Thursday, September 21, 2006

Today's Trades: CAL, HAL, HP, BOOM, BBBY and UARM

I covered 250 shares of HP at $23.30 for a $270 gain (4.6%). When the stock had broken down to $23.15, I moved my stop up to lock in a 1 point gain. I'm glad I did.

I covered 300 shares of BOOM at $34.45 for a $369 gain (3.7%). I am still short 200 shares.

I went short 600 shares CAL at $30.16. I was turned onto this stock after seeing this chart over at Tim Knight's site. I covered 300 shares at $29.16 for a $300 gain (6.3%), and am riding the remaing 300 shares.

I was tempted to make a big short play on HAL towards the end of the day. The fact that the stock (and much of energy) could not hold onto the intraday gains is a bearish sign for a bearish sector. However, the parabolic drop sans any decent sized pullbacks, along with the extreme oversold levels, scared me away from making a big bearish bet, so I cut my normal position size (400-600 shares) and went short 200 shares at $28.52.

For future reference, I usually cut the position size on plays that I feel are more risky than usual.

I am still holding my full short positions in BBBY and UARM, along with the remaining 200 shares of BOOM, 300 shares CAL, and 200 shares HAL.

Today was a pretty good day, as my inclination to short has been paying off. However, UARM and BBBY are both slightly above my entry points. Although I have a feeling I will get stopped out (these stocks were just too strong on a bad day), I plan to hold them unless they reach their respective stop levels. I don't want to end up micromanaging these trades.

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