Thursday, February 3, 2011
Trading Alert - $TBT
TBT is trying to break out today. I posted in a previous blog that TBT could be a buy on a break above 39.50. It gapped up on the open today, opening at 39.91, but has since pulled back a little. I just went long @ 39.53. It needs to close above 39.50 for me to stay long overnight.
Molycorp - Anatomy of a Successful Trade
In many ways trading is like golf. In both cases you are competing against others, but you're also constantly battling yourself to do the right things, stick to your game plan, etc. And while in golf you are always trying to hit that perfect shot, in trading you are always trying to make that perfect trade. And every now and again, if you stick to your strategy, you succeed. Molycorp (MCP) was one of those "perfect trades" for me this past week.
I'm not saying this would be everyone's perfect trade. Everyone has different trading strategies, and different objectives. But for me, the outcome was what I envision and hope for on almost every trade I put on.
And I'm not writing this to brag (I've had many horrible trades as well, and will highlight some of them at a future date). I am writing it to so that it will be a constant reminder to myself as to what a good trade looks like, and at the same time hopefully it will help other traders searching for their own "perfect trades".
Background
Like many traders, I had been watching MCP off and on since it IPO'd back in the summer for around 13 bucks. Over a span of 5 months it rose nearly 400% hitting a high of 62.78 on Jan 4. Once it started to come off its highs, I began to look at the charts to figure out what level might provide a good risk/reward to get long.
Traders had been steadily selling the stock since the beginning of the year, and with the insider lock-up period ending on Jan 25 traders were starting to short the company aggressively on anticipation of a glut of shares being dumped on the market. I figured the 50 day moving average would be a natural level to attempt a long, but due to the lock-up period ending I decided I was going to wait until after Jan 25 to see how the stock reacted.
Then on Jan 24, with the stock down once again, the stock was halted and the company announced the following:
What caught my eye was that the $500 million common stock offering would be used to help facilitate the liquidity objectives of a number of early shareholders, led by Resource Capital Funds. This told me that the number of shares that could hit the market on Jan 25 would not be nearly as large as the market was fearing. And not only was the market concerned about this expected supply of shares, it had aggressively shorted the stock in anticipation of it.
This was a no-brainer...
By the time I got long I was lifting 44.89's. Let me tell you, lifting an offer 10% higher than where it was just minutes earlier is not an easy trade. But given the facts listed above I knew I had to be long. And having both the fundamentals and technicals in agreement gave me the confidence I needed to pull the trigger. It also gave me the confidence to trade around the position.
I set my stop under 43.50, figuring if it traded back down then I mis-read the situation. My technical target was 50+. Specifically I was looking at 51.50, as it represented the 50% retracement from the Jan 4 high to the 40.25 low on Jan 24. That represented a risk to reward ratio of almost 7:1. And I figured my upside target could be reached within about 2 weeks. Those types of opportunities don't come along every day.
For those that are interested, here are the exact trades I made between Jan 24 and Feb 2 when I closed out my position:
Of course, the stock continued to climb this afternoon and closed the day @ 53.25, so one could argue that I left some money on the table. I'm ok with that. I had a strategy when I entered the trade and I followed it. I will not have any regrets if it trades to $80 by the end of the week.
Good luck and good trading.
I'm not saying this would be everyone's perfect trade. Everyone has different trading strategies, and different objectives. But for me, the outcome was what I envision and hope for on almost every trade I put on.
And I'm not writing this to brag (I've had many horrible trades as well, and will highlight some of them at a future date). I am writing it to so that it will be a constant reminder to myself as to what a good trade looks like, and at the same time hopefully it will help other traders searching for their own "perfect trades".
Background
Like many traders, I had been watching MCP off and on since it IPO'd back in the summer for around 13 bucks. Over a span of 5 months it rose nearly 400% hitting a high of 62.78 on Jan 4. Once it started to come off its highs, I began to look at the charts to figure out what level might provide a good risk/reward to get long.
Traders had been steadily selling the stock since the beginning of the year, and with the insider lock-up period ending on Jan 25 traders were starting to short the company aggressively on anticipation of a glut of shares being dumped on the market. I figured the 50 day moving average would be a natural level to attempt a long, but due to the lock-up period ending I decided I was going to wait until after Jan 25 to see how the stock reacted.
