Futures pointing down again as global markets sold off over night. In fact Japan had one of its worst days ever in over two decades dropping 9.38%. Europe also had some pretty nasty declines as well.
We’ve posted a chart for shorting that we believe will provide a good risk/reward for traders. UFI of all things makes ‘yarn’. Exciting huh? They are a small-cap company that in the last three days has started to show rapd deterioration. Since August they have more than doubled and while we don’t believe in trying to short a stock that is moving like a freight train, the technical picture over the past few days has dramatically weakened.
By the way, don’t be surprised if at some point today you see the Fed jump in with a rate cut. Not sure if the impact will be all that significant at this point. Nonetheless, if it doesn’t happen today, you can count on it happening real soon. I’d be shocked if Bernanke waited until the next Fed meeting later this month.
Update: Speak of the deveil – looks like the Fed gave the markets that rate cut – eat your heart out Cramer!
Update II: Sold short shares of UFI @ 4.34
Update III: Covered the UFI position @ 3.71
Here’s the UFI chart…