I posted this chart of FAZ on the weekend newsletter, every time it has seen this level it has been a huge win for the bulls on the stock (bears on the sector). Click on the chart, for my thoughts, but I have not given up on the name, I pulled a total of about 5 points out of it today and it continues to be the gift that keeps on giving for me. Discount FAZZY at your own peril.
American Express had a nice rally going today, I was lucky enough to short it near the high of the day, covered for a nice gain and then re-shorted on their write-off announcement. AXP reminds me of GE at $12 about six weeks ago, eerily similar actually on a few fronts. I made 50% on GE short in a month. We'll see.
Alcoa cut their dividend after the close, I didn't know they had sub prime too. Seriously though, it just validates the destruction of the global economy,and in my opinion it gets worse. This may have been a disappointing day for the Pollyanna's but in no way does today's action mean the end of the rally, the close was bearish, but the rally is still in tact.
It's hard to make a directional call after a one day pullback, but a few more and we will break to the downside.
Monday, March 16, 2009
American Express, Alcoa and Profit Taking
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About Me
- upsidetrader
- 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.
2 comments:
AA needs cash to survive the downturn in economy. It seems they have to sell stocks at depressed price to generate cash.
How can anyone apply technical analysis to these ultra ETFs other than on an intraday basis given their nature?
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