The market is digesting the gains bulls achieved earlier in the week with a consolidation today. There isn’t a doubt in my mind that we’re overbought here. But we simply haven’t seen any high volume distribution. It’s just one rotation after another from extended stocks to the ones setup below.
I’m putting money in several names, looking to catch the next rotation. I’ll be honest. I don’t know where it will be. My two primary rotational plays are LOCK and JRCC. Lock is up over 10 percent this month but hasn’t pumped alongside the overall market this week. JRCC is coal, so who the hell knows if it will catch a solid bid?
HAIN keeps marching ahead and I’m giving it space, but may take another scale soon. I can’t resist booking gains. The downside is I wind up with little fragments of runners in my books. Current runner fragments include FB ANGI GS and RGR. I’m considering adding to FB and RGR, but not ANGI up here.
My long term plays are AAPL AWK CREE and SAM.
My dog today is JOEZ jeans. It needs to shape up soon or I’m cutting.
Tue May 14, 2013 4:35pm ESTComments Off on The Trade Today Was To Buy the Open and Hold Onto Your Pants
Today was really interesting as a student of the markets. Believe me when I tell you, there’s gold in trading the S&P futures at the open. I just can’t seem to harness it yet. I have streams of data over all types of markets supporting such a thesis.
I grabbed onto the $ES_F not long after the open. I got an ace entry just above 1630. As is par the course, I got my first scale at 1.25 points profit. I scale at 1.25 because my setup achieves this goal with a 70 percent win rate. Then I let the other units run. In theory. Currently I’m trading a two lot. I’ll keep trading this tiny position until I get the type of profitability my statistics suggest, and then my goal is to work up to trading 50 lots like the best.
Anyhow, I get the 1.25 and there’s no sign of sellers. But these positions require my full attention. More attention than I can give when I get the phone call for an impromptu morning meeting. WTF? I booked the other piece a 1.75 points profit and scuttled to a meeting. Returning to my abode, I watched patiently as the move progressed, and when I got a short entry I took it—then got steamrolled. That’ll teach me to fade all-time highs. Had I kept my runner, it would have earned 10 handles without even looking back. I know—I’m really good at hindsight trading.
While my future’s game is of the little league variety, my stock swinging game is clipping away with major league win rates and profitability BUILT IN. Mostly everything won today, but ANGI and GS were both solid con #timestamp for the good people of iBC.
I did quite a bit of transacting today, let’s run through it quickly yes?
I added to my GS long early on, and then later sold it when we neared the 155 target my plan called for.
The remaining long in BBRY was closed at break even, after squeezing some profits out of this turnip yesterday. Blackberry is a big, stupid, Canadian turnip.
I grabbed OptionAddict’s coattails via JOEZ. It’s not nearly as homo as putting ones hand in another man’s jean pocket.
I scaled a little bit of ANGI off. Why not take 5 percent before your catalyst? I still like it into tomorrow’s housing stats.
HAIN was bought into the bell, as it flagged along into the final hour of trade. My order was followed by a little squeeze which gave the daily chart a lovely look.
All this shuffling took my cash down to 40 percent. I’m standing atop the mountain on a small piece of rock, being propelled higher by liquid hot magma. This mountain is in fact, a volcano.