Riding the Transports

I have recently taken a liking to shorting certain transportation stocks. Symbols include NSC, CNI, and BNI. The above is a close-up of NSC.

As you can see, there are two nice, clean supporting trendlines (well, formerly supporting). It took out the first one a couple of weeks ago. And it took out the lower one today (April 8th). I've covered this position for now (as well as my short and put for CNI) for a nice profit. If you look at $TRAN, you'll see it violated a major supporting trendline today as well.

AIG Yow-Hoo

This was dumb luck. And some analysis. Anyway, AIG had been getting smashed really badly over the past several weeks. It seemed to have reached a double bottom (notice how Friday and Monday's prices didn't go beneath $50).

So on Monday morning I gobbled up a ton of stock and calls. I drove into work, and blammo, the stock had soared thanks to Elliott Spitzer (see green highlighted area). I went ahead and got out of the whole position for a great profit. Thanks, Elliott!

The End of a Good Week

I remain 100% short the market right now (about 30 shorts and puts) and am fairly satisfied with my positions.

This morning I had a knot in my stomach as I saw the jobs report (and the reaction on the GLOBEX) since it was clear the market was going to spike higher. It did, and of course every single position got nailed.

What I found to be a huge relief though - and the magic of trendlines never fails to amaze me - is that the $SPX shot up toward the underbelly of the trendline it had broken earlier in the week, and it did not cross above it.