TCM Notes : 8/28/09

• The market continues to show it's strength intraday with persistent bids emerging for equities on any weakness. And if the market finally gives way to the weakness there is an interesting opportunity now setting up in the 2x ~ 3x leverage space. SDS and SPXU. The super duper shorts on the SP500. There's about a 7$ differential between the two, but if you are playing with a short bias SPXU may provide a better opportunity.
• KFN looks interesting. I actually listened to their call a few weeks ago, and enjoyed listening to Leon Cooperman go after them for not paying their dividend anymore. These guys supposedly have a book value of 5.79. Which is currently the b/v being purported for C. More upside in KFN obviously based on current market prices. It may continue to rest in this channel area, but watch for heavy volume and a move above 3.20. No overhead resistance on the daily, but the 86dma is resting overhead on the weekly at 6.14. That's our target as it corresponds with b/v.