Friday, April 03, 2009

Bulls power over the bears

The markets gapped up in the morning and continued moving up until the afternoon until what looked like there might be a sell off. The markets tried to push through 845 on the S&P and when failed seesawed in to the close. A mild sell off in to the close about 15 minutes before close.

A rather tough day for me. I held small positions on two ultra shorts overnight and they both gapped down after the announcement that Mark to market accounting was going to be eased. SKF and SRS. I managed to half my losses in SKF by doubling down on dips. With SRS however I was not as lucky as it kept falling losing 9% when I had to cut my losses. SKF had resistance as financial firms tried to sell off.

On a day when financials are the reasons the market is up. The financials themselves sold off which everything else powered up.

On a brighter note. I sold my GOLD in KGC and AU just before market close the day before. I noticed weak volume in the GDX as it reached the top of the recent trading channel. This morning, GDX sold off hard to the bottom on that very channel where I picked up my shares in KGC and AU again. 

After market, RIMM announced earnings and it was better than expected. The shares powered to $60 after market. I think this is way over done and suspect RIMM may have 'stuffed the channel' with products. They have also been aggressively pushing products such as the CURVE for free with contract. I am going to start a short on RIMM when markets re open.

No comments: