CHK $43.62

Note on Chesapeake Energy from 11/28/07:

"Chesapeake Energy might be the class of the three given the price action; recently set all time high of $41.19 and the CEO has been buying shares in mid-30s."

Oil is moving upwards on OPEC's moral suasion.

Current State of the Markets

Are we shaping up for a Trap or a bonafide rally?

• DOW 12524 up from 12069, 3.8%
• NAZ 2367 up from 2253, 5.1%
• S&P 1365 up from 1317, 3.6%

SIGM $44.01

Sigma Designs, adding spec stake (25% of full position). Buying the 200 dma. Contemplate adding again if it can blow through $47 on big volume.

3:05 Update:
SIGM at 40.80, one of the quickest -7% in recent memory. Precipitous drop from from $42 to $40 1/2 between 2:05 and 2:20 on big volume. Close to pulling out.

3:55 Update:
SIGM out. Absolutely ridiculous.

RAIL +6.70%

Freightcar America ($40.75) moving on good volume.
From Briefing.com:
Reports Q4 (Dec) earnings of $0.58 per share, excluding non-recurring items, in-line with the First Call consensus of $0.58; revenues fell 64.9% year/year to $137.1 mln vs the $147 mln consensus. Co says the North American railcar market has contracted, but long-term fundamentals remain strong.

Resistance Again

The Broad Markets have hit resistance again:

• DOW: 12,768
• NAZ: 2,419
• S&P: 1,396

It appears that these levels are somewhat validated. Does the recent rally from 1/22/08 constitute a Trap?

Greenbrier Companies $25.03

GBX up 20% today on Icahn's big stake. Does it have more room to run? $400 mm cap, 4 mm shares traded thus far today. Another rail company; been reading a lot about the rail industry. Hmmmm.

UST (56.93) +3.51%

Monster Volume. Breaking through 56.90 would be a big confidence builder. Advocating more considering what the broader market does. Currently a 25% (of Full) stake.