What we have witnessed this week can be frustrating. With the broad market behaving so erratically and without conviction, it has been a grind of tight risk management. This tape and how you manage it speaks volumes to your progress as a trader. Find your spots and get involved with names you see value in. Building a good month in these conditions means scaling off longs into rips in my opinion. I don’t short individual issues and am yet to have conviction behind an index/sector short. However, Mr. Cain Thaler is your go to source on the energy complex, and he’s been making one hell of a comeback as of late.
I came into today not expecting to take much action. Last night I highlighted my risk management and most of it focuses on the closing action. The close has been consistently week and I want to see a shift in this tendency before putting on more aggressive snap-back longs. All I’ve done today is scale off 1/3 of TRIP, which was my largest position going into the session.
It’s been impressive to see P make progress to the upside. As of this writing the stock is still hanging tough. I want more P, but I’m reluctant to average up until we see a pullback and its treatment. Depending on how you entered into the basing pattern, long speculators on the base are up ~30% which is comforting, dare I say at risk for complacency? Don’t be surprised if we see profit taking later on today/this week.
The individual socials as a group continue to eek out upside. The derivative names (SVVC and GSVC) are weak today but not yet threatening to the bull case.
It’s how they close that I’m focused on.
good post. I continue to enjoy reading your stuff.
Cheers RC!
nice post !