Wednesday, June 18, 2008

Wicked Volatile

I covered some financial shorts early before they rallied. I was lucky. I shorted MS pre open and covered for a point and a half within the first half hour. UYG, WB and LEH were covered from yesterday basically at the lows of the day. FDX started the day off with a bad number and a gloomy outlook. This is a company that is quite a tell for how the economy is doing. I caught CHK for a beautiful trade before it decided to roll over with the rest of the sector until it strengthened later in the day. I caught a little name, ABAT, from $5 to 5.50. The chart was amazing until it gave up the ghost in the afternoon. I will be watching this one in the days to come. If it can get through $5.70 with volume it should explode. It' s a China name that makes batteries. I know, the hair is up on your neck from the excitement. Oil went away near the high of the day and the financials tried their best to rally. The only reason I covered the financials was because I caught the gift of a bad open. I still think they go lower. The XLF breached the March low that I have been watching for weeks but quickly recovered. The DOW also broke 12000 for a short period. All in, it's hard to be bullish right here. It really is all about the oil bubble popping, and when it does we will see a rally of enormous strength. The question is when? Stay liquid so you can play when it does.

PS The steel stocks came on strong at the end and I caught AKS for 2 pts. I forgot about that one. I almost took it home but it's not the take home market for longs yet. Keep an eye on it though.


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.