Tuesday, June 24, 2008

Diamonds, Spiders, Crude and Neflix - NFLX

The Diamonds, ticker DIA (chart above), which is the tracking stock of the Dow show a bear flag I had previously mentioned as worth watching. Well, it has broken to the downside convincingly. I would think $110 would be a very reasonable target to watch for on this.

The Spiders ticker SPY (chart above) show a picture that is slowly but surely deteriorating. The bulls had better hope and pray that all we do is test the Jan/Mar lows. Unfortunately I fear worse lies in store for this index.

Crude continues onward and upward. Please tune out the bubble heads on television as they would not let something as simple as the facts of supply and demand get in the way of a good show of demagoguery.

Housekeeping notes;

I was filled on a 2nd unit short of Netflix yesterday at $29.70 as NFLX has now broken the lower boundary of that flag and am now short 2 units. I would counsel the Neflix longs to be very careful with this one as the break of this pattern bodes much pain.

Good speculating to you all.
Open Positions:
Long 6 units Currencyshares Japanese Yen ticker FXY @ $88.55 stop at $91.40
Long 3 units Ultrashort Dow DXD@ $50.12 stops at DIA $130.26/127.34/126.42
Long 2 units Ultrashort Financials SKF @ $103.90 stops at XLF $26.72/25.54
Long 1 unit Currencyshares Swiss Franc ticker FXF @ $96.25 stop at $93.82
Long 3 units Ultrashort ReEstate ticker SRS @ $88.95 stops at IYR $71.14/70.21/68.36
Long 1 unit US Gasoline Fund ticker UGA @ $60.35 stop at $62.54
Long 1 unit Ultrashort QQQ ticker QID @ $37.05 stop at QQQQ $49.56
Long 1 unit Ultrashort S&P ticker SDS @ $57.20 stop at SPY $141.54
Long 2 units Hecla Mining ticker HL @ $8.50 stop at $7.16
Long 2 units Kinross Gold ticker KGC @ $18.93 stop at $17.56
Short 1 units Daimler AG ticker DAI @ $86.20 stop at $70.12
Short 2 units Brinker Int'al ticker EAT @ $20.07 stop at $22.44
Short 2 units Darden ticker DRI @ $36.35 stops at $35.36/33.54
Short 2 units Lehman ticker LEH @ $43.70 stop at $28.32
Short 2 units Deutsche Bank ticker DB @ $117.03 stops at $105.26/99.32
Short 1 unit of Visa ticker V @ $86.25 stop at $85.36
Short 1 unit HSBC ticker HBC @ $83.23 stop at $83.52
Short 2 units of Netflix ticker NFLX @ $30.35 stop at $34.64
Short 1 unit of IBM ticker IBM @ $122.80 stop at $127.27


m said...

How do you think the impending $300b housing bill will affect (a) SRS and (b) the market?

Harleydog said...


Window dressing and nothing more. I wish it could help but until house prices come back to more reasonable levels compared to income, we are headed down. Wish I had more positives to say but gov't meddling got us into this mess and IT GUARANTEED WILL NOT get us out!