SOLD -11 SKF @105.84

SKF

Sold my SKF from a cost basis of $102.60 from yesterday (fee $5). The ETF still seem poised to go higher in the near term. However, since I’ll be off to Taiwan for a few days, I don’t want to leave the position unattended as it is highly volatile. Ideally, I’d like to wait for the price to reach at least $110 or later in the week to sell it. Still, I am satisfied with my small gain and would not risk more for a little gain (I considered placing a limit sell at $110).

I still believe SKF has a lot of potential for a much higher price in the coming weeks to about > $120 based on the fundamentals (i.e. the laughable spin by the media on Buffett’s deal with Goldman Sach) and technicals.

BOUGHT +11 SKF @102.60

SKF

I’m back in SKF today after an exit about an hour ago. Price broke $103 for a few minutes then backed down. Upon further analysis, I think the Paulson plan wouldn’t pump the financials, at least for now. It would be too obvious and not profitable for the traders. A better scenario would be a big drop to shake everyone off, then a rocket up to lure in the chasers.

Stop: Working trailing stop order of -$8.0 on Marked Price.

SOLD -10 SKF @102.51

SKF

Sold all my SKF for a tiny profit from $96.70 entry (fee $5). Congress is discussing a $700 billion rescue plan for the financials. The drop of financials in the past two days seem to be more of a setup for Paulson to sell his plan. The volume on SKF has been very low for the recent rise in price. Also, after Paulson’s proposal, SKF seem to be reaching a resistance at $102.50. I will wait and see how it goes, as there’s a lot of downside risk on SKF at the moment.

BOUGHT +10 SKF @96.70

SKF

Upside: MACD, Stochastic, and Money Flow positive divergence on last Friday’s low. Also, with recent ban on shorting financials, SKF is one of the few places for shorting financials. Basic supply and demand means an upside outlook on its price.

Resistance: Round number $100. Then congestion at around $110.

Downside: Recent ban of short-selling is creating a lot of uncertainty in inverse ETF’s. This is a major concern in this position. Thus I’ve only entered a small position and used a hard stop into the system instead of using a psychological one just to be safer while I’m away.

Support: Last Friday’s low of $87.

Target: $110

Stop: Working order at $83