THURS. AUG. 28 THOUGHTS

A trading range is the difference between the high and low prices of a stock or market during any given period of time. Trading range markets are the hardest to trade because prices are continually fluctuating, but never really going anywhere. It is akin to a sports team who is supposed to be either really good or really bad for the season, but finishes up winning almost exactly half their games. Different people have different expectations in awaiting a move, but the team is merely mediocre rather than extraordinary one way or another. This is the exact situation that the market is in now. Worries abound such as whether FNM and FRE will survive and whether oil will rebound. Hope also abounds with features such as people thinking FNM and FRE will survive and a thought process that oil has topped out. The more variables in the pot, the longer the timeframe. Thus, it is important when doing day trading to maintain the ‘day trading’ mentality and go with what works rather than how one feels about the macro picture.

Markets throughout the world are generally higher – both equities and commodities. The tone looks to be very strong though with FNM, FRE, and MBI doing very well pre-open.

Reiterating-If the whole story is not there -
If something is good, assume either a short thru unchanged or an A-B-A2 based on direction of the market unless specifiedIf something is bad, assume either a buy thru unchanged or an A-B-A2 based on direction of the market unless specified

Good-

MBI- major contract; ABK should follow. BUT BEST TRADES WILL LIKELY BE DONE IN BOTH BEFORE 9AM ET so be careful AFTER 9AM.

FNM- management shake-up; FRE should follow

MW- good earnings

ENER- good earnings

TIF- great earnings

JAS- great earnings

GEF_ great pre-announcement of earnings

DSW- good earnings

Bad-

SHLD- poor earnings

WSM- bad earnings


THURS AUG 28 BEF

DSW .10/353M .37/389M .77/1.46B 1.09/1.61B

ENER .16/77M .26/88M .01/251M 1.48/441M

GCO .04/353M .55/394M 2.13/1.60B 2.46/1.71B

HNP ? ? .04/8.63B 1.33/11.84B

NX .37/238M .33/234M .88/847M 1.14/899M

SHLD .33/11.71B -.49/11.03B 2.34/48.14B 1.99/46.86B

TIF .54/720M .31/691M 2.83/3.27B 3.19/3.57B

VIP .61/2.65B .62/2.85B 2.06/10.24B 2.46/11.95B

WBD .98/772M 1.26/796M 4.48/3.16B 5.76/3.72B

WSM .07/833M .18/870M 1.32/3.75B 1.49/3.88B

ZLC -.57/449M -.87/376M -.27/2.12B .90/2.09B

THURS AUG 28 AFT

ARUN -.01/47M .01/49M .03/177M .17/221M

DELL .36/15.90B .41/16.66B 1.59/65.77B 1.86/69.62B

ESL .66/375M 1.06/414M 3.58/1.54B 4.00/1.66B

JRJC .14/13M .18/16M .73/59M 1.49/111M

MCRS .38/247M .34/245M 1.35/944M 1.60/1.08B

MRVL .21/837M .24/887M .96/3.46B 1.12/3.94B

NOVL .05/241M .06/251M .25/959M .28/999M

OVTI .30/175M .38/197M 1.37/759M 1.41/824M

PETM .28/1.22B .27/1.24B 1.49/5.03B 1.70/5.40B

SIGM .39/59M .51/67M 1.85/255M 2.21/309M

WIND .08/88M .14/94M .49/372M .59/414M


Good luck today.

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