Tuesday, December 18, 2007

Quick Trade Update

I took small long positions in CF (92.05), AAPL (179.80), FSLR ($235.25) and RIG (132). The first three were so oversold that I decided to buy after they started to bounce off their lows. If we get the holiday bounce everybody is waiting for, these stocks should do quite well.

I used strength to short dryshippers DRYS ($77.13) and EXM (33.75). Both still could move a little higher (in fact, both closed above my short entry), however, the bounce was too good to pass up. They have very "toppy" looking formations.

I can see DRYS testing the 200 day moving average at 60. I am using a loose stop (83). If it breaks above 83, we may see a run to the 50 day moving average at $100 before resuming the downtrend. I don't mind taking the risk of loss considering the possible gain. If I get stopped out at $83, you can bet I'll try again at $100.

I took profits in shorts QID and AKAM.


Anonymous said...

good that you went long aapl bad idea that you went short drys.

drnova2000 said...

Market Speculator

Do you think the we formed a bottom today 12/19/07? Can I go aggressively long? Or you think it will be sell on strength?

What price did you short DRYS? When will you cover?

Has AAPL and BIDU put in a bottom? Where would you buy them? Any opinions on AGU or FWLT?

Anonymous said...

DRYS just got a big vote of confidence from Jefferies saying the shares are "extremely oversold" and slapped a $160 target on it. With short covering action this might rocket.

The Market Speculator said...

Dr. Nova,
I am not going to predict a bottom. If there was a big edge in picking a bottom right now, I wouldn't have any shorts. I'm leaning 60/40 that we see more downside in the coming months.

However, I do think we could see a short term bounce, which is why I went long AAPL, RIG and CF yesterday.

The Market Speculator said...

So far DRYS is staying the course. Thanks for the update, alhtough I missed the news you are talking about.