT) and Flour (FLR) are near 52-week lows. These companies do much more than petrochemical projects and many projects are based off of $70-90 oil. These NEED to be bought- they are just too cheap at these levels.