Friday, June 20, 2008

Play What You See

For me that is staying short the financials and long energy. I've been a broken record on the technical break on the XLF. Technically speaking, when these types of breaks occur, the best you can hope for is a temporary dead cat bounce. All the negatives don't erase themselves overnight. That means lower prices ahead. However, I did catch the short squeeze in STI. I was short and long this name a couple times today and mainly short yesterday. You get to recognize a pattern in a stock when you trade it a lot over a couple of day period. I was short and it just would not go down. It pulled the same thing yesterday and rallied big time. So I go long, put in a stop, and went to look for new office space. I came back and it had exploded.They announced guidance and killed the rumor that they were going to cut the dividend. There was, and is, a ton short in this name, I was one of them, and it just popped. In my opinion this is such a tell on what these financials will do when they actually turn. It was luck, but you know how I feel about luck. I also caught a mini parabolic move on IPI. I'm just trying to play what is working and I have been glued to the new daily high/ low list on my screen as I find it an invaluable tool in this market for watching money flow. New highs continue to make new highs and new lows continue to make new lows. You can take that to the bank.

Still amazed at how well, relativly speaking, X acts. I was looking at AKS and STLD but never got around to pulling the trigger.

Grilling some chow and sipping Coronas this weekend. Stay smart and don't buy the pundits.


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.