Today I’m getting those butterflies in my stomach that ZenHunter spoke on over the weekend. They come from following your method and seeing it work. I keep a tight schedule now, nothing unbreakable, of course, but guidelines to keep me in the zone while there’s action.
Look at the financials. They’re not as overextended as the rest of the market. That’s why I’m back in Goldman. The inverse head and shoulders is a bonus and it allows us to build context into the play. It doesn’t matter if the market conforms to the chart setup. What matters is your ability to use this context to frame the position of other participants and how the live action is treating them.
Like when we say BBQ the shorts—it’s because you know they’re leaning on a major level, like GS $150.00. Today, they defended the level with decent tenacity. Their tenacity was overkill, if I may be so bold. Much like the last fight of an old tiger, they may realize their days are numbered.
These behemoth large cap stocks need a supportive overall market more than the crack rock that worked so well today, so be cognizant that playing GS means possibly having to ride that out. But once you’re prepared for that, you can play the inverse head and shoulder pattern accordingly.
I cut that HDGE position this morning. It felt good to dig that 12 percent losing thorn out of my side.
Other tickers of interest are current longs: ANGI, BBRY, FB, AAPL, RGR, and CREE
Other tickers of interest I’m stalking: INVN, ELNK, F, LYTS, and RH
I own SAM and AWK too, but they’re not of interest if you catch my drift.
Cash was a little above 50 percent into the bell. MORE I WANT MOAR.If you enjoy the content at iBankCoin, please follow us on Twitter