It’s been another action packed day, albeit in a more concentrated bit of stocks. I almost looked wrong in boasting about my sub $50 RGLD purchase when the morning dipped briefly below. It should be noted that this was again a buying opportunity. Although we’re not out of the woods yet on this long position, it has constructive written all over it.
YELP started flagging nicely just below $32 around lunchtime. I added to my long thinking, “this is a good looking flag.” When I took to twitter to blast out my actions to the world I saw no less than four traders talking about the exact same breakout. The move was faded.again. This trade could flush lower, just be aware of that. We are all seeing the same telegraphed pennant at 52 week highs. Build a solid risk profile.
I thought my reasoning behind staying long JRCC was interesting, but it received zero airtime. If you’re into market dynamics, check it out. I scaled a piece around the three handle and have a 1/3 runner left on the books.
I closed out CRZO because it printed an ugly daily candle. I’m looking for constant gratification up here in the froth. I’m not looking to wait out and peak-to-trough foolishness in names that I have zero conviction in beyond price.
Ironically enough and completely contrary to the prior paragraph, I held my SCTY runner and watched it melt like a cheap ice cream cone down 12 percent. The position is still 8 percent in the green due to a sweet entry and there are gains booked to back it up. I’m not going to let one down day scare me out of the cocaine party. It will take at least two.
Final thought: A cheap ice cream cone? Does an expensive ice cream cone exist?Comments »