Then on Jan 24, with the stock down once again, the stock was halted and the company announced the following:
- A doubling of their planned production
- A $172.5 million convertible preferred stock offering
- A secondary offering of common stock for up to $500 million
What caught my eye was that the $500 million common stock offering would be used to help facilitate the liquidity objectives of a number of early shareholders, led by Resource Capital Funds. This told me that the number of shares that could hit the market on Jan 25 would not be nearly as large as the market was fearing. And not only was the market concerned about this expected supply of shares, it had aggressively shorted the stock in anticipation of it.
This was a no-brainer...
- The stock was oversold
- The company had just announced a doubling of their planned production
- There was no longer a glut of shares to suddenly hit the market on Jan 25, and
- The stock was heavily shorted.
By the time I got long I was lifting 44.89's. Let me tell you, lifting an offer 10% higher than where it was just minutes earlier is not an easy trade. But given the facts listed above I knew I had to be long. And having both the fundamentals and technicals in agreement gave me the confidence I needed to pull the trigger. It also gave me the confidence to trade around the position.
I set my stop under 43.50, figuring if it traded back down then I mis-read the situation. My technical target was 50+. Specifically I was looking at 51.50, as it represented the 50% retracement from the Jan 4 high to the 40.25 low on Jan 24. That represented a risk to reward ratio of almost 7:1. And I figured my upside target could be reached within about 2 weeks. Those types of opportunities don't come along every day.
For those that are interested, here are the exact trades I made between Jan 24 and Feb 2 when I closed out my position:
- Jan 24 - Bought 1,000 shares @ 44.89
- Jan 24 - Sold 300 shares @ 46.71
- Jan 25 - Sold 400 Feb55 Calls @ 1.55 (great way to extract extra cash with implied vol spiking)
- Jan 26 - Bought back 400 Feb55 Calls @ 0.55
- Jan 26 - Bought back 300 shares @ 45.11
- Jan 27 - Sold 400 shares @ 47.155
- Jan 28 - Bought back 200 shares @ 45.56
- Jan 31 - Sold 400 shares @ 46.43
- Feb 2 - Bought 200 shares @ 49.80
- Feb 2 - Sold 300 shares @ 50.22
- Feb 2 - Sold 300 shares @ 51.47
Of course, the stock continued to climb this afternoon and closed the day @ 53.25, so one could argue that I left some money on the table. I'm ok with that. I had a strategy when I entered the trade and I followed it. I will not have any regrets if it trades to $80 by the end of the week.
Good luck and good trading.
Wednesday, February 2, 2011
The Long And Short Of It - Wednesday
P&L Summary
Trading Accounts: -0.3%
LT Accounts: +0.3%
My P&L saw some crazy swings today, but by the end of the day I basically broke even. Given how volatile some of my positions were I'll take that as a victory. My strategy today was to take some profits off the table where it made sense and raise a little cash for future opportunities.
My Trading Accounts were flat for most of the day. Losses in ENOC and WPRT longs and JASO short were offset by gains in MCP. Molycorp was a big winner for me today. In fact it could have been a bigger winner but I took profits at 50.22 and 51.47 and then watched it continue to rise and close at 53.25, up 4.65 on the day. But I can't dwell on missed opportunities - it hit my target so I took my profits and ran.
My LT Accounts were down for most of the day as early losses in SIO.V dragged down the portfolio once again. However by the end of the day SIO.V losses were trimmed to "only" 1.8% and late day rallies in HUD.V (+5.2%), NEM.TO (+3.6%) and GWG.V (+18.3%) helped result in net gains for the day. Too bad my position in GWG.V is relatively tiny relative to most of my other positions.
Activity Highlights
Trading Account:
Day-Trades:
Trading Accounts: -0.3%
LT Accounts: +0.3%
My P&L saw some crazy swings today, but by the end of the day I basically broke even. Given how volatile some of my positions were I'll take that as a victory. My strategy today was to take some profits off the table where it made sense and raise a little cash for future opportunities.
My Trading Accounts were flat for most of the day. Losses in ENOC and WPRT longs and JASO short were offset by gains in MCP. Molycorp was a big winner for me today. In fact it could have been a bigger winner but I took profits at 50.22 and 51.47 and then watched it continue to rise and close at 53.25, up 4.65 on the day. But I can't dwell on missed opportunities - it hit my target so I took my profits and ran.
