I took Fly’s advice and closed out a few positions to free up cash. I don’t plan on trading much today as I will wait to see how things set up. If I was to guess, I would say that we still have more downside in the near future, maybe to S&P 950 or so.
Once we get near that level, I will start to deploy some of my cash to a few of the 4g plays, as well as a few commodity plays. For now, I will continue to look for breakdowns/breakouts for quick trades.
As of this morning, I took home Reliance Steel & Aluminum [[RS]] short and plan to hold for a swing. I’m also looking to buy a few puts on AutoZone, Inc. [[AZO]], I love the retrace right back to the 200 day moving average, setting up a low risk/reward play:
Not much else to say other than be careful on the long side, I think it’s very possible we pullback all week– I mean it is option expiration week.
If you enjoy the content at iBankCoin, please follow us on Twitter
Saw you short AZO, whats a likely target?
no target in mind. I will exit if price trades above 145.50
Quite a slow mover heh.. thx for the advice cajun, been following you.
n/p
stay tuned, i plan to have list a bunch of great setups in tonight’s post.
looking forward to seeing some short setups. I watched LOW today, also like AM for a short here, I was very close to shorting that. I did short some ARM – that is a much riskier setup shorting at the high but I think if the market really rolls over here then ones like ARM that are trying with fading volume to break to newer highs will be good shorts.
Hey RC,
Do you wait for a CLOSE above/below your stop before getting out or once it crosses?
Thanks!
S&P @ 900 here we come!
DTG looking ripe to continue its decline