It is not much of a Wonderful Wednesday as questions over the Fed’s buy back of Treasury bonds have started to mount. The news has overshadowed better than expected home sales and durable orders, as well as, strong earnings from Comcast and Office Depot. Our current positions have been hurt by the extremely weak day in the markets. Skechers, which we entered at 23.80 is down about 1.5%. My goal for this position is to exit half of it today and let half of it ride into earnings. The stock should bounce back to give us at least a break even or small gain before the close as I expect a nice afternoon lift. Yingli Green was actually up for us today, and we might have gotten all the gain I had expected today if it were not for the weak market. We got involved at 11.83, and we are looking to exit at around 12.18 and above.

Since the market has taken such a significant dip, an Overnight Trade looks very promising today. We may even be able to get involved with it and sell half or the whole position from our entry here if we can get an afternoon bounce…

 

Overnight Trade of the Day: Key Energy Services Inc. (KEG)

Analysis: The oil and gas exploration business is one of the hottest businesses for this quarter. Companies are seeing a surge of onshore drilling after the BP crisis and heavy influx of oil prices. Oil price have increased for Q3 YOY. 2009 prices in July – September ranged from $66 – $80 per barrel with an average price in the mid-70s. This year, prices have not fallen below 75 and are averaging out closer to $80 per barrel. The increase in prices has led to a raid on oil and gas exploration as companies are attempting to take advantage of higher demands for oil.

One such company that looks poised to benefit from the onshore drilling explosion is Key Energy Services (KEG). The company has a lot going for it moving into earnings. It has an industry that is looking very solid, a turn to profits, and its own reported rigging numbers that show a discrepancy between revenue and earnings estimates and what could actually be reported. Not to mention that the stock has current undervaluation…