Punched in the Face

I love the timestamp on my “Busy Buying” post this morning.  It’s right when the sellers really started filing into the market.  I made two new buys today and one was for a short squeeze only.  Obviously, not many shorts were getting squeezed today, thus I closed my ACCO.  The play could still go higher.  However, my premarket work pointed me to a level where I wanted to see buyers.  When buyers went no call no show at 1515.75, I began reducing long exposure in a big way.

Into the close, I raised my cash levels up to 40% by selling ACCO, DNKN, and RH.

I was receiving scrotum punches as soon as the market opened in TPX.  It’s a no news, more sellers than buyers kind of day in TPX.  We haven’t seen that type of price behavior in the name in a long time.  Has something changed?  It certainly may have.  However, I’ve retained the position.  I know how much I’m willing to risk on this name. 

The punch to the face today was missing my scale point in CCJ.  Here I was, targeting my scale.  Price was compliant, but I was pulled into a meeting.  Then I tried to get cute and grab a peak to scale my piece.  Then I put my order book down and just watched it melt for the rest of the day.  Scaling works for me.  When I miss a scale, I’m not adhering to my plan.  Those are the mistakes I cannot be making.  Losing 2% today, that’s life.  Missing my scale, that’s a death sentence.  It’s as if my ceremonies last night fell on deaf ears.

I could have booked a few gains and reduced exposure further, but given the individual chart pictures, it seemed a bit over reactive.  Then again I thought selling MOS last week was over reactive.  You can’t always be right in this market.  I swear no allegiance to the names I hold, but if a stock like ANGI barely budges while burlap sacked men sell silver, wood, copper, cement, and oil at alarming rates, that is DEMAND.

 I know what must be done, rotisserie chicken from KRO and homework.  This is where it gets fun.  IN THE FACE!