Critical Level For Financials
Sold my SKF stock position in the morning pop up and replaced with a very small position of SKF call option (1 contract).
I sold SKF because I don’t feel comfortable holding it in this bull rally. I bought the call option however for two reasons:
- Lower my exposure considerably
- XLF (financial index) failed to break the strong support level
Tomorrows Alcoa earnings report may impact the mood of the market, but seeing the late afternoon rally by the bulls today, the bullishness is still all over the place. I don’t know which way it will go yet, but if XLF breaks through the support, I’m ready to go bull on financials short term.
Tim Sykes Challenge DAY8 – CENX
CENX has surged from $2 to $4ish on huuuuge daily volume of 10 million+ shares, potential short for sure, nice and liquid!
Looking at the watchlist he sent last night, I eyed on CENX this morning. Sure enough it looks like the shorts have shown interest. However, trying to short the stock today, I got blocked by my broker “Scottrade” since the security was under $5. WTF!! I thought that was just a temporary thing…I think Scottrade made its own policy to restrict shorting on stocks under $5. Guess I gotta call Scottrade to see what’s going on.
What was the result? Sure enough, the stock tanked pretty good. Man I could have a few hundred bucks here easily. Should I still be shorting here Tim???????