Stocks Hit Hard...Once Again...
It seems like nothing is able to withstand today's market carnage. Most of my positions are down across the board. Big surprise, right? Despite this, there are a few stocks in the 'folio that are holding their own and going against the tide. DGSE, MAIL, KTEC, PATK, LGTY, SNR and STS are doing ok. I initiated a short position in AAPL this morning around 140. I expect AAPL to drift down to at least 130. We'll see if it shows more weakness at that level. If it doesn't, time to cover.
posted by Nick M. @ 3:40 PM
8 Comments:
I was floored to see SYNO down 3% after the excellent friday, pretty much lost everything I had gained on it. Then I was slightly relieved to see the market was down significantly as well. Good time to buy more SYNO?
Don't count SYNO out just yet. I still believe it will head higher. But..before you buy, let it come down a bit more. I'm not 100% on this but I expect SYNO to possibly pull back to the 10 day MA which is low to mid 15 range. Again, I am not certain on this but you may just want to wait to see if you can get in cheaper. Also, keep an eye on todays winners. RRST did very well today and today was a good time to add to it. I didn't get a chance to, so I will do so tomorow. Also, JDAS, a stock that I put in this weeks earnings watch did very well today. It should make a good long for tomm.
shorting AAPL is a very, very risky move. May pay off for you, but having read your trading strategy or some time, it seems to deviate...
Yes, it does deviate a bit from my overall strategy. At the moment, I am still trying to form my shorting strategies. Although I stress that one should short only if the stock fails to hold above its major moving averages on heavy volume, I feel that AAPL can come down a bit and at least hit the 10 or 20 day MA. I wouldn't add to my short unless it shows more weakness by heading below those points. I try to stay open to new ideas and strategies. Some will work, others will undoubtedly fail. Still, I believe that for now (the immediate future), AAPL's iPhone results fell below expectations and that the stock makes a good short term short. I may be right.
or wrong for that matter. It is still too early to tell. Overall, I am over 90% long the market.
No doubt you're a great trader (90% or not)
As I pointed out, shorting a stock as volatile as AAPL in which much of the stock's price movement is driven by speculation is a very, very risky play. AT&T's numbers were based purely on activations over a 36 hour period. AAPL's numbers are based on sales... with such a short time period, coupled with the activation problems experienced with AT&T, those numbers were definitely a lower bound.
A,
With all due respect, I am not a great trader. I'm still at the learning phase as I have been doing this for almost 3 years. Maybe five years from now I can become a great trader if I refine my strategies. Anyone can really do this if they are passionate about it and dedicate themselves to the task. Anyways, I will keep an close eye on AAPL. Any signs of strength and I'm covering. This market may trade sideways and laterally for weeks or months before it finally tops. Only then it will be a good idea to switch to shorting. For now, its mostly all about being long.
Looks like I might have to cover my short tomorrow....so yes it was a mistake to short so soon. I failed to take my own advice...
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