Tuesday, August 30, 2011

Is The Stock Market Starting A Rally?

The market had another good day. It wasn't as rocketing as yesterday, but there were some positive signs.

Dow closed  up 20.70 (+0.18%)
Nasdaq up        14.00 (+0.55%)
S&P 500 up       2.84 (+0.23%)

Our watch list performed as expected. Some of the highlights were BAC down 0.27 (-3.22%). Great stuff. And MTG down 0.13 (-4.44%). MTG is still feeling the effects of the housing slump.

One of the really big surprises was CIS. We missed this one big time. CIS was up 0.70 (+12.46%).

Corelogic Inc (CLGX) was another surprise. CLGX closed at $11.35 up $2.56 (+29.12%). We started the day with 5,000 shares shorting at $11.02. This was around 10:45 am. Everything looked fine and dandy. Then after lunch CLGX started to climb. We took 1,000 more shares at $11.07. Then another 1,000 at $11.06; and another 1,000 at $11.25; and finally another 1,000 at $11.43 just before the market closed. This leaves us shorting 9,000 at $11.10. We are hoping and praying that CLGX drops to $10.65 by lunch time tomorrow.

Corelogic is the first company to integrate a consumer's tax return with its Mortgage Builder Software. Income verification is crucial in mortgage underwriting. This product will definitely have an impact in reducing mortgage fraud.

In addition to CLGX falling, we are hoping for BAC to be down about 0.39.

Happy trading and short 'til you drop.

Monday, August 29, 2011

The Stock Market Was Booming Today

Today was a great day for the stock market.

Dow was up 254.71 points.
Nasdaq was up 82.26 points.
S&P 500 was up 33.28 points.

We have the following stocks on our watch list.
We believe that they will present opportunities for short selling.
Stock             Close         Gain/Loss
BAC              $8.39           +0.63 (8.12%)
Bank of America

HIG             $19.42           +2.23 (12.97%)
Hartford Financial Services

VQ              $11.76           +2.78 (30.96%)
Venoco Inc

MILL            $3.65            +1.38 (60.79%)
Miller Energy Resources

CIS               $5.62            +1.12 (24.89%)
Camelot Information Systems

MTG             $2.93            +0.47 (19.11%)
MGIC Investment Corp

We are paying special attention to MGIC Investment. The housing sector still has about another year to recover. Companies in the mortgage insurance are hurting. Radian and PMI Group are facing an uphill battle.

Let's see what tomorrow brings.