My LT Accounts were down for most of the day as early losses in SIO.V dragged down the portfolio once again. However by the end of the day SIO.V losses were trimmed to "only" 1.8% and late day rallies in HUD.V (+5.2%), NEM.TO (+3.6%) and GWG.V (+18.3%) helped result in net gains for the day. Too bad my position in GWG.V is relatively tiny relative to most of my other positions.
Activity Highlights
Trading Account:
- Sold 30% of GLW @ 22.89 (+16.3%)
- Sold MCP @ 51.47 (+14.7%)
- Sold AMZN @ 172.70 (+3.68)
- Sold EUO @ 18.98 (-1.0%)
- Covered JASO short @ 7.32 (-3.1%)
- Bought ENS @ 32.85. Looking for a break above 34 which will target 36.50. Stop under 32.
- Bought COHR @ 53.64. Really like the way this one gapped up on volume last week and has shown no intention of even partially filling the gap. This is a stock that still wants higher.
Day-Trades:
- Bought MCP @ 49.80 and sold them @ 50.22 (+0.8%)
- Bought WPRT @ 16.14 and sold them @ 15.74 (-2.5%)
- Sold EPS.TO @ 3.68 (+10.2%)
- Sold HMG.V @ 4.65 (+15.4%)
Breakout Alert! - GWG.V
Great Western Minerals (GWG.V). Rare earth play I tweeted about yesterday. I am long @ .91. Targtet 1.25.
Stock Charts For Wednesday
5 Bullish / 1 Bearish
Apple (AAPL). Looks like its headed to new highs, but want to wait for a break above 350 before getting long. Seems to like to consolidate in a 20-25 range, so target 370-375 on a break.
Coherent (COHR). Gapped higher on Friday on massive volume. No attempt to fill the gap even a bit. Each day closes above its open. Wants higher. Target 60.
Enersys (ENS). Coiled and ready for action. Watch for a break above 34 on volume. Target 36.50 then 38.50.
Ultrashort Treasury ETF (TBT). The experts have been saying that yields have nowhere to go but up for a couple years now. Look like they may finally be right. Watch for a break above 40 to target 43 initially.
Westport (WPRT). This stock has been trying really hard to put in a floor @ 15.50 over the past 2 weeks. Renewed concerns over the security of future oil supplies and the need for a natural gas energy policy could put this one in focus again. MACD and RSI turning up. Good risk/reward here, but under 15.50 get out fast.
Monster Worldwide (MWW). After dropping 20% on Q4 earnings miss on Friday, MWW has barely been able to bounce. Bearish engulfing candle today, and closed below its 200 day ma. Particularly concerning given the strength in the overall market. Initial target 13.50.
Apple (AAPL). Looks like its headed to new highs, but want to wait for a break above 350 before getting long. Seems to like to consolidate in a 20-25 range, so target 370-375 on a break.
Coherent (COHR). Gapped higher on Friday on massive volume. No attempt to fill the gap even a bit. Each day closes above its open. Wants higher. Target 60.
Enersys (ENS). Coiled and ready for action. Watch for a break above 34 on volume. Target 36.50 then 38.50.
Ultrashort Treasury ETF (TBT). The experts have been saying that yields have nowhere to go but up for a couple years now. Look like they may finally be right. Watch for a break above 40 to target 43 initially.
Westport (WPRT). This stock has been trying really hard to put in a floor @ 15.50 over the past 2 weeks. Renewed concerns over the security of future oil supplies and the need for a natural gas energy policy could put this one in focus again. MACD and RSI turning up. Good risk/reward here, but under 15.50 get out fast.
Monster Worldwide (MWW). After dropping 20% on Q4 earnings miss on Friday, MWW has barely been able to bounce. Bearish engulfing candle today, and closed below its 200 day ma. Particularly concerning given the strength in the overall market. Initial target 13.50.
The Long And Short Of It
P&L Summary
Trading accounts +2.3%.
LT Accounts: -1.3%
Same story today as most of January. Trading accounts had a great day, but certain strategic positions in the LT accounts continue to bleed. Technically these positions should probably have been cut a few weeks ago, but they are long-term in nature so I am trying to give them some time. This goes against my general trading strategy, and the trading gods are reminding me of that on a daily basis.
Molycorp (MCP), Epsilon Energy (EPS.TO), Mega Uranium (MGA.TO) and Hana Mining (HMG.V) were some of my better performers, each rising between 4-6% today.
Not a lot of actual trading activity however. Simply added a few positions. First day in a while where I didn't unwind anything.
Trading Accounts:
Trading accounts +2.3%.
LT Accounts: -1.3%
Same story today as most of January. Trading accounts had a great day, but certain strategic positions in the LT accounts continue to bleed. Technically these positions should probably have been cut a few weeks ago, but they are long-term in nature so I am trying to give them some time. This goes against my general trading strategy, and the trading gods are reminding me of that on a daily basis.
Molycorp (MCP), Epsilon Energy (EPS.TO), Mega Uranium (MGA.TO) and Hana Mining (HMG.V) were some of my better performers, each rising between 4-6% today.
Not a lot of actual trading activity however. Simply added a few positions. First day in a while where I didn't unwind anything.
Trading Accounts:
- Added to EnerNOC (ENOC) position @ 25.91. Went long initial piece yesterday @ 25.72. This stock looks to have put in a double bottom. Closed @ 26.10. The positive divergence on the RSI and MACD is also an encouraging sign. Initial target = 29. Stop under 24.50.
- Shorted JA Solar (JASO) @ 7.12. With both the market and other solar names like FSLR screaming higher, JASO has been an absolute dog. Really looks like it wants to break below its 200 day ma @ 6.74 and target 5.50 initially. It closed @ 6.93. However after the close it announced a 400MW supply deal and the stock jumped to 7.10. I will likely see how the market reacts during the first 1/2 hour before doing anything on Wednesday.
Long Term Accounts:
- Added to Sensio 3D (SIO.V) @ 1.13. This is one of the LT names that has been slowly bleeding through much of January after posting nice gains in December.
- Went long Great Western Minerals (GWG.V) @ .91. This is a rare earth play that has a lot of potential. I missed the breakout above .70. It has traded as high as 1.00, but pullbacks have been shallow. This is a fairly small position due to the entry level and the fact that my stop will need to be under .70 .
Tuesday, February 1, 2011
3D TV - A Contrarian Investment Play
I mentioned two things in the very first paragraph of my very first blog:
- I am generally a late adopter when it comes to technology
- I own a 3D TV
Admittedly these are seemingly two contradictory statements, given that only a very small percentage of the North American population currently own 3D TVs. I likely wouldn't have bought one (yet) in it weren't for the following:
- I got a fantastic deal on the TV
- I really, really wanted to play 3D video games on my PS3
Did I need a 3D TV? No... Did I even need a new TV? No... Do I love my 3D TV? YES!
In my research and in speaking with people on the subject it is clear to me that the vast majority of the population have zero interest in buying a 3D TV, or to be more specific, they THINK they have zero interest in buying a 3D TV.
Common statements I hear include, among others:
- 3D is just a gimmick
- I just upgraded to a HDTV a couple years ago
- Watching 3D gives me a headache
- I will look silly wearing 3D glasses in my home
- Why would I want to watch the news in 3D?
I'll address each of the points above, provide my own opinion, and suggest some possible trading ideas to benefit from the upcoming 3D TV wave.
3D Is Just A Gimmick
Those who make this statement usually point to the fact that 3D seems to show up every decade or so and then disappear as quickly as it appears. Those who make this statement fail to recognize that 3D movies in the 60's or 70's have little in common with the current 3D environment.
For one, the technology is completely different. Polarized, or shutter glasses technology bears little resemblance to the old red/blue paper glasses of old. The effects today are far more impressive and immersive than the effects achieved several decades ago. Two, manufacturers have only just recently been able to affordably produce TVs capable of showing high definition stereoscopic images in the home. And three, never before have the major movie houses and equipment manufacturers invested so much in 3D technology. These companies have an incentive for 3D to stick around, and are going to continue to put a lot of effort into it to make sure it does.
I Just Upgraded To A HDTV A Couple Years Ago
Ok, this argument has some validity. Not everyone is ready to go out and buy a new 3D TV this year. But the fact is that those who decide to wait are actually MORE likey to buy a 3D TV (eventually), since it is likely that in 2-3 years time virtually all TVs sold will be 3D ready. Just like today virtually all TVs are HDTVs vs. standard definition.
Watching 3D Gives Me A Headache
This argument is the most sound. Statistically, 10-15% of the population has some sort of problem watching 3D images comfortably. Of course these 10-15% also tend to be the most vocal about their hatred of all things 3D. Nobody said that 100% of the population needs to want 3D in their homes. And just because someone does not enjoy 3D themselves does not mean that their husband, wife, or children do not enjoy it. How many parents have no interest in video games, yet shell out thousands a year on gaming systems and video games for their kids?
