Here’s How I Played AMD

During early morning trading hours all of the airline stocks began to appear on
my scanner as possible longs. (I later found out that Delta Airlines released a
statement saying it would raise the cap on its most expensive fares by $100.00
because of persistently high fuel costs.) At this point in the day the DOW was
up about 60 points and oil futures were dropping fast. DAL, CAL, AMR were all
showing up on my scanner with huge bids, which gave me enough confirmation to
take the trade. There was definite opportunity to go long in any of these stocks
and lock in some nice profit.

The best opportunity of the day came in a low-priced stock called Salton Inc. (SFP).
SFP came up over my news reader as being halted. It had recently run up from
1.00 and halted at 1.30. My instincts told me to go long if there was any type
of positive news or confirmation for the stocks early morning rally. While SFP
was halted I did some quick research and realized that SFP had once traded up as
high as 7.50 and that 40% of the shares outstanding were shorts. I believed that
a definite short squeeze was possible. When SFP opened up at 1.40 with some
positive news and a number of bids in the NYSE open book I placed an order to
buy. Throughout the day their were a number of times you could have added to
your position as well as entered into SFP with minimal risk. SFP closed up
193.64% at 3.23. These kinds of gifts do not come along everyday. Tomorrow if
the market holds strong I will be looking for a continuation of the airline
stocks. (especially if oil continues to sell off). I really like AMD through
20.00 because 20.00 seemed to be a level of support from a few months back. Also
be aware of earnings plays in FDC and GE.

Tomorrow if the market holds strong I will be looking for a continuation of the
airline stocks. (especially if oil continues to sell off). I really like AMD
through 20.00 because 20.00 seemed to be a level of support from a few months
back. Also be aware of earnings plays in FDC and GE.