Posts Tagged ‘shorting’

DARK HORSE HEDGE – Shorting Suntrust & BooKS

DARK HORSE HEDGE – Shorting Suntrust & BooKS

By Scott Brown at Sabrient & Ilene at Phil’s Stock World

The markets appeared to like the calendar change from August to September today as all three major indexes close with +2.5% gains.  The S&P 500 closed the day at 1080, almost exactly on the 50 day MA.  This provides a good opportunity for DHH to replace a couple of SHORT positions that were closed to take profits while the market battled the support line at 1040. 

We are going to go another round with Suntrust Bank (STI) which already provided us with a +11.2% profit the first time around.  STI closed up 5% today at $23.65, earning it a spot on the SHORT list again.  Joining STI is bricks and mortar book seller, Barnes & Noble, Inc. (BKS), which closed today at $15.63, up +3.24%, after reporting a wider loss in the second quarter.  We are not sure what there is to like about widening losses. Ranking at #9 on the bottom of the Sabrient Outlook rankings provides plenty of reason to recommend adding BKS as a SHORT.

SELL SHORT STI – Again – Thursday, September 2, 2010 at the open. 

SELL SHORT BKS – Thursday, September 2, 2010 at the open.

These additions to the DHH virtual portfolio establish the tilt SHORT called for when the S&P 500 trades below both the 50 and 200 day moving averages.  

Screen shot 2010-09-01 at 9.06.38 PM

Chart by FreeStockCharts.com


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Dark Horse Hedge – Shorting HUSA, Again

Dark Horse Hedge – Shorting HUSA, Again

By Scott at Sabrient and Ilene at Phil’s Stock World

Short Houston American Energy Corp, HUSA, $10.54 

We are going to re-enter our SHORT position in Houston American Energy Corp (HUSA) today. After shorting HUSA once, and covering last Friday before the earning’s bounce, we continue to believe the company is overvalued with a 327M market capitalization.  Sabrient has a hold rating on the stock. 

We wrote on July 1, 2010:

Houston American Energy Corp. engages in the exploration, development, and production of natural gas, crude oil, and condensate. It primarily focuses on properties located in the United States. Last Monday (June 28), Sharesleuth.com published an article about HUSA expressing a number of concerns, including concerns about the management team’s history, questionable valuations on the Columbian estimates, and significant ties to people with prior SEC troubles. From Sharesleuth.com:

A SPECTACULAR DEAL?

The gains are linked largely to Houston American’s deal last October for a 25 percent interest in a Colombian oil prospect controlled by SK Energy Co., one of Asia’s biggest producers, refiners and marketers.

Houston American said in an investor presentation and subsequent Securities and Exchange Commission filing that the prospect was estimated to hold anywhere from 1 billion to 4 billion barrels of “recoverable reserves.”

The latter figure exceeds the official proved and probable reserves for all of Colombia, and stands as one of the most audacious claims by any of the energy companies operating in that country.

Houston American did not cite a consultant’s report or any other independent study as the source of its estimate. Nor did the company offer any qualifiers, such as the percentage of those reserves it has a reasonable certainty of producing…

So, for all the same reasons we shorted HUSA before, we are jumping back in. In addition, the 10-Q released on August 16 stated that the board of directors authorized bonuses of $637,500 and pay increases of 10% for senior management.  There were only three full time employees (one new employee just hired), according to Yahoo’s profile, so we take this to mean that either the CEO and the CFO or the CEO, the CFO and the other employee are all getting raises and bonuses.  Moreover, the company declared a 0.2% dividend which seems as premature as the bonuses. 


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You Could Now Be Arrested, In America, Just For Mentioning Europe’s Problems Over Dinner

You Could Now Be Arrested, In America, Just For Mentioning Europe’s Problems Over Dinner

Courtesy of Vincent Fernando at Clusterstock/Business Insider 

georgesoros thinking tbi

You know a company/country/continent is in trouble when authorities start cracking down on short bets against it.

That’s why it’s so disturbing how much heat European currency and sovereign debt speculators are getting these days.

Even the U.S. has climbed aboard the bandwagon now.

Reports of a U.S. Justice Department investigation into Soros Fund Management, SAC, and Greenlight Capital short positions against the euro broke last week.

Yet now the speculator clamp down is evolving into something completely terrifying. Apparently, it could now be considered collusion if you simply share economic opinions over dinner:

WSJ:

The Journal article disclosed that the big euro bets were emerging amid gatherings including an "idea dinner" involving a number of hedge funds including SAC, Greenlight and Soros, where a trader argued that the euro is likely to fall to "parity," or equal to, against the dollar on an exchange basis. The euro currently trades at $1.3609. One of the questions investigators are likely to examine is whether such information-sharing constitutes collusion, the people say.

At one such gathering, a dinner on Feb. 8 at a Manhattan restaurant, an SAC portfolio manager said he believed the euro could fall to a level equal to that of the dollar and urged other traders to "short," or bet against, the euro as his firm had, according to people at the dinner. The size of the bets against the euro is unclear.

In a research note issued to hundreds of hedge-fund clients shortly after the dinner, the research boutique that hosted the event summed up the SAC manager’s argument without mentioning his name. [But attributing it to an unnamed third party source, 'a presenter', which is standard practice]

One of the most dangerous misconceptions used to restrict economic freedoms is that opinions have more weight than fundamentals. Should we arrest people for threatening ‘economic stability’ if they argue against a particular stimulus bill or government and then collectively vote against it?

