Unexpected events create price shocks like we are currently witnessing. Lot of the price shocks we are witnessing today are related to mergers and private equity deals. Many of these kind of price shocks benefit only those who are positioned for them.
But sometime they also offer easy money making opportunities. After looking at the merger/bids action in steel last Friday I had steel stocks on my watch and already had position in X. Today when I saw IPS gap up , it was just easy few hours trade for few points, I did not want to hold it as I already had position in X. So while I am primarily a reactive trader, currently I am also anticipating few moves. That works in current environment. The objective is to maximise profit while the party lasts.
One of the tricks I have learned over the years is that when markets go in such momentum phase is to concentrate on high priced stocks for short term trading as they give you 4-25 points in a matter of days during such environment.
Here are some of the things I am watching or has position in.
ACOR,Acorda Therapeutics Inc
AGN,Allergan Inc
ASCA,Ameristar Casinos Inc
ATI,Allegheny Technologies
BXP,Boston Properties Inc
CRDC,Cardica
CYBX,Cyberonics Inc
IPS,Ipsco Inc
ISRG,Intuitive Surgical Inc
IYR,iShares Dow Jones US Real Estate Index Fund ETF
MNT,Mentor Corp Minnesota
NTST,Netsmart Technologies
STLD,Steel Dynamics Inc
VNO,Vornado Realty Trust
X,US Steel Corp
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