Thursday, September 4, 2008

Trade Alert: SKF

The financials are going down like a sinking ship the only question is how long the plunge protection team can keep any part of it above the water. As bad as the financials have sunk plungers have mounted some impressive rallies especially one before the Olympics, which attempted to bailout, Freddie and Fannie. A lot of shorts that squeeze when the last time that happened and we stopped out of our short positions on Deutsche Bank and HPC with small profits.

The point is, instead of taking a short positions. I believe a good way to ride the financials down is to take the SKF, up. The index seems to have bounced off of support, roughly in the $110 area where it closed last night, This morning it is trading at about $115. It would have been beautiful and caught the bounce off the $110. But unfortunately it gapped up on strong volume. Now I want to see it break $115 in the 15 minute chart which would indicate a possible change of direction.

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