We had two names on our top holdings list that we reviewed yesterday morning that I was torn on,
James River Coal (JRCC) was one. The stock has drifted back up into resistance after breaking through - but it is a hostage to the 'reflation' trade which has been MIA this week. This is the type of set up I like to short since your stop loss is just overhead and if it works against you, you are out with a very small loss, but since every commodity stock trades in monolith the chart won't matter much if reflation emerges again next week as the sexy theme, and healthcare is tossed aside.
Next week is "mark up" week where the quarter end arrives and stocks have a "random" habit of jumped in the 2-3 days ahead of the quarter end. So there is a good chance JRCC and all the hot trades of the quarter jump together; as long as JRCC holds $17 it should be ok... that said there is a yawning gap in the chart down there in the low $15s and I don't want to take the losses. This chart could go either way and there are easier set ups until it makes up its mind. I am going to cut back to
0.6% stake right around $18.
Long James River Coal in fund; no personal position
Next week is "mark up" week where the quarter end arrives and stocks have a "random" habit of jumped in the 2-3 days ahead of the quarter end. So there is a good chance JRCC and all the hot trades of the quarter jump together; as long as JRCC holds $17 it should be ok... that said there is a yawning gap in the chart down there in the low $15s and I don't want to take the losses. This chart could go either way and there are easier set ups until it makes up its mind. I am going to cut back to 0.6% stake right around $18.
