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Tag Archives: $RH

Bulls Get Shanked into the Bell

If you wanted month end fireworks you had plenty to be excited about today.  The market was full of action everywhere.  These wide range days are a momentum traders dream because they give positions room to work.  The sell off into the bell took the cascading algorithm shape, where orders get jammed into the exchange severs at warp speed. 

Today was feeling like a tight, boring day in the futures, where the range was compressed down to ONLY ten handles.  Then there was a curious afternoon pop which stalled out no sooner than RaginCajun strapped on a festive TVIX bowtie.  

Underneath the surface there were big moves.  Solar stocks got dismantled following a weak day yesterday.  A few names survived the carnage, but overall a drubbing was had.  Here’s the data, courtesy of The PPT:

solars

Zillow ripped while the rest of the mobile social space consolidated yesterday’s gains in a rather mild manner.

I missed reentry into $RH today.  The stock closed strong, and the name should be on your radar going into the weekend.  I’ll be looking to raise cash levels tomorrow, and I’m hoping I’m greeted by market conditions that allow such transactions.  Into this first week of March, I want high cash levels so I can stay objective and hone in on the bigger rotations taking place as investors position into the close of Q1.

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Proceed With Pomp and Vigor

It was a pretty interesting day to be a trader.  The sellers made themselves known early by pressing their bets as my plan leaned toward.  I can’t see the market as clearly at 4:15pm as I can at 4:15am.  I don’t know, perhaps the fatigue of juggling corporate job, playing hand grenade hot potato with stocks, keeping tabs on my enterprise, and staring out the window at the salty landscape below fade my edge by afternoon.  But when I wake up and turn on the markets, they’re so clear, OLED HD clear.  You should read those AM posts, they even surprise me.

I was an early seller, cutting more losers out of my book.  I cut Citi, Facebook, and Cree.  Cree was a ten bagger.  It was a fourteen bagger last week, doesn’t matter.  Then I sashayed into SRS (ultra-short real estate ETF) on the first dip of the day and swung it trough-to-peak and sold like a boss.  It felt nice.  It felt nice booking two winners today.  You know what else felt nice?  Seeing Restoration Hardware continue to get the homo hammer to the head.  Winning while losing.  Facebook turned into tank book after I sold it too.  Hell, I’ll take it.

After all the above was said and done, I was around 60% cash.  It felt too heavy, having that much cash, so I went hunting.  One of the advantages I have being an independent trader is position sizing.  I can get in and out no problem.  One of the disadvantages, in my opinion, is I can end up having too many names in my book.  Too much to keep track of.  I was cognizant of this early this year.  My goal then was to gamble a bit, but eventually build into 5-9 core holdings.  Before yesterday I had fifteen.  So when hunting, I looked first at my existing positions, where they have gone since origination, and whether I could add.  I’ve booked two solid gains in Zynga and was sitting on a legacy position up over 30%.  Sure it could go back to its horrible 10% slasher-horror antics, but it shrugged these last two days off.  Thus I bought more.  This is however, slightly uncharacteristic of my style.  I usually wait for buyers to step in and confirm support.  That’s something I now have left unknown.  Thus the position is not full sized, but instead ¾.

Then I bought TSLA because the earnings reaction felt overdone, it’s near a risk I’m willing to wager, and there was heavy volume lifting the offer into the closing bell.

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