Monday, July 13, 2009

Bookkeeping: Short Longtop Financial (LFT)

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

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