An actual up day yesterday

The move on UPS and the others in that sector were impressive yesterday. As you know we have been bearish on this group for a few weeks and overall the ideas have panned out. Although HUBG & FWRD continue to hold in much better than FDX and UPS.

We are still bearish on the names (although from a trading point of view we would suggest shorting into strength - around 45.80ish on UPS with a tight stop) until a move outside the downtrend. (Expect the research houses to upgrade; always worth a nice bounce too...

The markets ended a three day slide with the pending home sales news; the feeling out on the street that some of the banks toxic assets will be guaranteed by the Obama spending plan may help to move financials up again just like last Wednesday. Although we expect a move higher in the market, the volume has not followed yet (we will need to remember to cover all shorts when this happens as the mass buying will, for a time, take all names higher).

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posted by Peter Greene