Be careful what you ask for, you just might get it. I guess that’s what some are saying this morning as the futures slide because people aren’t happy with the bailout plan. For the second session in a row my broker has no SPY nor QQQQ to borrow. I’ve never seen that situation before. Perhaps that’s because people have loaded up on those since they can’t short financials. Whatever the reason it’s a crowded trade right now.
On Today’s Calendar:
- nothing
More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic
Potential swing trades:
See one of the recent ‘Chart Reading‘ posts for some potential swing candidates. Also be sure to check my typical swing trade entry & exit rules.
Potential day trades:
(From Briefing.com)
Gapping Down
In reaction to disappointing earnings/guidance: XING -20.1%, CALM -15.6%, WAG -3.8%… Select financial related names showing weakness: WB -90.3% (Citigroup to acquire banking operations of Wachovia), NCC -25.9%, RBS -21.6% (tumbles in the UK because of its perceived links to the stricken European bank Fortis – Guardian Unlimited), CORS -20.0%, AIB -19.6%, LYG -18.9%, UBS -14.9%, CS -13.7%, AEG -11.4% (has EUR125 mln gross exposure to Washington Mutual – DJ), ING -11.1%, IBN -10.9%, MS -9.1%, C -5.2% (Citigroup to acquire banking operations of Wachovia), JPM -5.2%, WFC -3.8%, GS -3.6%, AIG -3.5% (will issue a new series of Convertible Participating Serial Preferred Stock, FT reports AIG looks to sell 15 units), ABK -2.9%, BAC -2.9%… Select oil/gas names stocks showing weakness with crude lower: BP -5.8%, RDS.A -5.6%, TOT -5.6%… Select mining names trading lower: MT -8.6%, BHP -8.1%, RTP -7.7%, RIO -5.0%… Other news: NOK -6.3% (still checking for anything specific), LLY -3.9% (announced the FDA did not complete its review for the prasugrel new drug application)… Analyst comments: AAPL -6.2% (downgraded to Equal Weight at Morgan Stanley and downgraded to Sector Perform at RBC), FCX -4.7% (downgraded to Hold from Buy at Deutsche Securities), CDE -4.5% (downgraded to Sell from Hold at Deutsche Securities).
Gapping Up
Select airlines showing strength with crude lower: LCC +4.9%, UAUA +4.7%, DAL +3.8%, CAL +3.0%… Other news: FNM +20.8% and FRE +12.5% (showing strength with progress on the $700 bln troubled asset agreement), PPC +9.9% (announces definitive written agreement with lenders on temporary covenant waiver), IMCL +4.1% (may have talks to announce – WSJ).
Disclaimer & How I use this list
Might I tempt you with some futures? The ES has great liquidity.
My broker had no QQQQ at the end of last week, and I received numerous emails from others having the same problem. Most did not know it was possible not to be able to short QQQQ.
I agree with the poster above…except the NQ!