Wednesday, October 6, 2010

Bookkeeping: Closing Maidenform Brands (MFB)

The cloud computing / momo plays that were hammered earlier today took another leg down of 3-5% across the board in the past hour and now many are in double digit loss areas.  These names have squeezed out any rationale short player the past few weeks, so once they turn all they have is vapor below them and the drops are dramatic.  So what I warned a few weeks ago might happen in earnings season, actually has started today due to EQIX-fever.  Unfortunately, no one told me Maidenform Brands (MFB) was a cloud computing play... but apparently woman don't care what their shape looks like in the cloud.   Amazing what one downgrade can do on the right day.

The chart is completely busted and my -5% loss is -9% in a few hours.  (this was a +6% gain about a week ago)  With the technicals trashed I am going to leave and return once Maidenform Brands disgorges its cloud computing business.

p.s. I should have shorted that stock at mid $107s I sold not 90 minutes ago, with target of gap fill at $100 after all, it's already down 5% from where I sold.  However, after being beaten like a seal by Ben Bernanke's club for 6 weeks straight you lose your fight, especially in a rigged market where Fed officials now blatnatly say out loud they are trying to manipulate asset prices.  What a joke the market has become.  An embarrassment.

From "Mr. POMO" himself

  •  Brian Sack, who oversees the Fed's System Open Market Account at the New York Fed, "Nevertheless, balance sheet policy can still lower longer-term borrowing costs for many households and businesses, and it adds to household wealth by keeping asset prices higher than they otherwise would be."

No position


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