ManyPeaks.com

I love trading the charts because you’re never married to a position. You play each stock like it’s a poker hand and bet/raise/fold accordingly. Each position is equivalent to Ron Artest on a 1 year contract — act right or you’re outta here.

For a generally low volume day, Teewinot’s trade blotter showed above average activity. We made several types of moves today.

We are out of our PWEI long. I thought this one had tons of potential, and it may again later. But the breakout I thought was imminent got smashed on Wednesday. Now it’s below both the earnings close day and last week’s high volume day.. I don’t like the odds here now, so we exited semi-graciously on today’s little bounce. Then, in a slightly unusual play for me, actually went short some PWEI late in the day. Keeping a tight leash there.. new highs and we’re likely flip-flopping.

We picked up some ITG shares today. They sell trading technology to big asset managers and broker/dealers. As a startup guy having just (manually) completed my first billing period calculations, I know how integral some nice software would be.

ITG sports 50% yoy revenue growth and 100% EPS growth. The uptrend looks ready to resume and we got long in this little chop area around $50. That high volume day last week is one I will respect and literally “lean on”… giving myself free reign to bid aggressively within that price range.. and looking to exit the whole position only on a move below that day’s low. Any close below that level invalidates my trade thesis regarding the importance of the high volume move.

Finally, we’ve significantly lightened up the recent gold position. I like this for a longer term play, but think the rally into tomorrow’s earnings numbers is sellable. I think gold needs to pull back before the bigger trend reasserts itself, and our bids are already in for clients in the $61 and $60 areas. The tracking stock GLD represents fractional ownership of a massive gold bullion stash held in a vault somewhere.. a bit sketchy.. but arbitrage seems to keep these ETF’s in line, trading as they’re meant to. GLD basically trades at 1/10 of spot gold prices. If this method of gold exposure fails, we’ll move to a different vehicle. We’re not actually gold bugs, but their numbers are on the rise longer-term. Gotta take advantage somehow.
Long ITG, GLD
Short PWEI