Brewing storms – Iran and “Ernesto”

Well, it’s Monday, one step closer to Labor Day weekend, and one step closer to normal trading volume, hooray!

On the horizon are two storms developing, the “storm to be named later, Ernesto” which is churning and bubbling near the Windward islands, and everyone’s FAVORITE religious fanatics, the Iranians (they sure put the FUN in Religious FUNdamentalism). What will be interesting is their effect on oil prices in the coming days. I suspect that since Ernesto is not expected to hit the Gulf, then oil prices and oil stocks may fall off for a bit. The Iranian effect will become very, very interesting in the next few days since the UN resolution deadline is looming this week.

There goes WFMI

Well, WFMI spiked .80 at the open and took out my stop loss (30%), darn. It looks like the stock may have found support at $52.25, which was the bottom of the GAP channel formed on 8/1. The real bummer is, right after the stock spiked, it plunged down to -.24, which means I was taken out prematurely…possibly. The MACD and STO look like they may be reversing, so perhaps WFMI found a bottom after all? We’ll see.

Take a RATE hike

I pulled the plug on RATE (12% profit) because the light volume was beginning to move this stock upwards, and I did not want to lose the opportunity to keep this profitable, so I got out and took my money.

The Ernesto effect

Well, XTO had a very good Friday and FTO came down a bit. They are both where they should be in relationship to the trade technicals so I am still in good shape. Having said that, over the weekend the projected path veered away from the central Gulf, so it will have some effect, but since these are NOV trades, there is still plenty of time for future “storm effect.