Friday, October 10, 2008

Chicago Bridge & Iron - CBI

I want to bring your attention to a something I have been watching for some time. Chicago Bridge & Iron ticker CBI (chart above). I realise we are in a bear market and in a bear market the majority of stocks go down.

That said we look to have a massive washout possibly coming to an end. I am prepared to stick my toe in the water getting long 1 unit here at $11.55 with a stop just below the recent lows of 10.34. Small risk possibly massive reward setup. I realise some may see this type of relationship with many stocks out there, energy names especially like XTO, CHK, APA, SU, but I think, as my notes on the chart indicate.

A President and congress faced with massive unemployment, which I believe unfortunately is on the horizon, might start a massive public works/infrastructure program. I know I would. You're hearing pleas for the government to buy futures I say at least get something tangible for your risk. New bridges, roads, mass public transit, some societal benefit rather than throwing the money down the rat holes out there like AIG.

In this regard also on mine and you should have on your watch list are ABB the Sandinavian conglomerate and Bombardier, the Cdn company. They make mass transit subway cars, among other things, for those inclined to look into them further. Just a thought given what is transpiring.

I hope this note finds all my readers and visitors well. Hopefully we can remain calm and keep our heads while others around us are losing theirs.

Good speculating to you all and never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit of Ultrashort S&P ticker SDS @ 61.75 stops at $99.74
Long 1 unit of Ultrashort Dow ticker DXD @ $57.85 stop at $92.43
Long 1 unit of Ultrashort 20yr TBond ticker TBT @ $60.10 stop at $53.93
Long 1 unit of Agnico Eagle ticker AEM @ $48.80 stop at $43.61
Long 1 unit of Goldcorp ticker GG @ $29.50 stop at $24.42
Long 1 unit of Kinross Gold ticker KGC @ $15.40 stop at $12.98
Long 1 unit of Anglogold ticker AU at $17.90 stop at $15.39
Long 1 unit of Newmont Mining ticker NEM @ $34.85 stop at $31.86
Long 1 unit of Goldfields ticker GFI at $8.60 stop at $6.14
Long 1 unit of Chicago Bridge/Iron ticker CBI @ $11.55 stop at $9.88
Short 1 unit Int'l Bus Machines ticker IBM @ $129.05 stop at $104.89
Short 2 units of Apple ticker AAPL @ $178.05 stop at $97.51/$102.21
Short 2 units ticker CRM @ $56.05 stop at $38.71/$42.12

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