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:

1. Lower my exposure considerably
2. XLF (financial index) failed to break the strong support level

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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
Tim quoted:

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???????