Monday, February 9, 2009

Bookkeeping: Short Volcano (VOLC) & Mobile Telesystems (MBT)

Two of my limit orders from a while back have hit this morning.

First, we are going back to the Volcano (VOLC) for a 2nd sip... [Jan 13: Short Volcano] Now this is a more typical chart for me to short... my limit order was set at $14.60; the 200 day moving average is $14.75. (I added a bit more short in the $14.40s once I saw the limit order go off) The stock gapped up this morning on an upgrade - nothing else to see here. I will see if I can cover somewhere in the $13-$13.25 area (+10%) and I'll stop loss just over $15.00 (-3%)\

This is a 2.5% stake

Second, I am short Mobile Telesystems (MBT) as a lower risk way to play all things commodities; its a Russian telecommunication company. The funny thing about the market is when commodities surge every company - no matter what they do - in countries that are dependent on commodities also surge. Frankly it is frustrating to see an internet based company, or home builder, or telephone company in these countries live and die based off the price of commodities but this is the way of HAL9000. Russia is now hot again because it's part of the BRIC countries which are the flavor of the week. I think Russia is in serious trouble unless crude gets back to $60+ and stays there.

I set this order a while back and had a $24.00 entry price - I could not give you a good reason why today; I would of preferred $26 so we'll see with this one. I have so many things on my watch list that I have open limit orders sitting out there to catch things since I cannot watch all the time; and this happened to be one - but the price is a head scratcher. I'll stop loss out north of $26ish; have to re-assess this chart for price target since it's a very volatile name but as you can see it was $18s just a few days ago.

This is a 2.4% stake

Short both names mentioned in fund; no personal position

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