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IBDvalueinvestin (99.59)

Big short trap being setup this morning.

Recs

10

January 12, 2010 – Comments (5) | RELATED TICKERS: AA , ELX , PVH

Its the typical wall street trap that is run all the time during a bull market.

Have news sources in pre-market hype the miss of one company "Today's AA" while ignoring the huge beats and upward guidance of others "PVH,SVU,INFY, ELX, CRUS". Then have bloomberg say the futures are down because China is slowing growth by requiring banks to have more cash on hand. Actually the Chinese move is a good one, they learned from the USA mistake and taking steps to avoid the same fate well ahead of time. Notice many Chinese stocks that are not bank related are upticking in the pre-market.

CBEH, CTFO, CDII, PWRD,  DEER,  CSIQ, CMFO, YUII, ASIA, RINO, HRBN, SOHU, JST, JADE

 

Look for shorts to be suckered in at the gap down open and then forced to cover all day long.

This is a "Typical Bull Market type Trap of Shorts"

 

 

5 Comments – Post Your Own

#1) On January 12, 2010 at 8:57 AM, Dobbes (< 20) wrote:

We'll see how it plays out.  Its so easy to manipulate things pre-market... the open will tell us if the bears are finally returning.

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#2) On January 12, 2010 at 10:39 AM, IBDvalueinvestin (99.59) wrote:

Its playing out just like I said, GAP down then rebound all day.

I would not be surprised if majority Chinese stocks finish green.

Especially : DEER, ZSTN,  CBEH, SKBI, JST , CTFO, CDII, PWRD, 

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#3) On January 12, 2010 at 12:09 PM, IBDvalueinvestin (99.59) wrote:

Look at the short trap they are placing on

CSIQ, down -$1.55  to $31.04

but if you seen the eps estimates recently you know this stock is headed to $40+

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#4) On January 12, 2010 at 12:41 PM, tkell31 (< 20) wrote:

It's one day.  Can't go up every single day, but I would agree the media can put a spin out there that the sky is falling one day, and the next day it's full speed ahead as if the day before didn't exist.  I guess that is why it is so tempting to day trade, but personally I cant time the market so if I like a stock I will try to buy during a drop in price, but ultimately will get in the position during a run up if I have to.

Thanks for the list of stocks to look into.  Not sure they will all be back up today, but probably will be by the end of the week.

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#5) On January 12, 2010 at 1:57 PM, FreeMortal (30.03) wrote:

IBDvalueinvestin "China is slowing growth by requiring banks to have more cash on hand. Actually the Chinese move is a good one, they learned from the USA mistake and taking steps to avoid the same fate well ahead of time."

You have a good point there.  Not only is this a prudent move on the part of China to prevent overheating, it also shows that the Chinese government has enough faith in its own economy that it can withstand a tighter monetary climate.  I'm not selling or shorting China any time soon.  When the FED follows suit, my outlook for the US will get much more bullish as well.

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