[Day] Closing Notes

Well, I didn’t make any full day trades today. There wasn’t enough volatility in the market. The best trade was to short the retails when the Dow took a turn about 1pm. Definitely a good day for the longs. The profit taking at the end of the day was healthy, and slightly weaker than I anticipated. The bulls were spoiled to close in the green. Remember, tomorrow is options expiration day.

• NVEC– was my best call. I spotted the rock hard resistance at $25, noting that it failed to break it 4x (actually it attempted a fifth time then it fell). Unfortunately for me, I never played it.
• SHLD– showed weakness throughout the day. Again, I never played it. Actually would have been a good day trade too. Short this until the end of the year.
• MLS– showing signs that a bottom has formed at $13. Time to swing this long for a short term bounce.
• RIMM is beating PALM up pretty good.
• TIE has too much negative momentum. Had to exit when it refused to go green while the Dow was rallying today.
• GME performed a rare fill-the-gap after dropping hard on the day of earnings.
• CHINA is now on the short sell radar
• BDCO is back on the short sell radar
  

interesting stuff w/ the retails…

• ANF & AEOS reported already and have trended up since. Second half of the day they were victim of profit taking/sell off (mirrors the Dow
• CHS– profit taking second half of day
• CTRN– wild ride. Spiked up yesterday on upgrade, tanked today on profit warning, but still managed to climb up $4.

Off to the beach!!!

Market is giving up gains fast… profit taking.

Meanwhile, NVEC has collapsed below my support at $24.50…. profit taking (these don’t last long). Anyway, the trend is now down on the hourly charts, but don’t expect it to go much further within two hours.

NVEC failed to break $25 four times w/n the past hour. Still, the stock does have an uptrend. You can take a chance and short now with a stop slightly above $25, or you can wait for support at $24.50 to be broken. If you short this, however, don’t expect big gains. I’m just looking for 1%-1.5%.

With an hour left, I really don’t see any good trades out there. The market is too thin, and the bulls are not taking profits.

The day trades on my radar are only good for about 1% gains… that’s pretty useless especially if my stop loss is 1%.

Easiest trade I can see:

Short: NVEC 24.90
Cover: 24.60
Gain: 1.2%
Stop: 25.15
Loss: 1%

… problem is, the bids and asks are extra far apart. And I’m not sure I want to battle the longs anywhere.

This stock (GME) is filling the gap effortlessly. Now that I’ve read the outline of their earnings, the stock shouldn’t have sold off that far anyway.

Another stock bouncing back up is Cititrends (CTRN)… one of the rare retail companies that fell hard after earnings.

This big gap up stock is just about to test the day’s low ($5.05) . As I write this it has fallen from 5.15 to 5.07 w/n past hour. Those who profited overnight are getting nervous here.