Wednesday, May 13, 2009

Healthy Pullback

Its nice to see stocks pull back a bit. I was originally targeting 875 on the S&P as a number where I thought we'd pull back to, and I'll stick with that for now. If we reach it quite quickly, I might re-adjust that.

Set up a nice trade on SDS yesterday, but was shaken out when I set my stop just a bit too tight. It gets a little frustrating when you get the move right, but don't execute properly.

I'm going to be taking a look at adding a few long positions in the next couple of days...

-Natural Gas (UNG) is finally pulling back, and I may re-establish a position in that.

-I also like Diamond Offshore (DO), which would be longer-term hold.

-I'm also following General Growth Properties (GGWPQ). It went into bankruptcy in April and now trades on the Pink Sheets. It isn't your typical bankruptcy as the company is operating well, but the freeze in the credit markets prompted the filing. Take a look at Todd Sullivan's commentary regarding this, he is all over this one.

Disclosure: None