Infrastructure stocks helped by the overall market

February 3, 2009 by: Chris

Well … I was either wrong or early on my call on the infrastructure stocks that I mentioned yesterday. I suppose I could be late too. My thesis included the news that the stimulus package is only 3.5% infrastructure. I believe the vote happened in the House almost a week ago – hardly trade-able news today. The Senate have not voted yet, and so there is no trade there. No, I have no excuse. I just blew it.

That does not mean that I like these charts any better. The stocks that I have a short-term-short-trade on are not healthy. They have made lower lows and lower highs and benefited from a generally bullish day on the markets.

OK, now I’m rationalizing. If JEC and GVA make some higher highs, then I’ll call myself wrong and close out the trade. But I do believe that there is more pain to be felt in these names.

Volume painted a bullish picture for GVA – this is not unlike the reversal day that financials showed at the end of January. This a single day after a new low was reached. Well, the financials had just made a 52-week low prior to their reversal. GVA is looking stronger today than yesterday for certain. JEC is still looking fairly week to me. Volume dipped. The moving averages seem poised to cross over in a bearish fashion.

We will have to see what transpires tomorrow.

More on this topic (What's this?)

Senate set to push through stimulus package (Real Wealth - Money and Markets, 2/10/09)

Reflections: Stimulus package and Tax Rebates (Saving to Invest, 1/30/09)

Stimulus Package Fails to Excite (Wealth Daily, 2/12/09)

Read more on Granite Construction, Stimulus Package, Jacobs Engineering Group at Wikinvest

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