Trades 1/20/10

The Dow dropped 100 points in the first six minutes of trading, eliminating that long crawl up that we had yesterday.  It is as if Tuesday never happened.  With all the positive sentiment related to the two major buy-outs yesterday, today those who bought in, are dismayed.

UPDATE 1-Fitch downgrades Kraft, Cadbury on takeover plan
Wed Jan 20, 2010 8:00am EST

A few stocks that have been gaining this morning.

UAUA - United Airlines - gained 0.25 in the first half hour
RDN - Radian - broke out hitting 8.11
C - Citibank - climbed to 3.60

I usually buy performing stocks when the market dips, as was my strategy for C yesterday.  The market didn't dip yesterday and C gained some ground.  Today C dropped a bit but is gaining in spite of the gap down and downward trend first hour.

RDN broke out early on, in spite of the gap down, and may be worth buying if this is truly a dip.

If this is an extension of the downward trend we had seen last week, then we should be joining the crowd, looking for a good candidate to short.

I already own puts purchased when the Dow neared 10,700 a week or so ago..
UAUA, February, strike 8
TS, January, strike 40


Post a Comment