Tuesday, October 28, 2008

What I'm more interested in...

On a day when the market climbs 11%, I'm a lot more interested in the following:

1) Stocks that couldn't go higher on an 11% up day - (i.e. Goldman Sachs rose < 1%, while XLF rose almost 16%)

2) Stocks that moved more than 11%, after accounting for their respective beta - (i.e. MON has a beta of 1.17 but climbed 17% today)

Other overreactions may include SRS, SKF, and FXP (even though these are ultra shorts, they are down between 25%-35%)

I would like to see several follow through days to bring all stocks back to levels that make sense to get short at again.

For example, it would be very cooperative for AMZN to get back to the low/mid 60s for a great short setup...

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