I covered the last of my shorts yesterday, so I’m back in cash where I’ll probably stay until next week. One interesting thing I noticed while flipping through my scans is that all of a sudden oil stocks are strong again. They’ve almost been moving opposite the commodity over the last few weeks. If somebody can explain the relationship between the two please do.
Currently holding:
Long – None
Short – None
Looking for swing trade entries in:
Longs – CCBI, DITC, DKS, MATK, MBT, MDCC, UTHR, VIP, WBSN
Shorts – CYMI, MACR, SHRP
Potential day trades:
(From Briefing.com)
Gapping Down
OTEX -18% (reports JunQ; to acquire Vista Plus product suite), FITB -6.5% (Morgan Stanley downgrade), FRX -4.6% (announces that Neramexane did not demonstrate statistical significance in Phase III trial; removed from JP Morgan’s Focus List), BSX -2.7% (provides Taxus update, guides lower)…. Under $3: ZTEL -12% (faces delisting).
Gapping Up
SUPG +21% (gets $40 mln MGI Pharma equity investment; First Albany upgrade), COCO +11% (reports JunQ), IDNX +8.7% (SunTrust upgrade, $8 tgt), PKS +6.6% (Bill Gates joins call for better performance – WSJ), SWIR +5.4% (reaffirms guidance), OXGN +5.1%, IPAS +3.2%… Under $3: GNVC +6% (enters agreement with USDA for foot and mouth disease).
Trader Mike,
one of the reasons for the sell off (I have heard) in the Oil stocks when the Oil price was rising and the corresponding gain in the stocks as the oil price was falling was due to the declining Crack spreads. Crack spreads are in fact the efficiency of producing usable oil from crude – almost the equivalent to an operating margin. Because the latest oil spike corresponded with declining spreads the companies sold off. And as was the case with BP (in US Dollars) it actually hit oversold levels RSI of 32 and outside it lower Bollinger band. This created the latest run in these stocks…..
Thanks Dan. I’ve never liked messing with oil stocks just because of stuff like that and b/c there always seems to be some report released mid-day that causes havoc.