AIG

I just sent out the following message to my private email list and since I did good here, I'm going to share it with everyone, sort of a marketing thing.   All you need to know is that on Saturday I sent out a "Weekend Update"  two Long ideas and three Short ideas for the coming week.  AIG was one of the Short ideas.

We may have stumbled into a nice trade here with AIG.  Attached below are the Daily and Weekly charts which I hope should make my point simply by observation.

Today's trade was to Short AIG at or near the Open @ 27.96.  It finished the day on its lows at 25.78, for a gain of about 7.7%.  Respectable, yes, but these two charts taken together suggest much lower prices ahead.  A test of the early February low of 21.54 seems possible here and if that gets easily taken out, we need to take a real hard look at the possibilities of AIG in single digits again.

We will never know when one of these "Trades of the Week" turns into a blockbuster trade, but some will, its inevitable.  Whether its AIG or not, we will soon find out.  Although it looks weaker here to me, just in case, keep a stop at about your entry price, or at the Reversal trigger on the Daily chart which is tonight at 27.54.

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 AIG Daily

AIG Weekly