Hey Oxen Report readers. I apologize for missing Thursday and Friday. I am extremely ill with some kind of flu. It hasn’t gone away completely, so my mind is a little coo-coo. We left off on last Wednesday with the Buy Pick of the Day as SRS. We got involved in the stock at 8.65, which was recommended as an adjusted entry price in my Oxen Alert Morning Level. From that entry, we were looking for an exit of 8.82. We did not hit that exit price on Wednesday, however, it was hit on Thursday and Friday. Our Short Sale of the Day was ERX, which we got into at 47.30. We were looking for an exit of 46.45 or lower. We never got quite that low, so towards the end of the day we sold it at 46.83 for a 1% gain. Not a great day but not too terrible either.
Let’s get into today’s picks…
Buy Pick of the Day: Proshares Ultra/Ultrashort Real Estate (URE/SRS)
Monday mornings are always a tough day to predict because of the weekend. Today, we have really high futures and some good earnings. Things look good overseas, and it seems like everything is setting up for a big rally day. There is one major economic data point that could squash those dreams or carry them to the promise land. That point would be the National Assc. of Realtors’ information on the number of existing homes sold in the month of October. The data will be key to housing, which has seen a number of misses in the past few releases. My inclination is to just say buy SRS again, but it has had such a run up the last two sessions that it is appearing a bit overvalued in the short term. What’s a person to do…
IN PROGRESS
Entry: We are looking to enter either URE or SRS on the release of the Existing Home Sales data. If the existing homes sold was at or greater than 5.7 milion, we want to buy URE. If the reverse is true, we want to buy SRS.
Exit: We are looking for 2-3% gains.
Stop Loss: 3% on bottom.
Short Sale of the Day: Solarfun Power Holdings Inc. (SOLF)
Entry: We want to short SOLF at 6.95 – 7.05.
Exit: We are looking to cover for a 2-3% gain.
Stop Buy: 3% on top of entry.
IN PROGRESS
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