August 31st Review

Even though the Chinese markets were in complete disarray in their Monday trading, the American markets held up relatively well. Granted, they did close down around 50 points on the Dow, but that is nowhere near 5%. I think the Chinese markets could be foreshadowing the kind of move that we may be getting soon. It's a fact of life...these markets have been overextended. They need a correction, but no one knows when the correction is coming.

Oil was on the plummet downward today, and that helped our short oil/short the dollar trade of a while back. A lot of these arb plays that I have mentioned of late are going to be month long or more holds. These just aren't short trades--they are 6-month type trades. Nat gas gapped lower, but finished higher today. I still haven't seen that buy signal yet, but I'm watching. I'll let you know when I see something I like.

DRJ was a nice green to red candidate after gapping higher at the open. That was a nice place to short, but even if you waited all the way for some negative signal, you should still be sitting nicely at a gain of around 10%. These are easy trades...hopefully you all profited. The stock continues to be volatile, so there could easily be more to profit tomorrow.

HLCS and SVA are a pair of bio-techs that continue to romp higher. I think I might have mentioned SVA as a continuation buy, but that is neither here nor there. What is important, however, is that both of these stocks look like ripe short sell candidates. Satyam (SAY), the doomed Indian software company or whatever, popped nicely today. I liked these shares after the collapse near the $2 mark...now they are sitting around $6.50...nice! More to come? Very possibly. CPRX is a bio-tech name that probably had some news out today considering the spike. It's overdone...that's my guess at least. We'll see how these go tomorrow...

MK