Last week, there weren't many stocks with upside potential. Despite the rather pessimistic outlook, I took a gamble on the news recommending Clearwire Corp. (CLWR). Monday the stock opened at $2.78 a share. After a large run-up through Thursday, CLWR took a 2% hit on Friday. However, the week would have yielded ~ 15% .
This week will be rather volatile again. One company I'm eyeing is Dendreon Corp. (DNDN) After a large 67% drop in one day, the stock continued to fall to near $9. The stock than ran up to over $13, just to retreat again to the $11 mark. I think Tuesday could be another bearish day on this stock, but I would recommend this stock around the $10.50 point.
Other than that, I would be watching the Financial Industry and be very very ultra short on this sector this week. Ever since 2008 political rhetoric and the banking industry are negatively correlated.
Also, expect some weakness in the energy commodities (oil, nat gas, heating) and the energy sector may also dip over the week.
One final recommendation, play the volatility this week. Look at picking up some of the VIX index. One ETF I like is the short-term notes, try VIIX. Expect a run up over just this week. And sell-off at some point Friday. Next week is gonna be hard for most VIX measures to maintain at current levels.
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