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February 5, 2008


Four Trading Ideas for Tuesday, February 5

The Box came up with four ideas, all shorts, for Tuesday, February 5th.

I will be away on vacation for the next couple of weeks so these are the last ideas I will send out to list members for awhile. The Box will hum contentedly on my desk, but no one will be paying attention to it. I fear that once I start charging for these ideas, starting March 1st, the Box will be busting its back for only me and 12 loyal subscribers. We’ll see.

AYI formed an inside bar yesterday, so following the ABC rules, the stop will remain below Friday’s low at 44.17.

With the new short in Martin Marietta, MLM, the original protective stop should be in place above 125.30. If this darling falls to 108.66 (1x initial risk), then move the stop to breakeven.

(Aside: I spoke with the developer of the volume-at-price charts at Bloomberg and he told me they are working on serving 50 to 100 days of data instead of the current maximum of 20 days. 100 days (20 weeks) of volume-at-price would be fabulous and I can’t wait till they have it.)

Happy Chinese New Year, guys!

16 Responses to “Four Trading Ideas for Tuesday, February 5”

  1. eyal said:

    Gong xi fa cai.. hong bao yi ge lai ;-)

  2. C. Maoxian said:

    eyal: Kung Hei Fat Choy to you with an emphasis on the fat, which does not describe the state of your hongbao given my atrocious WM timing. Just don’t call me a Rat. :)

  3. bbc said:

    To celebrate the New Year and clean house, why not give free subscriptions to your trading ideas to all those who received the regional banks list…now deep under water.

    Smiling across the waters.

  4. C. Maoxian said:

    bbc: I think the Top Ten Financial favorites is now positive after gentle Ben’s slash and burn campaign, assuming you bought all ten. :-)

  5. bbc said:

    As the economist John Maynard Keynes observed, in the end we are all dead.

  6. eyal said:

    CM - so you’re it describes the state of my body or what? :-) Besides, I prefer Mandarin..

    bbc - I believe it was: “in the long-run we are all dead”.

  7. C. Maoxian said:

    eyal: I didn’t mean you are fat, I meant let’s hope the Year of the Rat is a fat one.

  8. eyal said:

    :-) They lit up the firecrackers in my condo here this morning, it’s now bound to be a prosperous year. Enjoy your vacation.

  9. Andrew said:

    I trust the box has the GCC pic posting covered as well why you are gone CM?

    Have a refreshing break.

  10. Tom D said:

    I hope C is going to Harbin to see this

  11. beanieville said:

    So Mao, how bad is the snow there in
    China? Is it effecting many businesses?

  12. julieng said:

    The Obama Wave is coming ;)

  13. Brian said:

    Things can get much much worse for the financials. If people are starting to find it OK to walk away from their mortgages, I wonder if they’ll find it OK to walk away from their other debts as well?

    XLF still looks ugly, but XHB is starting to look a little better.

  14. Andreas said:

    People are losing their houses. I would not call that “walking away”, exactly.

  15. Zangfreid said:

    Most people aren’t losing their houses. Most had so little equity, I would hardly say the houses were theirs in the first place. More like they were renting and even when looked at this way, many were renting beyond their means, so now they have to move back to a place within their means…

  16. Brian said:

    Anyway, the point of my post is that there are still too many skeletons in the closet for me to feel comfortable holding the financials.

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