May 9, 2008 4:44PM

The Big 3: Look out for Gravity, is Fed Ex Next, and Trade in and out

By Cody Willard

Here’s what I was spinning on my finger when I wasn’t spinning a basketball today:

1. Oil Below $100 One Way or Another
2. Fed Ex Delivers More Caution
3. A Trade is a Trade is a Trade

1. Oil, Oil, Oil. I see and hear a lot of oil bears giving up their shorts and even thinking about getting long oil again. Don’t make a stand, but I sure like the set up of being short oil in these $120 levels, as I do expect oil’s gonna be back below $100 soon, if only out of a volatility move.

2. Fed Ex cut guidance after hours, and as we’ve been discussing all week, it shouldn’t surprise anyone that the consumer continues to struggle after years of carrying this economy. What’s really worrisome about the Fed Ex update is that they’re getting to be serial warners and they even say in their warning today that if oil goes up or the economy weakens at all, they’ll have to cut guidance again.
3. NVDA was up nicely this morning after its report, though the stock faded and ended up only 2% on the day. I mentioned this one as a trade into earnings earlier this week. That catalyst has come and gone now. I told readers on CodyWillard.com today to close out part of the trade. A trade is a trade is a trade.

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