Wednesday, December 21, 2011

JEF short trade follow up

Yesterday JEF went parabolic on earnings, which are a joke in financials as they sell liabilities or transfer them and raise liquidity right before earnings (the new window dressing) and then just add them right back after earnings. In any case, I mentioned a trade fading the move up in JEF, it was at a 7% or so profit since yesterday at $13.50 today and I would consider placing a trailing stop on the trade and letting it run a bit more.
 Here was the earnings based run up yesterday, which prompted the short trade idea (for a short term trade).

Here's the 5 min 3C on JEF which went negative yesterday and remains so today. Maybe I would consider taking profits or partial in case it tries to fill that gap, then put the trade back on, it depends on your risk tolerance.

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