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CHK: I Missed the Short

July 8, 2008 12:52 AM

arrowdown.jpgI had not looked at CHK in a couple of days. Sorry about that as it was easy money to short it. It hit a high of $74.00 on 07/02 and reversed in a big way. The strange thing about energy stocks is they have been trading inversely to oil and that is one reason i smelled trouble brewing. It was a “tell” as they shouldn’t have been doing that - but were. I thought…hmmm… I smell selling by the big players here as they should be trading higher - but aren’t. I think they see what I have been saying. If prices stay at these levels, there WILL be a severe recession globally and the stocks will plunge. If oil backs off a LOT, we may avert a recession and those stocks could be in trouble off the highs anyhow. Either way, it was time to sell them, as I have mentioned repeatedly lately.

But that is how I see it and how they have been reacting. They are not trading “normally”, that I know.

Anyhow, we have a key SMA not far below on CHK. I wouldn’t short weakness, unless scalping, as I am not sure the reaction. Shorting strength near the high is a given, but we are a long way from that.

Written by Tom@StockBlade.com · Filed Under CHK 

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