Sometimes you just have to wonder how much market participants want to run ahead of future. The key reason for today’s pre-market rally is attributed to Chinese economy slowdown and hence the expectations of a stimulus. And there is “hope” about the solutions for the Euro Zone crisis…and so on. S&P 500 Mar futures (ES Mini) just rallied above 1,300 and other indices are following suit. Whatever be the outcome, there are some real bearish patterns are emerging on almost all the major indices. I shall post about that later on.
Over the weekend, Costa Concordia ran aground and capsized off the Italian coast, killing at least six. I hope your family and friends are safe. The Costa Concordia hit rocks near the island of Giglio on Italy’s west coast late Friday, the first night of sailing for the holiday makers on board. The search for survivors is ongoing. Carnival Corporation CCL shares are down almost 15% in the pre-market trading, as the company said it expects a hit of up to $95 million to 2012 earnings.
While it may not sound nice to talk about trading ideas emerging from this terrible tragedy, sharing purely from a trader’s perspective, if Carnival Corporation CCL drops to $27-$28 area, I might open a quick short term swing trade. Pls note that there might be some selling pressure due to this event and hence one needs to have a tight stop loss as well. If CCL will drop below $26, I’ll be out.
While such incidences itself are heart breaking , abrupt selling of companies involved provides swing trading opportunities for contrarian traders.
Disclaimer– Pls do your due diligence before investing any money behind this idea. I don’t have any position on CCL as of this writing, but I might open/close anytime without any notice.
Profitable Trading, OP