Monday, April 13, 2009

04/13/09 Market Recap

Today was pretty much a nothing day, my account was up a whopping .2%, I also got out of my AAPL short in the morning for a small loss of .5%. I just didn't have a good feeling about apple, this market has been up a lot and it seems relentless, and as long as it is showing strength there is no reason to go against it. I keep trying to pin point moves in the market with some of these short positions that I keep entering, but there is no point in trying to pick the ultimate top because that is next to impossible to do. I want to focus more on capturing the middle 80% of a move, wait for a stock to confirm the position which you want to take. If a stock you want to short keeps going up day after day wait for it to lose some momentum and once it starts making lower lows and lower highs that's when you can get in on your short position. The risk to reward ratio is much more to your advatage this way rather than trying to pick the ultimate top of the trend.

Today I trimmed my position in ORH in half and added a new short position in GENZ which looks like it is on the verge of breaking down, i'm looking for a break of 55. I am aslo thinking about entering a short position in BAC in the morning, I think if this market makes any sort of down move BAC will get hit hard. My stance on the market still hasn't changed I still think we will go up to that 870-880 area before making any sort of meaningful retracement. This market has been overbought now for weeks, and even though we have had this major run up we still have a declining 200 moving average which still means this is a a bear market rally, money is still net liquidating which is something a lot of people pay attention to.

Here is a potential "lottery" longs which I am looking at:

IO

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