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August 10, 2007


Stock Du Jour (WTR) & Random Observations

Kind of a negative neutral morning but then the selling got underway in earnest before lunch. Still a panicky, jittery market. I’ve been updating the CMBS BBB- post … the spread as of last Friday was 403 bps which is approaching Russian debt default / LTCM crisis levels. No wonder you have grown men going bananas on live TV. My two cents? In crisis, opportunity. If you have cash sitting around, look to put it to work.

Notable New Lows: American Eagle (AEO), Dillards (DDS), Limelight Networks (LLNW) and Mylan Labs (MYL).

Notable New Highs: Aqua America (WTR), Altera (ALTR), and Life Time Fitness (LTM).

I’ll feature a weekly chart Aqua America (WTR), which has moved to a new yearly high … you can see it still has quite a bit of supply, or “resistance,” above.

WTR

This entry was posted on Friday, August 10th, 2007 at 7:27 am (utc+8) and is filed under Trading and Investing.

4 Responses to “Stock Du Jour (WTR) & Random Observations”

  1. Brian said:
    August 10th, 2007 at 9:18 am

    I’m maintaining my cash position and doing a few day trades here and there. I just noticed that inverse ETFs such as SDS pay dividends. May be a good way to hedge portfolios.

  2. C. Maoxian said:
    August 10th, 2007 at 12:11 pm

    Brian: The inverse ETFs like QID and SDS are also super-liquid (especially rcently) and make excellent day trading vehicles as well.

  3. Brian said:
    August 10th, 2007 at 4:28 pm

    Agree, but I prefer futures for the indices for day trading. ;)

  4. C. Maoxian said:
    August 10th, 2007 at 4:47 pm

    Brian: I suppose futures are the most “capital efficient” way to day trade, but I don’t want to pay for the CME feed. ;-)

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