Tuesday, November 18, 2008
When It's Up....
Sell it. And when it's down, buy it.
That seems to be the formula for trading success these days.
I did no *trading post* yesterday because, well, I made no trades.
Today, I doubled up my NASDAQ-100 long when the market sold off. I bought the QQQQ at 27.73 and I dumped it after the close at 28.87.
Remember I still have my 28.54 stock that I bought after the close on Friday. For a minute this afternoon, after the market had reversed hard off its low, I thought about staying *really* long for tomorrow. [The Dow rallied 319 points in the final hour of trading.]
Then I wussed out and dumped today's additional stock.
Coming in real long hasn't been a winning formula for a while now.
Though I am seeing palpable signs of exhaustion - in oil service stocks and also in Home Depot and Lowes. By exhaustion I mean they've been holding up in the face of continued crude weakness, and, in the case of the home improvement duo, both HD and LOW rose on horrible earnings reports.
On the other hand, the financials are still a problem for the overall market. The UltraShort Financials ETF - SKF traded up to 200.96 this afternoon!
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And WFC traded nicely below the prints intraday. Finally.
Actually, that was the third time it traded below $27 intraday. Still hasn't closed below it.
Yes I did notice that prior to yesterday but they seemed VERY short in duration (?) as opposed to the price sitting below 27 yesterday for more than an hour.
It finally looks like 27 has gone from support to resistance. I am thinking (guessing) that $20 is a long entry point.
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