Prudential Financial (PRU) has been in a very tight range and if you were only trading this stock it actually has been so range bound, if one were content with 1.5-2.5% moves one could trade it almost daily this entire month. It is now at the low end of that range so I took my 2% win and am running for the hills ahead of the now almost traditional Monday morning premarket surge. +2% for shorts nowadays is like +20% in a normal market.
If I were a daytrader I'd actually go long at this price near $53 and sell as it moves back to $54+. The outer end of the range is $52 to $55.50 but almost all the action is in the $1.50 range of $53 to $54.50. The chart is still exhibiting weakness over the intermediate term - anything not well over all moving averages or at least the 50 and 200 day MA's during such a melt up speaks volumes. Earnings Nov 3rd - might be the only thing to wake it up.
As an aside there is a G20 meeting of finance ministers this weekend where Geithner will talk about the "strong dollar" (I assume with a straight face). Brazil is not even showing up as they appear quite peeved by the constant money printing which is causing havoc with inflation in strong economies. Much like they did during QE1 they are taking more steps to try to keep easy money U.S. pesos from flooding their country. Any country which is realistic with their inflation figures is showing large jumps... with the exception of course of China which insists it can grow 10% forever with only 3% inflation (wink wink).
Western (and Japanese) money printing ---> floods of inflation in East (and Brazil). Hopefully Geithner has that smile working overtime this weekend.
Friday, October 22, 2010
Bookkeeping: Covering Prudential (PRU) Short
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