Bookkeeping: Getting back BHP Billiton (BHP) Sold Yesterday

One of the sell stops I had put in yesterday was on BHP Billiton (BHP) which locked in at $58.60... at which time I wrote

Due to the extreme slope of this chart, along with the 2 "gaps" I had almost my entire position for sale at that price, so I only have a 0.1% stake left. I have a buy to refill part of this position at $55 or the bottom of the lower gap. If that successfully works, it would lower the cost basis by 6%. $54 is the 20 day moving average which is where strong charts will usually go on corrections.

Both gaps have now been filled in the past 24 hours so my limit order to get my shares back at $55 hit (current $54.75), allowing me to both lock in the profit and then lower my cost basis by 6%. Hoping to see $54 to add some more.

I almost was able to pull the exact same trick with Skyworks Solutions (SWKS) - my target to rebuy was $9.25, and it fell to $9.30 yesterday after I exited at $9.75. This morning it is back to $9.79... missed it by *that* much.

I'm still wary this market is set for a larger fall but until I see a breakdown of the 20 day moving average on the S&P 500, I will operate in a parallel world of Kool Aid. We continue to see these massive surges in the last 5-10 minutes of the day that only cause those who try to short a lot of pain.

For now we just have the same trade that was hot in late 07 and first half 08 with 1 caveat: technology is a parallel bull market. When oil is up, and dollar is down buy anything emerging markets or commodities (or technology). When oil is down or dollar is up, we sell off. So we're hostage to "reflation". As simple as that.

I will repeat what I've been saying for a few weeks; just like higher yields were initially seen as "good" but now are causing people to hand wring because it puts a hole in the "let Americans refinance their homes so they can shop" so will higher commodity prices eventually transform from "a sign of coming strength" to "a headwind". When? I have no idea.

If you missed my edit yesterday on the last post of the day, on MEMORIAL DAY WEEKEND, Gas at upper $2s caused this -

• Gasoline consumption slipped 518,000 barrels to 9.02 million, the biggest decline since January 2005.

....the American consumer cannot take these higher prices; no matter what CNBC pundits tell you. But until the market chooses to acknowledge this it can run off in some ivory tower bull market thesis indefinitely.

Long both names mentioned in fund; no personal position