Wednesday, June 16, 2010
Horrid opening for Nat Gas
Here's my little theory: Goldman Sachs propped up the market to get its CBOE IPO off the ground yesterday, launching it way, way up. Now that CBOE's launch is done, GS is getting out of a number of stocks, including those in the Nat Gas industry. Right on cue, with so little conviction (volume) in the market on Monday and Tuesday, it's not taking very much selling to see stocks tumble. (This isn't any claim to a perfect theory; GS has a total of four IPOs this week, so a big, long dump of stocks isn't to its advantage.)
WPRT is down 1.96% to 19.08 after hitting a low of 18.61. CLNE is down 2.72% to 17.67. UNG down 2.27% to 8.63. Overbought conditions all around are hitting this sector as hard as expected.
CSTR would make an intriguing catalyst trade on a neutral or bullish day. Not so sure about trying it in this climate.
Just about everything else I'm watching is flat or negative except for a couple of pennies: the aforementioned BBI (0.27 +11.44%) and HAUP (2.51 +3.72%).
Financials are wobbly, as expected. STD is down 2.77% (10.87) and the euro is down 0.36% to 122.62 as Spain issued a challenge to Germany yesterday, asking for stress tests on Euro banks.