Monday, January 3, 2011

$EXEL buy on the dip, covering $XING

Biotech stock $EXEL had a high volume selloff Friday, and while it is still up about 100%(!) since November, it has legitimately turned a corner news-wise (i.e., it will survive).  Worth looking for an accumulation point, anticipating a short-term (one week) bouce.

Recap of last week's trades:
We made 15% on our $XING short, and it's time to take that profit.  It's gapping up today (and will likely fade).  Covering short around mid-day.

Our Airline($FAA)/Energy($PXE) arbitrage we entered for this week may be widened by new fund flows.  We're looking for an exit ($FAA and $PXE are illiquid) and may re-enter is sentiment remains polarized between these two.

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