We finally got the oversold bounce and its hitting the lower end of the range we discussed this morning. If the bounce continues we'll be stopped out of this position but I'm going to put a short, low risk entry in Longtop Financial (LFT). This will be about a 3.3% stake and starts at $24.30. The high of the day is $24.50 which just so happens to be where multiple resistance lines sit.
Since almost all stocks are hostages to the greater market nowadays, if we continue to bounce I expect these resistances to be sliced through and I'll stop out at $24.75. That's only 2% from here - so a low risk play. Downside obviously can go to $22s very easily in this volatile name.
I also covered some Las Vegas Sands (LVS) for a quick (2 day) 8-9%.
Short Longtop Financial, Las Vegas Sands in fund; no personal position
Monday, July 13, 2009
Bookkeeping: Short Longtop Financial (LFT)
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows