Wall Street Crack

For Those Addicted to the Wall Street Game

Archive for March, 2011

10 Companies Affected by the Disaster in Japan via @wallstCS

Posted by Dino on March 20, 2011

Wall St Cheat Sheet posted 10 companies with the greatest exposure to Japan and may be greatly affected by the disaster.



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A lot of catchin’ up to do….

Posted by Dino on March 17, 2011

Busyness had kept me from updating for a while.  Now that March Madness is upon us, I’ll be able to sit down an actually catch up on things while watching the Spartys make their Final Four run!  Keeping fingers crossed but not betting the farm on it.

Anyway….Tragedy in Japan, unrest in Bahrain (and most of the rest of the Middle East for that matter) and worldwide nuclear fears has sent us on a crazy roller coaster ride.  Updates and reviews will come in the next couple of days as I sip on some tasty beverages.

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Some Facts About Michigan “Emergency Financial Manager” Legislation

Posted by Dino on March 13, 2011

3/23/11 Update: If you’re stopping by for the first time first of all, thank you.  Since posting this on 3/13 we have had some very good exchanges of ideas in the comment section below.  The initial paragraph is only a very small portion of the entire conversation.  So please, read on to get the big picture.  Thanks, Dino.

I’ve seen a lot regarding this issue in the past couple of days and had similar concerns so I did what most people don’t do and researched it beyond what sound bites the media and partisan activists produce.  The video that has gotten the most coverage was a piece that Rachel Madow of MSNBC did on her show last week. I was not surprised to find that most of the claims were misleading and false. I read most of the actual bills, both the old Public Act 72 and the updated proposed legislation. Regulations are a big part of my job so I’m pretty used to reading them rather quickly.  I do actually have a life and don’t read regulations just for the fun of it!

Please understand that this is not necessarily an argument for or against the proposal but simply putting the facts out there so an opinion can be developed from what is truly happening and not what Rachel Madow tells us to think.

First, we must understand that this is an update of an existing act titled “Public Act 72” in which many responsibilities and requirements of the Emergency Financial Manager are laid out….including removal of elected officials if they have been found to have gross neglect of duty. Public Act 72 was signed into law by Democratic Governor Jim Blanchard 1990 and about 6 or 7 cities/townships and 1 school district (Detroit Public Schools) have been deemed in Financial Emergencies between Republican John Engler and Democrat Jennifer Granholm. In this existing legislation and the revision currently in the legislative process, there are checks and balances in that the State Treasury, The Legislature and The Governors office have review processes in place for many aspects of this regulation.

The Governor cannot simply and arbitrarily declare a municipality or school district to be in a financial emergency. There are 3-4 pages of conditions that can even trigger an initial review that has to happen prior to a Financial Emergency can even be declared. This review can take months or even years to conduct pending findings and appeals. Also note that during this time the situation can resolve itself if the municipality takes care of the financial situation prior to review completion.

Apparently the change that people are getting worked up about is the power of the Emergency Financial Manager in the update to modify or amend existing municipal contracts. This is very similar the power to merge government services with those of surrounding services. This just happen in the City of Pontiac, which is currently under EFM oversight.  The Pontiac Police has been eliminated and they are now being absorbed by the Oakland County Sheriff.  The Pontiac Police Union even approved of it.

Here is another article taking the support position to give a bit of balance to the “Michigan Messenger” website piece.

It appears that this bill mainly gives a bit more bite to the existing EFM position powers and does not necessarily create any new, anti-democracy powers as some think it does.

Now that some of the facts are established, debate on.

Posted in Politics | 35 Comments »

Struggling to Tie Your Shoes? Excuses Begone – via @crosshairtrader

Posted by Dino on March 13, 2011

Everyone needs a bit of motivation.  Especially in the investing/trading world.

I watched this video this morning posted on a really good blog called http://www.thecrosshairstrader.com/ I highly recommend checking it out as he has really great insight to the markets.

Posted in Motivational | Leave a Comment »

$CTXS Bounces off Ascending Trendline

Posted by Dino on March 10, 2011

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Ya win some, ya lose some. $JDSU $FNSR

Posted by Dino on March 8, 2011

You had to have known JSDU was a violent one.  $18 to $29 in just over a week?  Yep, this one can move.  It was plainly obvious.  You absolutely have to know and realize this kind of thing before entering a trade of any type.  Not saying I expected something like this though.  FNSR down almost 40% after hours?!?!?  JDSU down around 14% even though it reported great earnings and slightly raised guidance just over a month ago.  Have things changed THAT much in just 1 month?  I don’t know for sure.  I would expect JDSU to gap down not much less than $22 tomorrow morning and buyers will swoop in to buy that weakness.  I’m just keeping in mind that the market doesn’t care what I think and I may be absolutely wrong.

I am long JDSU a full position but a full position relative to its volatility.  If it opens up much lower than $22 I’ll be pushing the limit of my overall risk tolerance.  It’s going to open lower that’s for sure.  The only question is how much lower and how will I work my exit?   Pretty much as I always do in situations like this.  If a stock opens up lower than my stop I will usually wait out the first 30 minutes of trading and watch the action.  If it settles near its open by that time I’ll set a stop at the lows and continue to raise up the stop.  If it continues down on heavy volume I’m gonna have to get rid of it no questions asked.  Take my loss like a man and prepare for the next trade better equipped than I was yesterday.

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Possible Swing Entries For Next Week: $APKT $DECK $LEN $MTW

Posted by Dino on March 6, 2011

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New Trade: Long $NFLX

Posted by Dino on March 5, 2011

This past week I had been keeping an eye on NFLX and its pullback after a stellar earnings report.  It had pulled back to its 50 day SMA which coincided with an important psychological level of $200.  For the past couple of days it had traded between $200 and $207.50 not seeming to be able to break out above $207.50.  That was the level to watch.  A break above that would likely to lead to higher levels.










Friday morning I was a bit of a quandary, though, with the general market dropping and NFLX surging on large volume.  Wasn’t sure what to do at that point.  Market down, NFLX up strong?   Figured that I’d just go with it.  I generally don’t like trading in the first 30 minutes of the market open.  Things get crazy and prices can do wild things.  NFLX blew through my 207.50 level as the market remained down.  Shortly after 10 am est the market continued to pull back but NFLX only dropped a little back to its volume weighted average price (VWAP).  If you’re not familiar with VWAP and how it can be use, go check out a couple of articles written by Brian Shannon of Alphatrends.net.  VWAP Article 1 VWAP Article 2 They are definitely worth you time.  If you’re thinking that VWAP is only useful for day traders well, think again.  It can be useful for improving entries into swing positions such as I did here.  During the market pull back NFLX only pulled back to its VWAP and bounced off nicely so I took this as a sign to buy.  My entry was at $209.88 and NFLX stayed strong despite the weakness in the general market.  I kept it about a half position size to reduce risk since things are looking a bit questionable overall.

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Wow…What Strength $JDSU $NFLX $CTXS

Posted by Dino on March 4, 2011

Things got a bit ugly earlier to day but it didn’t really seem to phase JDSU at all.  NFLX (will blog my entry later) broke out from the open and has held nicely.  CTXS has been a bit shaky but still is showing impressive strength in this nasty tape.

Notes are on charts.

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My Ex didn’t gain 50 lbs and looks hotter than hell. Reasons to not look back at old trades $ACTG $Study

Posted by Dino on March 3, 2011

Everybody breaks up with someone.  Some where by choice and others weren’t.  The ones that probably hurt the most are when the decision was made for us.  It happens to everyone and there’s no shame in it.  You’re down in the dumps for a while with a bit of self-pity.  Maybe a couple good whiskey soaked benders and you get back on your feet.  Life goes on but in the back of your mind you’re thinking “I wonder what she’s up to?”  You maybe haven’t seen each other since.  A little guilty resentment creeps into the back of your mind and you imagine her bloated and chubby.  Not at all they way she looked when you were together.   Life didn’t treat her so well and you’re revengeful self says “That’s right….you’re doing terrible without me.  You’re loss!”  It starts eating at you and you really wonder what she’s up to.  You start searching through Facebook thinking her profile pic will magically appear like it has as it played out in your mind a dozen times and she is hardly recognizable to you.  You type her name and Facebook quickly searches though similar names and the closer to finishing her name a recognizable mug rises to the top.  You click on it eagerly hoping that she didn’t make all pics private.  As your computer loads the page you see her pics and immediately your jaw drops to the floor and your heart pounds out of your chest.  Oh…..My….God.  Not only does she look good, she looks spectacular.  She finally started working out a bit and lost a bit of weight and worse….she looks happier than she ever had before.  “Damn….should have just let it be” you say to your self.

I pulled up a chart of $ACTG today thinking it would be sub $20 and just pitiful looking.  This is what I saw.  Ha!  What a kick in the nuts!

The good thing is that the older you get the less likely you are to have these immature regrets and vengeful feelings.  you may be able to think “Well, good for her.  Wish her the best.”

Likewise, the more you mature in your trading life you get the more likely you just look at something like this, shrug your shoulders and think to yourself “Huh….Who’da thunk it! Glad I didn’t get my ass kicked on that drop to $22.”


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