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Let’s just be happy that Tim Tebow has found a new home with Brady and the Pats.
It looks like the bears want to take charge again, as they thwarted the bulls rally attempt off the lows today. The market opened down hard today, but then the bulls stepped and the market retraced the entire loss. The market then peaked at about 11:40 and started to rollover and closed near the lows of the day.
It is possible that the S&P may want to go down and retest that 50 day moving average again which is around 1610. It also could test 1598 which was the low last Thursday when it actually broke the 50 day on an intraday basis.
We’ll see if the bears have the firepower or the will to hit it again tomorrow. I still feel that any sell off will be bought with both hands, especially with the quarter’s end coming in two weeks. You would think that the quarterly performance chasers will come out of hiding.
Not exactly bullish action, but a good trading market if you are fast. Some of our stocks looked goo dearly but then also rolled over a bit. Breakouts like IMOS and GTXI looked very solid early on, but then succumbed to selling. Another example would be MNKD which tried to breakout through the round number of 8, but was pushed back. Many times breakouts don’t happen and stick on the first trip, so it will be interesting to see how they trade tomorrow.
I had a very tight stop on YY and it did get stopped. I still like the stock and probably should have been a bit wider on the stop. I wasn’t expecting a down day today, so I was tighter. It held its 10 day moving average and the daily still looks great. I think like other stocks, it just needs a better market. In any event I re-added YY today with a new stop, so check the P&L.
Regarding Stops
As you guys know I use stops as “levels” and they aren’t necessarily hard stops. You guys that know me for a while understand how I operate, but some newer traders and folks new to this blog have had some issues on stops. What I am going to do going forward ( in the spirit of simplicity), is to place good old fashioned HARD stops in the stocks going forward. The last thing I want to do is confuse anyone, and much can get lost in translation regarding this issue.
Its hard to telegraph how to finesse a stop because so many factors come into play. Things like a one off event in which case a stock can overshoot a stop and then rally hard. Sometimes the first hour will stop you out then rally hard in your face. There are many more examples. I don’t have the time to address every stock or stop individually, so this is probably the best way to go for now. Many of you guys do your own thing anyway, so this wont apply.
But to keep it simple I’ll go with the hard stop.
See you guys in the morning.