SOLF...20 bucks+ ...
Another opportunity missed. I played it safe and wanted to wait for a pullback. Oh well, sometimes it is better safe than sorry. And plus who knows maybe it will selloff later this afternoon. I will still be paying close attention to it
USO short is not profitable again...Goldman predicting 140 oil...herd mentality?
Let's see what happens later today.
-DL
Update 1:
Wow SOLF is up 16% today!!! I am slapping myself over and over right now for spotting an opportunity but did not execute my plan. This lesson reinforces the consequences of inaction. Oh well, let's keep an eye out for it. SOLF is actually due out next week for earnings. Given the massive run up we are seeing in the stock, could we be setting up for a sell the news plunge after the report? Let's do our homework this weekend for SOLF.
Markets are pretty much finishing flat. It is still my belief though that we will see another potential leg down. Perhaps this will happen after the option ex (which is today). So be careful and don't get too bullish. When I am watching the business channels now all I see are people being bullish. The Call/Put ratio is absurdely skewed toward the call side (over 3 to 1). So when the sentiment gets this bullish, as smart traders we have to anticipate the moves to come. It is not the time to chase.
Hope the trading week has treated everyone well. I am going to the AMA superbike races this weekend (I am insanely obsessed with motorsports). Enjoy the weekend. When the new week starts, let's keep our eyes open for the big opportunities!
-DL
Disclosure:
Long V, GOOG
Short USO
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3 comments:
Its amazing how commodity/energy stocks keep moving up. I've watched NUE/MDR/CHK for a while now, waiting for a larger correction (saw one with MDR, unfortunately i didn't take advantage), but every dip is really just a buying opportunity it seems.
disclosure: currently long NUE and CHK.
Yes most definitely, I have been a non believer in that sector as well but I have been missing out bigtime. Good call on getting long NUE and CHK I might have to get in one some of those too. What are your targets for the stocks? Are you just trading it or planning on keeping for the long haul?
I guess with the general market still unsure of itself, the safest play seems to be basic material/energy. I think once the economy turns up, we may see a strong sell off in these. We saw a preview of this after the rate cut. But these sectors quickly rebounded. I'm curious to see what overall affects the rebates will have.
NUE i think could hit $110. Seeing X fly so high has me a bit concerned on the sector. I like CHK. I expect $85+ by year end. Low beta, institutions slowly creeping in, and natural gas with solid growth prospects. CHKs prez has been accumulating on open market, and said it could double (on cnbc interview)
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