Wednesday, February 28, 2007

How I will play this market and Trades

Here are the notes I wrote to myself last night:

Control your emotions. Do not feel the need to make any big bets or predictions. Do not feel the need to make money out of this fall. It's okay to make some bets, but make sure to use a small position size or control risk.

Expect a dead cat bounce in the next few days. The key will be what happens after the bounce.

Do not watch CNBC. I'm cool with reading from sites and blogs of people I respect, but no TV.

Adhere strictly to stops.

Keep it simple stupid. Watch major support and resistance lines. Don't make plays that are in no man's land.

Keep it simple stupid. Narrow the stocks you follow. At this point, only play major momentum stocks and market leaders, index ETFs (leveraged), sector ETFs and one or two stocks from sectors of interest. That's it. At least for the time being.

Trades:
I already mentioned the QID trade. I bought 1000 shares at $53.82.

I sold 500 shares of CENX at $45.80 for a $920 loss (3.8%).

I sold 100 shares of GS at $207.05 for a $695 loss (3.4%)

I sold 50 shares of GS at $205.24 for a $146 loss (1.4%)

I sold 500 STLD at $37.45 for a $1285 loss (6.9%)

I made two day trades yesterday, along with a short that I covered today.

I bought 1000 QID as it broke past $53 ($53.11) and sold at $54.43 for a $1320 gain (+2.6%).

I bought 400 DXD (double short Dow 30) at $58 and sold at $59.26 for a $504 gain (+2.1%).

I went short 500 shares LEH at $74.93 and covered at $73.60 for a $665 gain (+1.8%).

I am still holding on to RL. I am watching QID, DXD, DDM and QLD (all leveraged index ETFs) closely. Sectors of interest include energy, retail, brokers, metals and other commodities. I am also keeping a close eye on Latin America and Asian ETFs.

If you were linked here, please view the rest of my site

4 comments:

traderray said...

Hey, I thought you'd find this of interest.

http://traderfeed.blogspot.com/2007/02/how-did-money-flow-during-market.html

IMO, if you're going to trade a "dead cat bounce" stick to the Dow 30. I'm not sure if momentum stocks are the best place to be. What do you think?

I just started my trading journal recently. I've been reading your posts for a week or two, and I like your process of chronicling trades.

The Market Speculator said...

You may be correct, traderray. The reason I am watching momentum stocks is to gauge the market. I probably would not trade any unless they break support or resistance levels. If a stocks like AKAM roar back and break resistance, that would be a good sign for the market.

Dr. Brett is da man!

Inspirational quotes said...

site about quotes about love,quotes about life,motivational quotes and its saying about life quotes and also inspirational life quotes
http://www.life-quotes.co

site about whatsapp status , sad whatsapp status , love whatsapp status, romantic whatsapp status , funny whatsapp status
http://www.whatsapstatus.com

site about romantic status in hindi,romantic status,romantic poetry,romantic period, romantic music,romantic quotes,
romantic love quotes http://www.whatsapstatus.com

Inspirational quotes said...

A.V.Fistula Needle
av fistula

whatsapp status/best whatsapp status/love status for whatsapp

son quotes/mother and son quotes/father and son quotes

life quotes

motivational quotes
saying about life quotes
inspirational life quotes
Positive Quotes
Son Quotes and Sayings
friendship quotes

Happy Birthday Quotes/ Happy Birthday Wishes/
Happy Birthday Images/Best Birthday SMS Messages/