Actions Speak Louder Than Words
Posted on March 16, 2008
Filed Under Profitable Trader |
The major indexes all finished near the bottom of their trading ranges friday amidst the blowup from Bear Stears. The interesting thing is that Wednesday, Bear Stearns CEO Alan Schwatrz was on CNBC stating that the firms’s “balance sheet, liquidity and capital remain strong.” At the same time this was happening, there was extremely high put option activity indicating the smart money thought BSC was headed lower.
Can you believe everything you hear on CNBC? Thursday Bear Stearns disclosed to the Fed that they did not have the liquidity needed to keep things running and they needed a bailout. JP Morgan Chase agreed to borrow money from the Fed to in turn lend it to BearStearns.
On friday with the news out BSC falls 47% to close at $30 on huge volume. This proves time and time again that you don’t listen to what they say but to what they do.
Chesapeke Energy, a company which is involved in the exploratin of oil and natural gas, has been showing some nice accumulation in recent weeks as the stock reaches an all time new high.
Check out the buying by Aubrey K. Mccleaden, Chairman, CEO and Director.
3/5/08 306,000 shares at $46.28
2/29/08 100,000 shares at $45.33
2/28/08 100,000 shares at $46.18
2/27/08 148,770 shares at $45.89
2/26/08 192,400 shares at $46.30
1/25/08 100,000 shares at $36.28
1/24/08 100,000 shares at #36.51
1/22/08 124,500 shares at $36.27
8/10/07 100,000 shares at $33.44
6/26/07 101,500 shares at $34.84
6/7/07 100,000 shares at $36.05
5/10/07 100,000 shares at $34.21
3/29/07 100,000 shares at #31.18
3/23/07 200,000 shares at #30.62
Obviously, she thinks the price is going higher. Not to mention, with oil trading over $110 the oil and gas stocks are one of the only groups showing signs of strength along with gold and silver stocks. I would not get in right now since the stock is overextended but I will get in if it pulls back on lower volume.
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