Short post. No time for anything fancy before Non-farm Payrolls…
Coal stocks as represented by the Market Vectors Coal ETF (KOL) got smashed yesterday. When an index drops 10% in a single day off record all time highs on record volume, you can assume a major top has been put in.
It all happened so fast I couldn’t get into the rest of my short position and will have to add on a bounce back just short of $57.00 area. A clean move above $61.00 would make me nervous and would be a clear sign of danger. While I would trade some of the position, the main profit objective is in the $44 - $46 area.
Coal stocks as represented by the Market Vectors Coal ETF (KOL) got smashed yesterday. When an index drops 10% in a single day off record all time highs on record volume, you can assume a major top has been put in.
It all happened so fast I couldn’t get into the rest of my short position and will have to add on a bounce back just short of $57.00 area. A clean move above $61.00 would make me nervous and would be a clear sign of danger. While I would trade some of the position, the main profit objective is in the $44 - $46 area.
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1 comments:
Ben,
Regarding the FNM/FRE call ( http://benbittrolff.blogspot.com/2008/06/mbia-and-ambac-are-dead-fannie-mae-and.html ), is FRE's breakdown today below 16 a momentum short opportunity or better to wait until retracement to 19-20? VIX is still floating mid-20's, so a sell-off despite oversold indicators might still be in the cards.
That, plus the GSE's being leveraged to the hilt and your long-term single digit call looks safe.
-Mike J
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