I played intraday this amazing one day runner in ABK. ABK jumped up following MBI news that came in AH yesterday.MBI which has lost its triple-A ratings, will reinsure $184 billion of municipal bonds issued by Financial Guaranty Insurance Co., netting about $741 million in the deal.
During the credit storm, MBIA and other bond insurers have been hit by their exposure to collateralized debt obligations linked to mortgages that have plunged in value. The companies provide insurance against bond defaults, and MBIA and other financial guarantors have been squeezed by higher claims from CDOs and other debt instruments. (Source marketwatch)
I picked up ABK for two reasons- low priced stock and Stochastics was about to turn.
Another main reason was the 6.0 resistance line. I picked the first lot below 6 after market opened at 5.87. Second lot on breakout at 6.03, third lot at 6.16 and fourth lot at 6.23.
Then just let it sail all the way. Sold before market close.
This stock will attempt but right now it is too overbought and is bounc to pullback a bit.
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