Energy Transfer Equity ($ETE stock) announced the resignation of its CFO today causing the stock and $WMB (Williams Company) to tank. Both were slaughtered to the extent of -40% as some rumors were circulating of accounting fraud for the reason why the CFO left.
We successfully bottom picked $ETE and $WMB today but are only showing our $ETE trades for this post. $ETE did cause some pain for us initially as it went down but we added into weakness with confidence and eventually sold out for a nice gain.
Net profit: $4,899