I came into this most recent market thrust with a cash position hovering near 50%. During this entire year the lowest my cash position has ever dwindled was to 25%. That felt fully vested. I’ve lightened up as we’ve climbed the wall of worry. Today cash is at 90%.
I’ve swung some multi-month positions, a few winners, a few scratches, and a few losers. All documented within the sacred halls of iBC. You see, this is my 100th post! 101st actually. AND WITH IT COMES A GLEAM OF WISDOM:
DO NOT LISTEN TO ME, WHEN I TELL STORIES OF BUSINESS GRANDURE.
Let me explain. I trade two setups well. The more I trade them the more natural they feel. When I trade these two setups, I know my risk and define my targets. They’re very nice, very clean. They’ve been my biggest winners and smallest losers of the year.
When I tell a story, about management panache, product elegance, AND SUCH…it’s puff. There I said it. It’s all just me building subjective interpretations of a company and its operations to support my bias based off a chart setup. And it’s fun, so I will continue to do it. But don’t be surprised if I sell off stock in a company I think is great once price gets sloppy.
Like how I sold RGLD today. The setup broke down on Friday, but I suspected I would have a better price opportunity to close the trade today. I got my early morning pop, it had no follow through, so I scratched off the trade.
But know this and you will enjoy my pieces more. My trading centers on two setups:
Setup #1: Define if price is trending and trade the pullback and thrust in the direction of the trade.
Setup #2: A two scale purchase of a beaten down price, scaling off the original piece if price retraces.
Both setups rely on exponential moving averages. I’m a momentum and overreaction trader.
So I will likely delve into the aforementioned setups in greater detail in posts going forward. I’ll post the charts too, why not? I will not, however, delicately place perfectly cropped babes on my charts. I don’t have time for all that foolishness. However, thank you KCScott for lowering my blood pressure via babe shots.
Regarding the markets, we’ve made a thrust higher. And in my opinion the play now is to buy, but I need to find positions I can wrap a risk profile into.
I’m considering PCLN, should buyers step up. It will be a small position if it gets triggered. I like TOT on pullback too via this chessNwine piece.
I bought some STEM this morning for some riverboat action.
I need to get some of this cash out of my purse. I’m walking through the hood without a piece.
To 100 more posts I salute you!Comments »