A bit of a Reversal...
Although we still closed mainly in the positive, all of the indices are bit off their morning highs. Profit taking and the absorption of the positive events may have been the biggest factor. The charts on the indices look indecisive. At this point we can either find support or resistance at this level. Whatever happens, make sure you are prepared and act accordingly.
One stock that sold today was my trade in EEE. I never had a chance to really mention this one, but I picked up a small position in it on 3/16 at around 1.05. I had been holding onto it patiently and decided to sell it today as the chart showed overbought conditions. I ended up selling it at 1.53 for a 45% gain. Not too shabby for a short term trade. If the stock continues building its base, I may jump in again for a longer term trade.
APAC also did rather well and I decided to sell this trade as well for a 64% return (in at 1.70, out at 2.80) I may rebuy APAC as well if it comes down a bit.
Other winners: Most of my mining/precious mineral related stocks are doing well.
AZK, IAG, NAK, RIC, UXG
posted by Nick M. @ 4:15 PM
5 Comments:
I should have held onto APAC for one more day!
DROOY is bleeding me dry. I was hoping this week's downturn would pick up precious metals again.
DrOOY is still showing support at its 50 day MA. Sell if it closes below the 50 day MA on above average volume, or if it lingers above its 50 day MA on above average vol. So far it is clinging above its 50 day MA on below avg vol, so its okay for now.
I've been giving myself the same pep talk ;) I wanted to ride it for a medium time frame anyway. I don't know why I monitor those positions so close when I know I have longer ambitions. Just a sick hobby I suppose!
Chad,
At the moment, the only good time frames are either short term (a day to a few days) or longer term (months and so on). The longer term horizon is fine for stocks that are bottoming out (like TTM, for example). It is important to always have a plan for each stock/trade. You should have a pre-determined time horizon for each trade based on chart patterns, technicals, fundamentals and overall market direction/sediment. Longer term stocks should not be touched/bothered if the trend remains the same. For example, AIPC has been facing wild swings since I bought it. Still, the over all trend remained, so I continued to hold it and add on big dips. As long as the stock is showing support on a longer term chart, I will continue to hold it and add to it. Stocks like DROOY and the other gold stocks may be good for now, but once the market truly bottoms, they may run out of steam. They do seem to showing some strength, along with some strong base building. This leads me to believe that the market has more downside ahead. But, I could be wrong.
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