I sold out of the rest of my $ARUN stake. It was a pretty big winner for me, in this type of market. I want to discuss why I am content selling here. Normally, if we were in an upward trending market, I may let this winner run. However, until proven otherwise, we are still in an oscillating market sideways, where buying the dips and selling the rips are rewarded.
As the updated chart of $ARUN illustrates below, despite the fact that the stock is green (slightly) for the sixth day in a row, the candles are starting to express indecision on the part of the bulls, in the form of dojis.
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There is always the possibility for overbought to become more overbought. However, I believe that the high percentage play is to take off the rest of my position here. Indecision at the top usually presages a move lower. With profits in the bag, why jeopardize them in the face of this change of events?
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TOTAL PORTFOLIO:
EQUITIES: 22%
- LONG: 22% ($BX $SAPE $POWR $JMBA)
CASH: 78%
Thanks for another great post ChessNWine – I took a lot of my winners off the table today while they were still in the green.
well played
Nice call on ARUN, very nice run. Doji at the top of a range after a run up has also been a great indicator on the $INDU since April. Looks like we are printing another one today.
Thanks, pharkle. Appreciate you reading.
Are you still looking at FCX as a “tell”?
Went down today on higher volume then yesterday,
but the overall chart does have a bullish look to it , no?
Nice move on ARUN
yup–writing about it on the market wrap up–thanks
Always enjoy your posts, Chess. I am currently net short, but will bail if necessary.
Awesome trading!