I had a few trading ideas over the weekend. When the market opened down over 2% the only thing that I thought worth doing was to sell a few calls. I sold some calls on FedEx. UPS and FedEx have lower shipping volumes whenever people buy less. People are buying less. Not a very sophisticated argument and it is already baked into the price. But it seems like a fairly safe trade.
The other trades I thought about doing where all bullish. They are related to a previous post “The Barron’s Effect”. There were several stocks mentioned very positively this week in Barron’s. How did they do compared to the four and one half percent fall in the overall market?
Baxter International is a medical equipment and supply company. It was up one half percent today.
Waste Management Inc is the biggest trash hauler in the country. One of the feature stories put it on the Green Dream Team of companies since it does so much recycling of the trash it picks up. The market was not convinced, WMI was down 4.4% with the rest of the market.
FPL Group, Florida Power and Light, is an electric utility and has a non regulated subsidiary that produced energy from wind and sunlight. It is another Green Team Member. FPL was down two percent today.
Jacobs Engineering, a third team member, was down ten percent today.
So much for the Barron’s effect of that article
I’m glad that I tested it rather than traded those ideas.
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