Babu, ENER went down to shakeout the weak longs. It will come back up to that price and even higher. Remember ENER did the same thing on Monday morning. I bought ENER that time because I knew it was a shakeout. Yesterday, same thing happened to NOC. It went down even below what I bought. Guess what now. NOC is even higher today. You have to understand the specialists trying to do. I will let you know when to get out if conditions don't favor us anymore.
1. Buy on a dip, especially the shakeout, in the uptrend. 2. Never chase the stocks going up to buy.
The rules are opposite apply to sell or short.
TSL went up too far to fast in two days from low 30s to 36. Today is the profit taking. It doesn't mean TSL is going down. TSL needs to consolidate between 32 to 36.
NOC broke out already at 50. Like I said before NOC will trade in a range between 50 to 52 for couple days. Then it will resume upward.
Babu, you probably ask why I don't mention stop loss limit for my picks.
If I have exit strategy, I want to keep it for myself. I don't want to reveal my plan to my brokerage. If my brokerage knows my exit strategy, they will try some ways to execute it. Like today example, other investors that set stop loss limit, the brokerage or specialists saw the stop loss limits and shakeout the weak longs this morning.
In reality if you are the football coach, will you reveal your next play to your opponent?
The Fed will speak soon in less than 1 hour. I don't know if the market will make big swing or not. If SPY quickly fall below 106.50 area, get out during the speech. Otherwise, stay long.
Need to see 10000 on all major newspaper and magazine covers before going short. Let everyone feel good in the weekend. I would say wait for NASDAQ 2215 and DJI 10200 before going short.
Sure Mantra, You are probably correct. AAPL to 200 as well. They've gotta suck everyone in before a real pullback/selloff. I just dumped 2/3rds of my short for small profit.
Couple days ago, I mentioned SPY will hit 107.50 again and it did. Also around 1:30 PM I warned that SPY could possibly close below 106.50. Today I called it "Double Attack" action. QQQQ was setup to break 42.83 and it went higher to break 52 week high and then it collapsed from there. It also closed below previous day low. SPY did the same thing. You might see today action could be the "top". It had the making of strong reversal sign.
I will be start looking for short opportunities tomorrow. All my picks were in the profit. Not much for ENER, little on NOC, a lots on TSL.
The volume had picked up today. SPY made double top. VIX and the Dollars bounced back up and closed positive. I will be looking for short opportunities tomorrow on a pop. Tonight I will do more analysis on it. I will let you know which stock I will be watching on my first post tomorrow morning.
It seems market saw too many waiting to short at the targets mentioned in previous post and probably saw no more money coming in for little upside target. Have to go with the market. Let's see what tomorrow brings.
Gcl, can you suggest a stop loss for ENER? I purchased it at 13.45.
ReplyDeleteSPY is still stuck in a range between 107 to 107.25 area.
ReplyDeleteBabu, ENER went down to shakeout the weak longs. It will come back up to that price and even higher. Remember ENER did the same thing on Monday morning. I bought ENER that time because I knew it was a shakeout. Yesterday, same thing happened to NOC. It went down even below what I bought. Guess what now. NOC is even higher today.
ReplyDeleteYou have to understand the specialists trying to do. I will let you know when to get out if conditions don't favor us anymore.
Picked up some ENER at these levels. Not sure market will hold today, we shall see.
ReplyDeletehi gcl
ReplyDeletecan u tell us where and how to look for hot sectors and specific files at this sector
I have rules to follow when I consider to buy.
ReplyDelete1. Buy on a dip, especially the shakeout, in the uptrend.
2. Never chase the stocks going up to buy.
The rules are opposite apply to sell or short.
TSL went up too far to fast in two days from low 30s to 36. Today is the profit taking. It doesn't mean TSL is going down. TSL needs to consolidate between 32 to 36.
NOC broke out already at 50. Like I said before NOC will trade in a range between 50 to 52 for couple days. Then it will resume upward.
ENER is sitting at the 13 day moving average.
http://moneycentral.msn.com/investor/market/top10industries.asp
ReplyDeleteShulin,
ReplyDeletecheck the above link for top 10 industries and click on each of those industries to see the best and worst stocks with in that group.
Babu, you probably ask why I don't mention stop loss limit for my picks.
ReplyDeleteIf I have exit strategy, I want to keep it for myself. I don't want to reveal my plan to my brokerage. If my brokerage knows my exit strategy, they will try some ways to execute it.
Like today example, other investors that set stop loss limit, the brokerage or specialists saw the stop loss limits and shakeout the weak longs this morning.
In reality if you are the football coach, will you reveal your next play to your opponent?
The Fed will speak soon in less than 1 hour. I don't know if the market will make big swing or not. If SPY quickly fall below 106.50 area, get out during the speech. Otherwise, stay long.
ReplyDeleteI just shorted this rally.
ReplyDeleteNeed to see 10000 on all major newspaper and magazine covers before going short. Let everyone feel good in the weekend. I would say wait for NASDAQ 2215 and DJI 10200 before going short.
ReplyDeleteSure Mantra, You are probably correct. AAPL to 200 as well. They've gotta suck everyone in before a real pullback/selloff. I just dumped 2/3rds of my short for small profit.
ReplyDeleteOne hour had passed since Fed spoke. Where are we in the market at this point? The market is right back where we were at 2:15 PM.
ReplyDeletegood call jdt
ReplyDelete107.07 going to hold? 2x bounce off her
ReplyDeleteoops..guess not!
ReplyDeleteIf SPY closes below 106.65, time for abandon ship.
ReplyDeleteI got out of TSL at 34.30, ENER at 12.92, NOC at 51.80.
ReplyDeletewould you be adding any shorts/put if we close below 106.65 on spy?
ReplyDeleteCouple days ago, I mentioned SPY will hit 107.50 again and it did. Also around 1:30 PM I warned that SPY could possibly close below 106.50. Today I called it "Double Attack" action. QQQQ was setup to break 42.83 and it went higher to break 52 week high and then it collapsed from there. It also closed below previous day low. SPY did the same thing. You might see today action could be the "top". It had the making of strong reversal sign.
ReplyDeleteI will be start looking for short opportunities tomorrow. All my picks were in the profit. Not much for ENER, little on NOC, a lots on TSL.
The volume had picked up today. SPY made double top. VIX and the Dollars bounced back up and closed positive. I will be looking for short opportunities tomorrow on a pop. Tonight I will do more analysis on it. I will let you know which stock I will be watching on my first post tomorrow morning.
ReplyDeletesounds like a plan, see you tomorrow
ReplyDeleteIt seems market saw too many waiting to short at the targets mentioned in previous post and probably saw no more money coming in for little upside target. Have to go with the market. Let's see what tomorrow brings.
ReplyDelete