A New Link

I feel like this is probably a site that you all know about and I'm late to the party, but check out Finviz for a great page on Industry groups. (h/t "Trader C")

Just click "Screener" and then pick the parameters that you want to screen for. Here's a screen I made for "Residential REITs." Back in the day, we'd pay $1650 a month for Bloomberg terminals that gave us this information... now it's FREE!

Anyway, like I said yesterday, I'm tightening up my layout and my baskets. Knowing exactly which stocks do what, and what stocks they trade lockstep with, is important.

A lot of trading is about making good decisions in the face of constant market uncertainty. But a lot also comes from knowing your shit. You have to put in the work if you want to be successful.

(BTW, what the fuck is wrong with Charlie Gasparino? Charlie... why are you such a dick?)

Russell Rebalancing, June 27th, 2008 (Final Bump)

The past couple of years, the Rebalancing of the Russell 3000 has been a big event for traders. It is a day of huge, exaggerated MOCs and wild moves in otherwise quiet stocks.

In other words, it can make or break you.

So, to get out ahead of the game, I've found the important dates to follow this year.

I'll "bump" this post as we get closer to the dates. I just wanted you to know, loyal Internet readers, that I'm on top of this shit.

So, here are the dates to watch:

June 13th: Preliminary additions and deletions to the Russell Global Index and the Russell 3000 published.

June 20 and 27: Updates to the list of additions and deletions.

June 27: Reconstitution final after the close of the US markets.

Here is a link to the Russell website,"Reconstitution Central."

UPDATE: Here's the list.

A Stock On The Move, ESI

Check out that volume in ESI yesterday.



I guess the story is that investors are beginning to worry about students and their loans. This has hurt the education stocks the past few days. Who knows what happens today, but I'll be watching for movement.

Black Crack

I mean, why look at anything else when these stocks are moving points every day? Below is the index graph. The main suspects are ACI, BTU, CNX and MEE.

Morning Stock Trading Idea

ACI was downgraded today. Check how the volume has recently ballooned. This stock should move today.



NOTE: I'm not recommending this as a buy or sell. I'm merely pointing out that it may be a good stock to daytrade today since I expect movement.

High Short Interest Names

The following stocks have high short percentages. The numbers in parentheses next to the symbol represent the short % of the float. All numbers are from Short Squeeze. I have rounded the numbers up or down accordingly.

The reason I'm posting these is because should we get some type of panic bottom, short covering could be huge. I remember from reading Reminiscenses of a Stock Operator that Livermore looked to cover shorts on huge events or down days.

Also, I just went through the stocks on my screens, not all the stocks on the NYSE. If anyone knows of other good stocks to trade with high short percentages, please share. I didn't include the homebuilders, because I generally stay away from stocks that trade below $15 a share.

Here's some stocks that could see substantial short covering during a market bottom.

VMC (11) RWT (33)
TNH (11) JLL (11)
TRA (18) MBI (37)
PMI (19) PCR (16)
MTG (25) AMG (21)
ABK (35) LAZ (14)
FMD (30) GHL (39)
FED (69) CNS (27)
DSL (59) BSC (16)
UA (32) LNN (16)
AGO (13) ARE (12)
AIT (11) AXE (10)
AZZ (9) ANR (11)

Morning Stock Research

If you've been following along, "the Fly" has been dead on with his market calls over the last month or so.

Still, don't forget his botched calls on ARWR or WGAT.

Anyway, he's been pushing DUG recently as a way to get short oil. If the Cambridge Energy Research Associates are correct, there may be another reason to get short oil. Increased production. Their assertion is detailed in the rather dry, but informative video below.



And below are some other interesting news stories I found today.

Bernanke will testify before Congress today, starting at 10:00am.

Drug Companies Overstate Effectiveness of Antidepressants. Depressing...

The vultures are circling. JPM looking to make a big acquisition?

Merrill Earnings Report Torpedoes Futures Market