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VIDEOCollaring Energy Names for Big Gains?
By
Fil Zucchi
May 13, 2009 1:35 pm
Weatherford, et al. may be set to move.
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- My restaurant shorts have turned rather tasty, and I am s-l-o-o-o-o-w-l-y covering and selling puts against them.
The Euro is at major resistance against the USD and today it has perfected a DeMark Sell Setup. I continue to think that currencies are being deliberately debased the world around, as all governments print money to make up for lost wealth. I view out sized strength or weakness of the USD versus non-commodity reliant currencies (Aussie and Canadian dollars) as good trading opportunities.- Energy names have been very strong and putting collars (buying puts / selling calls) around names like Weatherford (WFT) make a fair amount of sense for my book.
- Undisciplined perhaps and stubborn for sure, but I continue to see no reason why the REITs performances - and by implication their stocks - are not train wreck in the making. The most likely catalyst remains the moment of recognition that many many many of the properties they purchased at stupid prices over the last 5 years are upside-down in value.
- Incidentally, that moment of recognition will come when properties start getting liquidated. forcibly or otherwise. That's when you may want to keep an eye on names like HFF Inc. (HF) and Jones Lang LaSalle (JLL) - brokers don't need clients to make money, they just need buyers and sellers.
Big Blue (IBM) just tried to tell the Street that its business is humming just fine... and the market yawned. That's a very different reaction from what we have seen during the latest rally.- Rumors of a Dendreon (DNDN) / Astra-Zeneca (AZN) partnership begin percolating approximately 10 minutes before the wires report that DNDN closed its secondary at $19.20. Memo to the Street: if you do not want the SEC crawling up your every orifice, this is the kind of stuff that's gotta stop. Otherwise quit whining.
Positions in Euro, DNDN, IYR, SRS, restaurant names
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