Yesterday, we had one successful trade and one that we decided to continue to hold through today because there was no point in selling for such a huge loss close to 3%. Our Buy Pick of the Day, for yesterday, was Ultrashort Proshares Real Estate (SRS). We liked the stock due to what I thought was going to be a down day in the markets, but it turned out to be a great sector specific call. We got into SRS at 7.95, which was adjusted in our Morning Levels alert. We were looking for a 2-4% gain on the day with a range of 8.11 – 8.27. We were able to get all the way up to 8.27 for a 4% increase. On the Short Sale side, we liked Advanced Micro Devices Inc. because the stock appeared to be significantly overvalued and presented a great shorting opportunity. When the market did not tank, AMD was strongheaded. We got into it at 8.35, and we are still holding hoping to get out today.
Let’s get to today’s market…
Buy Pick of the Day: Ultrashort Proshares Financials ETF (SKF)
I don’t see how the market is going to rally today, but I do think it probably will get some movement upwards this morning because futures are drastically low, down 85 points on the Dow as of 8:50 AM. The markets, across the globe, were all down on the Bernanke commentary. The comments have led to a continued stronger dollar, which hurts the marketplace. Especially since I did not see much pricing in of these comments yesterday, I am in full belief that it has to happen at some point. On the rest of the market’s front, there is not much good news either. FedEx said it will top its previous guidance, but in the same breath, McDonald’s saw its November same-store sales drop from one year ago and 3M affirmed its guidance below estimates. Kroger missed on earnings, which is a sort of bellweather stock. Overall, the market is just not looking too spectacular this morning.
For this reason, I like Ultrashort Proshares Financials ETF (SKF). The ETF is a solid play today in much the same way SRS was yesterday. We have what appears to be a down market, and it will be hard to find stocks that can really rally much in this market today. Therefore, we want to look towards safer plays in a…