I Will Look Silly Wearing 3D Glasses In My Home
This one I actually don't understand at all. I mean really? Most of the population is butt ugly to begin with, and just as many have zero fashion sense. But their main concern about 3D is "looking silly" in their own homes? I understand that 3D glasses are uncomfortable for some people, but we are already starting to see 3d party companies coming out with lighter and more stylish glasses, so I don't really see this as an issue in the long run.
Why Would I Want To Watch The News In 3D?
Those who make this argument are completely missing the point. Even once the majority of TVs sold are 3D capable, most time will still be spent watching 2D. 3D will generally only be used to watch certain movies, sporting events and video games (and possibly porn).
So Does 3D TV Have A Future?
Why is it that 3D TV sales have generally disappointed to date? It all comes down to content. Quite frankly there just hasn't been enough 3D content available to make purchasing a 3D TV a rationale choice for many. I believe that is about to change in 2011. For one, there is going to be many more 3D movies released on Blu-Ray this year. Second, more and more broadcasters are beginning to experiment with 3D channels and 3D video on demand. Thirdly, 3D video games are just beginning to hit the market.
In fact, it's my belief that 3D video gaming will drive 3D TV sales as much if not more than movies and sports in 2011. Most of the early 3D video games had the 3D added to them at the end of the process. While the next batch of blockbuster video games due to be released have been designed with 3D in mind from the very start. The first of these games to be released for the PS3 will be Killzone 3 in late February, and then Crysis 2 in March. Uncharted 3 will be released later in the year. These games all have the potential to be game changers when it comes to 3D video gaming.
Another thing to keep in mind is that the adoption rate of 3D TVs so far has actually been faster than it was for HDTV at this point in its cycle. People tend to forget how long it took for people to buy into HDTV when it first came out. The early adopters loved it, but many couldn't justify the higher cost, and HDTV had the same issue with limited content at first. Fast forward 5 years and almost everyone has at least one HDTV in their home.
Investment Opportunities in 3D TV
If you believe as I do that the potential for 3D TV sales is underestimated by the market, how can you position your trading portfolio to capitalize?
One strategy would be to buy the names of TV manufacturers and TV component manufacturers on the assumption that 3D TVs will drive TV sales in general. Some of my favorites in this category are Sony (SNE), Panasonic (PC) and Corning (GLW).
Of these three, GLW is my favorite as its Gorilla Glass is being incorporated into many of the new lines of TVs, including Sony. GLW's chart is also breaking out. I am long GLW from 19.68.
Sony is the leader in 3D home entertainment. This will either be a big win or a colossal failure depending on whether people eventually buy into 3D or not. So I look at Sony as a leveraged play on 3D in the home.
Panasonic is generally considered to make the best 3D TVs available.
The charts for both Sony and Panasonic however are neutral to bearish at the moment, so I would take a wait-and-see approach with these ones, with the intent of buying them once the trend begins to turn higher. 3D TV is a 2011 story, so the current negative sentiment isn't something I expect to change overnight.
Another play I really like is Sensio (SIO.V), a small 3D technology company based in Montreal, Canada, and listed on the TSX Venture Exchange. This company has numerous patents on 3D compression technologies, which allow television broadcasters to send 3D signals across existing 2D channels, among other things. They recently signed a deal with Videotron in Quebec and are expected to sign similar deals with other TV broadcasters. As well, Sensio has patents on various 3D recognition and switching technologies that could be licensed by major 3D TV manufacturers, such as Sony, Panasonic and others. They already have a major contract with Vizio to supply the 3D chips used to decode the 3D signal in all Vizio 3D TVs being produced. Vizio recently announced a polarized 3D TV that does away with the need for shutter glasses, which allows viewers to watch 3D on their TVs with the same inexpensive glasses that most movie theatres use.
Sensio's stock price has been drifting lower in recent weeks and has fallen back to the bottom of its recent range to around 1.10 as of today's close. As with Sony and Panasonic, this one may not turn around overnight, but there is the chance of a substantial gap higher if they sign a deal with another TV manufacturer over the upcoming weeks (which is a definite possibility given comments by Sensio at the CES in Las Vegas in January). I have therefore been buying shares in SIO.V between 1.13-1.25 in some of my longer-term accounts and am willing to wait out the turnaround. For what its worth, I am aware of two analysts that follow Sensio and each of them have a $4+ price target on it.
