Tomorrow should set the pace for the next few days. Traders have been waiting for the job numbers for weeks and I think they will be bad. How we react to the number is key! If numbers are terrible and we rally that will give the bulls ammunition that the market is ready for a sustainable rally as it has discounted all the bad news. Conversely if we drop on the numbers the bears will have the fuel to push us down, saying the recession is taking full hold on the economy and there is more to come. Whichever way it comes we will play it, as we are traders. Right now I am only have a few options and 2 very small positions I am currently building.
We must take is slow and easy here as the market will take you out if you are wrong.
Don't worry we only call winners here. PERIOD.
Thursday, April 3, 2008
Building up a position
I might be early on this but I have started building up positions in the following slowly and will manage them as I think they will prove profitable. Why I am also playing the stocks than the options on these? Well the option pricing is just way too expensive.
Again I have just started to scale into these 2 positions today.
1) FNM -short. What can I say. The housing crisis has just started and FNM and Freddie mac will be teenager stocks before it is all done. I think 100% it could be $12 this year in my opinion. Started to short today @30.80 and will add short to this position if it climbs.
2)SKF -long. Readers know I love this badly. I mean really love this play. I purchased a small bit today at 100.6 and will add over the next few weeks if it goes lower. I think the dust is far from being settled with the banks and brokers. I might be wrong but I will take it here.
Again I have just started to scale into these 2 positions today.
1) FNM -short. What can I say. The housing crisis has just started and FNM and Freddie mac will be teenager stocks before it is all done. I think 100% it could be $12 this year in my opinion. Started to short today @30.80 and will add short to this position if it climbs.
2)SKF -long. Readers know I love this badly. I mean really love this play. I purchased a small bit today at 100.6 and will add over the next few weeks if it goes lower. I think the dust is far from being settled with the banks and brokers. I might be wrong but I will take it here.
SKF
I firmly believes this sees new highs this YEAR. We aren't out of the wood my any stretch of the imagination. Bumpy road ahead and path of least resistance will be down. I am building short positions here as I still think the bulls will try to push us higher
Job Numbers
Job Numbers just came out and they were terrible. Jobless claims are over 400k and with the upcoming wall street and banking layoff scheduled the number will continue to rise. This is bad and have to be looked at carefully as it seems unemployment is on the rise
Subscribe to:
Posts (Atom)
