Monday, May 26, 2008

Back To Business

I hope everyone had a relaxing weekend. I found more shorts than longs this weekend and that seems to be a recurring trend with me lately. The market ended the week on a very weak note. On Friday Up/Down volume was about 5 to 1 on the NYSE, and the NAZZ was about 3 to 1 negative. The indices broke down last week with with the NDX holding secondary support around 1950 but the SPX broke below a key level at 1383. Cause for extreme panic? No way, but be aware. I am short XOM and UYG going into the open. The financials look like they could bounce even though I think the group goes lower. I would like some weakness in the group early tomorrow so I can maybe get ready for a long side bounce. There was a decent read in Barrons this weekend where Sy Jacobs of JAM Partners was interviewed. He has been very right for a while on the collapse in the financials and is calling for much more pain ahead. This time it's commercial lending. I don't like the group, but all things are a trade at some point. Take a look at the chart of LEH. It looks like a good short around $35. It should be interesting and I think we may muster a rally but I am ready to go either way. Oil as usual will set the tone


About Me

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I am a former hedge fund manager, broker and capital markets dude who now trades for his own account. I love what I do. I will try to post some stocks and an occasional chart that looks attractive for entry.I will also try to point out the idiocy of conventional wisdom and the lack of value added by the mainstream financial media. These postings should not be viewed as recommendations.