Thursday, January 8, 2009

Charts on APA and APC

The daily chart on Anadarko ticker APC (chart above) does not paint the rosiest of pictures. We seem to be forming a bear flag of some consequence here over the last few months. The waning volume as this has occurred does not bode well for a contradictory bullish view. Deep down I want to believe that the oils, the oil servicers, drillers et al are cheap but as any novice should know they can get much, much cheaper than we ever dream possible.

The next chart is of Apache ticker APA (chart above) where we seem to be having a moment of deja vu with another flag formation. As my notes indicate the lows of this recent formation better hold or a move down to the mid to high $20's would be in order. That said, if APA can take out $90, a move to $120 would be in store. Confused yet? I sure hope not.

Hat tip to Mish for catching the following Porn industry seeks federal bailout.

Just gotta love the sheer magnitude of the preposterousness of what we are witnessing. My guess is that with the inhabitants of congress and the senate, this has a better chance of passing than most others. Hey, politicians have needs to no?

I suggest you pay attention to the ADP numbers that were reported yesterday, even thought the like of Larry Kudlow will paper them over. Ignore them at your own peril.

I chuckled at the commentary yesterday on CNBC regarding Intel's news. The pundits claiming that the market is forward looking and prices all in. I guess maybe it just missed this one. Intel a one off affair you say?

Well then, I won't get into the Walmart news then, as it most surely is factored in by this forward looking market. And you thought I was just being mean, spiteful and overboard by calling the equity boyz short bus riding boobs. The facts speak for themselves whether you agree with them or not. Only in the government, or financial media or Wall St. can you ignore the facts and continue to succeed at staying employed.

Just remember this little exercise the next time cool breeze Bob Pisani tells you "the news was better than expected" or "we should be down much worse on this report".

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 2 units Ultrashort MSCI EAFE ticker EFU @ $89.80 stop at $84.67
Long 1 unit Ultrashort Financials ticker SKF @ $102.60 stop @ $99.47
Long 1 unit Ultrashort S&P500 ticker SDS @ $66.15 stop @ $63.77
Short 1 unit Darden ticker DRI @ $27.70 stop @ $30.12

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