It pays to not try too hard on consolidation days like today. Many traders on the stream this morning called for a trend day lower. Instead of seeing further distribution since the morning gap lower the indices have been chopping around. My portfolio, titled “AppLand3000”, saw a mixed bag today with most stocks lower. Relative strength standouts were YELP and TRIP.
The TNA I added during the late Friday trade is causing some pain, but the underlying thesis stands. I will continue holding the position and will only consider stopping out if TNA closes down in the low $58’s aka back in the April range. The only other pruning today consisted of selling some PCLN and using said proceeds to add to YELP. I really want to see YELP regain the $23.50 level to consider the price action constructive.
P, ZNGA, UPS, & RAX aren’t cheap enough yet, but I want more.
Before tomorrow’s AMC earnings in TRIP I intend to lighten my position a bit. I will hopefully be doing the same with YELP and LNKD later this week. However, the names I’ve laid out during my past two posts will continue to demand my attention and speculative dollars.
In the meantime, DDMG is trading in its own world. Call it trader space camp.
If you enjoy the content at iBankCoin, please follow us on Twitter