Sunday, April 10, 2011

Watchlist for the week of April 11th

This is going to be a short post, but I'm watching these stocks this week:

I'm expecting a small pullback in the market this week, maybe for a couple of days, as highlighted in my previous post, but I won't be trading aggressively to the short side. If I short anything, it will be for 1-2 days max... I will also be paying attention to earnings plays in the coming weeks and months, while companies report Q1 earnings and there will be lots of opportunities. Good luck this week!

Friday, April 8, 2011

Market read for the week of April 11th

I was hoping for a little correction, and if you read my last post, you know that I've been cautious and was not initiating any swing positions. The market didn't really sell off all that much today (Friday April 8th), but enough to test the 10day MA, which is good. I would love another selloff to test the 132 level and would be buying with both hands if we get to the 50d MA again at ~131.  In fact, a little cup and handle formation on the SPY here, before a move higher would be perfect in my opinion!

(NB: the MAs on this chart are not exactly right, so please disregard... I can't figure out how to put a daily 10d MA on the 30 min chart without having discrepancies vs the daily chart. If anyone knows, please let drop me a comment!)

Here's a daily chart that shows the possible cup and handle forming. As I said above, I'd be a buyer in the 131 area, but for now, I will just focus on trading less. It is also possible that today WAS the pullback, and if that's the case, then I will be buying on a breakout above this resistance level.

Even though I said I wouldn't trade much this week, I still did. This was a bad idea, and I knew it from the start. I should have just sat on my hands, but instead I got chopped up in the market. Made a few bucks here, lost a few bucks here, and overall I lost a couple hundred bucks, mostly commissions, and instead I should have been sleeping in! The good thing is that I did only half my usual number of trades, so I'm starting to get better at identifying periods where I need to be trading less.

I'll try to post a watchlist on sunday for next week! Have a good week-end!

Monday, April 4, 2011

Markets and watchlist for the week of April 4th

I woke up late this morning, so I didn't really trade much. I did only 3 trades, with 1/2 size only, which is probably a good thing... I don't like being unprepared for the morning, and so for me, it's best to just sit and watch when that happens! Here's one trade I took today, which worked out ok:

I had been day-trading VHC last week as well, because I had a feeling there would be a lot of short sellers trapped in this name, and any break of a hod would cause some to cover. A similar story is happening in  TZOO, where a lot of shorts are being caught and the stock is rising on short squeezes. It's always a good idea to keep some of these names on your list, to play both on the long and short side! I think VHC and TZOO will eventually make good short candidates, but not just yet!

In other news, the markets have been consolidating lately, which is healthy after the big run up we've had in the last 2 weeks. I'm being fairly cautious here (not initiating any swings long or short) because of this wedge formation. Keep an eye on this to see which way we break... Or we may just move sideways for a while... But I wouldn't be surprised to see a small correction here. In any case, I'm being patient.

In terms of watchlist, I'm looking a only a few things right now: mostly in the oil and gas names! LNG, XTEX, AHD, HNR, CPE, CXO. I'll also be watching LULU on a break of 91.

Good luck this week!