Thursday, September 06, 2007

Today's Trades: RIMM and RS

I bought 500 shares of RIMM at $82.71. This is a short term trend-pullback play. My intitial target is the high at $85, with a stop at $81.

I covered the RS short, 500 shares at $54.05 (entry at $53.16) for a $445 loss (-1.6%).

I am still holding GMRC, SDS and LFC.


Anonymous said...

are you buying because it was lower on lower volume?

I also have a question regarding ASTI. looking at the chart

there seems to be support at the current level (true or false?).
does this make it a good time to enter?

under normal circumstances i would enter into it after it broke out past the past highs, but after following your site i have been entering into trades earlier.

any feedback appreciated.

Rey said...

Hi there,

Again I really enjoy your blog, however I have a question...

It looks like I don't see eye to eye with you sometimes regarding going long on stocks that are about to break out with divergance such as MACD, OBV or any others... all the books I have read teaches don't get in on break out if there is majar divergence...what am I missing here?

and also what is your favorit book(I was just layed off work so I got some more time to fill) and what softtware do you use to find and analyze stocks if I may ask...

thanks in advanced...

The Market Speculator said...

I don't see a good low risk entry for ASTI. I'd wait for a pullback to the 50 day on weak volume or a breakout to the new highs.

I know my entries are not always precise. However, they almost always carry a good reward to risk ratio, and I usually play it loose on the momentum stocks.

Until ASTI breaks out, it's not a momentum player. As for risk, I see $8 as a good place for the stop, with $10-10.50 as an intial target. That's a less than even reward to risk ratio.

Note that this commentary is according to *my* trading style. If you're using intra-day charts, you may see $9 as support, which would change the risk analysis.

Also note that I am making no prediction of where the stock will go. I'm merely analyzing the risk involved according to my trading style. Technically, the stock looks good and could very well head higher.