Longer-term Sensio is also a potential takeover target, especially at current price levels.
First Blog - Introduction, January Trading Recap, Egypt Turmoil
Introduction
The question is, where is the best place to deploy new money?
Another way to play the turmoil and spike in oil prices is in the alternative fuels space. Possible names there include Clean Energy (CLNE) and Westport (WPRT). From a technical perspective both of these names look pretty ugly, and up until today had actually been short CLNE. However I think the current situation has the potential to put one or both of these names in play again. I picked up some WPRT today around 15.81 on the TSX (WPT.TO). Stop under 15 bucks. This is definitely a case of trying to catch a falling knife, so be careful and don't ignore stops!
With the exception of 3D TV, I tend to be a late adapter when it comes to technology. That doesn't mean I am unaware of new technologies, I am just usually late when it comes to actually embracing the technology. So it should come as no surprise to anyone who knows me that I would wait this long before attempting a blog myself (according to my quick google search, blogging has been around in its current form for over 10 years).
This blog is going to be a bit of an experiment. I have a rough idea of what I want it to look like, but no doubt it will transform itself into something completely different over time. And if nothing else, it will provide me with an additional avenue to work through my trading strategies as I summarize them here.
So, without further adieu, here we go...
January Trading Recap
January is officially in the books now. Looking back it was a mixed month for me. I manage several accounts for myself and others. At a later date I will try to summarize my different trading strategies, but for now these accounts can generally be categorized as either Trading accounts or Long-Term accounts.
My Trading accounts performed very well in January, up 13.7%. These accounts have been up in each of the last 8 months (they have averaged gains of 11.7% per month over that period).
My Long-Term accounts did not perform as well, and were actually down 6.5% for the month. Much of these losses were just giving back gains seen in December, but losses nonetheless. One thing to note is that while these accounts are "long-term", they are not necessarily all conservative. Some of these accounts can be very concentrated in individual sectors, or even individual stocks, so P&L swings in these accounts can at times be even more volatile than my Trading accounts.
My focus when it comes to this blog however will primarily be on my Trading accounts, as that is where most of my activity is focused on a day-to-day basis.
Egypt Turmoil - Trading Ideas
I'm not going to pretend that I am an expert on everything that is going on over in Egypt. Obviously I see the same news that everyone else sees, and have seen the markets react to this news like everyone else.
As far as Egypt's impact on North American equity markets? I subscribe to the view that Egypt was just an excuse for traders and investors alike to sell stocks after 5 straight months of gains. Has this presented a buying opportunity for those clever (or lucky) enough to raise some cash along the way? Absolutely.
I have a couple of ideas on that, and they all revolve around a "made in America" energy policy.
Some people, like T. Boone Pickens, have been pushing hard over the last few years for an American energy policy that puts an emphasis on natural gas. Outside of a few references to natural gas in some of his speeches, Obama has done little to move forward on such a policy.
Almost anyone in the energy sector I speak with tells me that utilizing natural gas as a fuel makes perfect sense in US. Maybe the turmoil in Egypt will give the president reason to reconsider his priorities. And even if it doesn't, it should give the markets reason to have hope.
That being said, I am not necessarily a bull on natural gas prices (at least not yet). Certainly the cold winter has helped to chip away at the natural gas in storage in the US and to put a floor on spot prices. But the fact remains that there is still more supply than there is demand, so in the short term I do not expect the front month futures contracts to jump much on this news.
However, in the long-run, if natural gas is given serious consideration by the president, natural gas producers will stand to benefit. A number of these companies have either already, or are on the verge of breaking out, which makes me all the more interested in them. Names I like in this space include Petrohawk (HK), Devon (DVN), Chesapeake (CHK), Range Resources (RRC) and Southwestern (SWN). I went long Southwestern today @ 39.47. Target on SWN is 45, stop under 38.50.
SWN Chart: (click to enlarge)
Another way to play the turmoil and spike in oil prices is in the alternative fuels space. Possible names there include Clean Energy (CLNE) and Westport (WPRT). From a technical perspective both of these names look pretty ugly, and up until today had actually been short CLNE. However I think the current situation has the potential to put one or both of these names in play again. I picked up some WPRT today around 15.81 on the TSX (WPT.TO). Stop under 15 bucks. This is definitely a case of trying to catch a falling knife, so be careful and don't ignore stops!
WPRT Chart: (click to enlarge)
Good luck and good night,
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