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Dennis Dick & Joel Elconin

Joel’s introduction to trading was in the Standard and Poor’s 500 Index futures pit at the Chicago Mercantile Exchange. Also, during his time at the CME, he was involved in Index Arbitrage as well...

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The Herd Continues to Flock Out of Icahn Enterprises

By: Joel Elconin

As mentioned on Friday, investors that were caught long during the parabolic move in Icahn Enterprises (NASDAQ: IEP) from 100-150 (in only 29 trading sessions) are heading for the exits.

In Monday’s trading, the issue has shed another six and half points from Friday’s close (112.57) at its low (106), and is now attempting to retake the 107 level.

Interestingly, the current low coincides with the November 7 low (106.17). If the decline continues, there may be support at the psychological support level of 100, which is reinforced by the October 29 low (99.14).

However, even at 100, IEP is trading at 25% premium to Net Asset Value (NAV) from the end of November (75). With appreciation in some of the funds top holding over the past month (NFLX, HLF and AAPL) investors should pay close attention to the new premium and NAV when evaluating the issue.

Perhaps the Street is taking its cue, from some of the other high fliers of 2013 (Twitter and Facebook) that are retreating from inflated price levels as well. Along these lines, the S&P 500 futures are pulling back from its all time high established on Friday (1840) and all time high close (1836.50-both Thursday’s and Friday’s close).

Posted in: Movers & Shakers Technicals Intraday Update Trading Ideas General