Tuesday, November 25, 2008
Trade Alert: SKF
Yesterday I got into the SKF with 25 shares at 200.00 and was promptly stopped out at 180.00 as they rallied the market on the Citigroup news. You have not heard the last of this BTW. Citi is a huge SIV in dressed in drag as a bank and that bailout is just beginning, won't end in our lifetimes, but i digress.
Anyway what I'm looking at as I try to pick a reentry point on SKF is IYR and you can see from the daily chart that it is holding above 30.00 and that long down trend could arguably be broken, sounds weird I know, you can see what you can see and that's what I see. The buying volume is huge. Going into the hoilyday weekend I expect to see a pull back in the IYR. I will not consider going back into the SKF unless IYR is at least under 30 and will ad to it if the IYR continues to fall attaining a full position if it breaks the 52 week low of 23.00.
As for the SKF itself I had a comment posted on a previous trade that technical analysis does not matter for this ETF. I agree, but if it did you can see it coming down to the zone occupied by both the 100 dma and 200 dma, that is strong support.