We are seeing a lot of examples of crowded trades reversing here in the past week. This group is so overhyped - I am still debating going short ITT Education (ESI) here at $108 now that it's broken support. Who exactly other than "federal government" is going to be funding the adult education. Sorry, I just don't buy this Kool Aid. As I
wrote this morningThe "adult education" names continue to hang around although that is becoming one crowded trade.
There's a couple others in this sector but you get the point - this is when momentum goes bad... rats jump ship. Last rat turn off the lights....
Have I mentioned buy and hold is dead? Almost every stock - even Walmart (WMT) gives back gains nowadays.
6 comments:
I've been watching this sector for a few days. I really wanted to short ESI, but thought for sure there would be a rebound to start from. I had actually planned to do it today, but did not plan on it collapsing. So I'm stuck at the moment, like you. Still hoping it will get back to 114 or so. I read somewhere else that hedge funds may be rolling out of this space.
I missed it too
wasnt watching the sector closely but at some point this trade was going to blow up. I heard some people talking about APOL yesterday but I did not follow up.
Working on cloning myself so these opportunities don't get left behind in the future ;)
Wasn't sure if you have seen this site, but haven't seen it mentioned here.
http://acrossthecurve.com/
Best site out there for fixed income. Unbelievably helpful day to day.
Hi Colin
I've stumbled upon it from time to time and been quite impressed
Finding the time to read it is another issue altogether. Again, working on the cloning... once solved I can start reading other people's blogs again ;)
There's a new thesis in the wild west.... get your guns out.
... SWHC
.... RGR
..... CAB
Mark, what say you? http://blogs.moneycentral.msn.com/topstocks/archive/2009/02/25/fear-of-obama-drives-gun-stocks-higher.aspx
I'm already on that one - SWHC jumping even with gun recall. Can't pull the wool over my eyes on floozy thesis'!
There was actually a bullet shortage in a Tampa paper about 2 weeks ago.
I don't really chase something up 50% but these could be the news DryShips!
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