Most stocks move with the broader market, because the index are made up of them. If one get the index right....aka the posture right, it is very easy to trade.
30 minutes before close Friday, I close all of my Bullish longs: RIO, PBR, PCR, CLF, FCX, ABX, APPL and XCO. pretty nice profit on this round.
As I see SPY hitting the 50 MA and also in the area of last high at 86/87'ish, voices told me that the market may need a break.
So I got long on SDS with half of the position size, stop at $71.89, I think at least 33% of this week's move is to be retraced. I am watching SPY at $85, it will translate to $77 at SDS, that will be my first target.
On the other hand if the market keeps moving up, I will get stopped out at 1/2 of the position size, no harm done. Because market shifted focus to fertilizers and rail, so as I exited my energy stocks, I also watched for the entries on those sectors.
As a result I added POT, MON, MOS and the rails: UNP, BNI and CSX to my watchlist. Last round was Energy and Basic Materials (gold).
One interesting note: APPL, hitting $100 and backed down, this is a legit W-1 move so far, we will see. of course RIMM, keep watching, it is climbing up the ladder.
Trade Safe
shorts: SPY
longs: SDS (same as short SPY)
If you find this blog beneficial to you, please donate to your favorite charity.
Link back to the Blog
No comments:
Post a Comment