Hi Everybody - I'm expecting a FERC game also - but we just had one of those in RRI, and many people saw how it snapped back. Also, RRI and other put out press releases stating their case.
I don't think it will happen the same way for the next FERC scare - so I'm holding all my UTes. Also, I can't get in and out fast enough ;-)
I think one set of hedge funds/players will short the Utes, try to drive the stocks down to make quick money, maybe pick up the stock cheap.
Another set of hedge funds people will buy into that, having done homework and knowing that FERC issues are most likely to be minor. They just might wait until all the shorts are out, then try to push the price up hard to make money at the expense of the shorts....
I note that Moody's downgraded Duke (DUK) last week and it hit the stock for one day, now the downgrade doesn't seem to have much effect.
I think the group of UTes will be much higher in about 2 months, so I will just hold on.
Overbought / Oversold works best when there aren't big flows of money into or out of the market. Internet stocks went to oversold and stayed there while the prices dropped. Now that money is comming into the market, expect that overbought signal will tend to persist longer than normal while the stocks climb. For the Utes that have re-finanaced, money is definitely comming in for those stocks.
If you see a buying opportunity, go for it.
Best of Luck to everyone, energyplay |
