So much for the idea of these stocks going straight to the first target price level. The large gap up in stock prices this morning was just too easy of money to make so investors sold at the open.
The stocks listed in last night’s report, which was a review of the last week had percentage gains as high as 50% to 124% (HIG) from last Friday’s low to this morning’s opening price. No doubt that the hedge funds that specialize emphasize short selling sold into this rally. The short selling hedgies have a lot of power now because they took equity away from the other mutual funds that are primarily long and. Since they have more buying power, they control the market right now.
These stocks listed below have come down so much today it looks like they have limited downside tomorrow and I’d be looking to buy these stocks long again with the idea of holding them as an intermediate term position. The market has not rewarded positions that are held for weeks unless they are on the short side but the market should start to settle down and stabilize through time.
AGU, Agrium
MOS, Mosaic
POT, Potash
FCL, Foundation Coal
ACI, Arch Coal
CNX, Consol Energy
MEE, Massey Energy
*TCK, Teck Cominco
FCX, Freeport McMoran
X, US Steel
CLF, Cleveland Cliffs
You won’t be seeing a fast sharp rise with these stocks like we just saw in the last 3 trading sessions. It is likely to be a process of these stocks moving up in a general direction with some days up and some days down but generally moving up.
Note that the insurance group stocks, HIG, PRU and to a lesser extent MET are holding up well but PRU, Prudential looks like a shortable stock for the aggressive trader.
Look for clear buy and sell signals using various chart settings like the 3 minute 1 day chart for intraday trades of the 15 minute 5 day setting for a swing trade.
The S&P Futures are down tonight indicating the Dow Jones will open down tomorrow about 100 points. The Asian markets are down a little but that is to be expected considering the Japanese market had a record up day of 14.2% in a single day. So I am looking for a down open and a sell off in stocks to a lesser extent than we saw this morning at the open, followed by a strong reversal to the upside. |
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