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!

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