Because that’s all euro-shorts are doing. Whoever thinks that euro speculators are pushing the euro to unfairly low levels has an opportunity to vote against them any day of the week in the currency markets. So let’s not forget that a truly viable currency can carry the weight of open criticism, just like a strong nation or value-system can. Else traders better brush up on…
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Short Seller Fleckenstein: I’ll Start Selling AFTER Earnings Season

Short Seller Fleckenstein: I’ll Start Selling AFTER Earnings Season

Courtesy of Vincent Fernando at Clusterstock

Bill Fleckenstein

Fleckenstein Capital’s twelve-year-old short-selling fund that shut down last December is planning to start hunting around again for opportunities.

Yet they’re waiting until after earnings season, and could even wait until early next year.

For Fleckenstein Capital, while 2010 could be a very rough year for the market, 2009 could end strong. Even these shorts don’t want to step in front of earnings season right now.

Bloomberg: Future bets against U.S. stocks will “almost certainly” include technology companies, especially semiconductor makers, Fleckenstein said.

“They’re going to report good earnings, but a lot of it is a function of double- and triple-ordering, so their businesses are going to look better than they really are,” he said.

In a Bloomberg TV interview, Bill Fleckenstein said he expects weak businesses to run into trouble next year, especially if rates start rising. Nevertheless it appears he wants to see the economy’s "less worse" trend come to an end before he takes action.

What does he favor in the meantime? Shares in gold related companies.

 


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Phil's Favorites

Bloody uprising in Nicaragua could trigger the next Central American refugee crisis

 

Bloody uprising in Nicaragua could trigger the next Central American refugee crisis

Militias guard a barricade after police and pro-government militias stormed a rebel-held neighborhood in Masaya, Nicaragua, on July 17, 2018. AP Photo/Cristibal Venegas

Courtesy of Jose Miguel Cruz, Florida International University

Central American migrants have long been at the center of what consecutive U.S. administrations have called the immigration “crisis.”

...

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Zero Hedge

Watch: Drone Flies Dangerously "Feet Away" From An Airbus A380

Courtesy of ZeroHedge. View original post here.

Fresh off the internet, an incredible video shows the moment an unmanned aerial vehicle (UAV) flies into the path of the world’s largest passenger airliner.

Video of the incident was first reported by HelicoMicro, which has since circulated many drone and photography forums. The video shows just how stupid someone can be while operating a recreational drone near an airport.

According to Oliver Kmia, a photo analyst for ...



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Insider Scoop

BofA Points To Yum China's Earnings Downside Risk In Downgrade

Courtesy of Benzinga.

Related 31 Stocks Moving In Friday's Mid-Day Session Benzinga's Top Upgrades, Downgrades For July 20, 2018 ...

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Chart School

Small Caps Enjoy Best of Action

Courtesy of Declan.

There wasn't a whole lot going on today except Small Caps were able to attract some buyers despite finishing below resistance; bulls have been taking advantage of the 20-day MA test. Today's action coincided with 'buy' signals in the MACD and +DI/-DI.


The S&P held its breakout and today's losses - despite higher volume selling - didn't do a whole lot of damage.

...

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Digital Currencies

Citadel CEO Says Bitcoin Still A "Head Scratcher" But Billionaire Lasry Sees $40,000 Soon

Courtesy of ZeroHedge. View original post here.

Ken Griffin, the CEO and founder of the Citadel hedge fund, has reiterated his negative stance on Bitcoin (BTC) in an interview with CNBC this morning.

Speaking at the Delivering Alpha Conference in New York, ...



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Biotech

How summer and diet damage your DNA, and what you can do

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

 

How summer and diet damage your DNA, and what you can do

Bright sun and fatty foods are a bad recipe for your DNA. By Tish1/shutterstock.com

Courtesy of Adam Barsouk, University of Pittsburgh

Today, your body will accumulate quadrillions of new injuries in your DNA. The constant onslaught of many forms of damage, some of which permanently...



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Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



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ValueWalk

Buffett At His Best

By csinvesting. Originally published at ValueWalk.

Bear with me as I share a bit of my history that helped me create SkyVu and the Battle Bears games. The University of Nebraska gave me my first job after college. I mostly pushed TV carts around, edited videos for professors or the occasional speaker event. One day, Warren Buffet came to campus to speak to the College of Business. I didn’t think much of this speech at the time but I saved it for some reason. 15 years later, as a founder of my own company, I watch and listen to this particular speech every year to remind myself of the fundamentals and values Mr. Buffett looks for. He’s addressing business students at his alma mater, so I think his style here is a bit more ‘close to home’ than in his other speeches. Hopefully many of you find great value in this video like I have. Sorry for the VHS...



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Kimble Charting Solutions

The Stock Bull Market Stops Here!

 

The Stock Bull Market Stops Here!

Courtesy of Kimble Charting

 

The definition of a bull market or bull trends widely vary. One of the more common criteria for bull markets is determined by the asset being above or below its 200 day moving average.

In my humble opinion, each index above remains in a bull trend, as triple support (200-day moving averages, 2-year rising support lines, and February lows) are still in play ...



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Members' Corner

Cambridge Analytica and the 2016 Election: What you need to know (updated)

 

"If you want to fundamentally reshape society, you first have to break it." ~ Christopher Wylie

[Interview: Cambridge Analytica whistleblower: 'We spent $1m harvesting millions of Facebook profiles' – video]

"You’ve probably heard by now that Cambridge Analytica, which is backed by the borderline-psychotic Mercer family and was formerly chaired by Steve Bannon, had a decisive role in manipulating voters on a one-by-one basis – using their own personal data to push them toward voting ...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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