Market Outlook:
Well guys, the market is at a crossroads that could kill us if we are not careful. Is this market experiencing a necessary pullback that will look like a momentary hiccup a few months from now, or are we setting up for the nasty reversal that the perma-bears have been waiting for? My many years of experience as an all knowing trader have lead me to this answer: How the hell should I know?
I'm not a gambler, I'm a trader. Until the market tells me what to do, I'm not going to bet the farm in either direction. That said, even if the market does not reverse in a big way, I do think we get a pullback that is big enough to make some money on the short side. Therefore, my bias will be slightly short, emphasis on "slightly". Keep an eye on major support and resistance levels, along with the accompanying volume. Once you get the signal, then go "all in", while still using prudent position sizing and risk taking measures. Trader Mike provides charts of the three major indices with key support areas.
One last note on the markets. Notice that the bulls that have been preying on weakness were non-existant today? If this continues, we will be in for a fast and furious fall.
Today's Trades:
I went short 500 BOOM at $32.40. I got lucky on this one, as it traded down under $30 after hours. I am still short all 500 shares.
I went short 400 shares AKAM at $46.80. I might add to this position if the stock breaks below the 50 day MA, which is at $46.01.
I went long 250 shares AAPL at $79.30. I've been waiting for a pullback to the initial post earnings level, and finally got it. My stop will be just below $77.50.
Unfortunately I don't have time to post charts of these setups. I hope to go over these entries in the coming days.
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