I didn't do anything today. No setting up for tomorrow, no day trades.
Reason? This week's whipsaw can slam us silly if we are not careful.
Yesterday we saw the nasty reversal in the markets, leading people to believe a selloff may be in the making. That got a lot of bears on board. Bam, today is an immediate reversal to short squeeze and shake out bears once again.
But could this be the tactic to get enough bulls on board to whipsaw them all out tomorrow?
It is too hard to say right now. This is why I just have my cash parked. Whatever exposure I have is what I'll keep.
I am on the run today, I'll update more later tonight.
- DL
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4 comments:
Hey there X,
Again, great blog...Love reading your posts here. Great insight.
Can I ask you how and where you learn your technical analysis reading ?
I was looking for some stock and since I know you love shorting stock, I stumbled upon this one who seem to be a pretty good candidate no ?
http://stockcharts.com/h-sc/ui?s=CCC&p=D&yr=0&mn=6&dy=0&id=p76668060954
I'm just a beginner here who tries to understand how all this is working :)
Cheers,
Maiike
Hey,
Currently I am working only with options. So I have some candidates
(I developed my own application which analyzes 5200 stocks daily) for any scenario tomorrow. So quick action on:
- Puts or short on WOOF and V
- Calls or long on DDR and M
About CCC I would wait for any bearish signal at Stochastics or RSI (it is not showing any reversal yet).
If you really want something that will fall abruptly, try WGOV. It showed a huge jump after its earnings a couple of weeks ago. Yesterday, Cramer commented about this company, and it rallied more 16% today. By far it is completely overbought!!!!!
I also would like to thank you for your blog. I made a bit of money on your ENER tip (my brokerage let me short it)- and rather more on PWRD - but I share your confusion about the current state of the market.
You are a "must read" each morning.
Thanks for the comments.
Maiike,
I learned technical analysis through taking seminars, reading sites such as www.investopedia.com , and most importantly, following the footsteps of other technical analyst who are good at the craft. After doing it for a while it becomes a lot better and you get more and more intuitive in terms of understanding where the stock could go.
The play you have does look very extended. I don't know what the company does though have to look into it. But from a glance, that looks to be a potential short candidate.
Annoymous,
Good tips and advices, please come visit my blog often, I will enjoy your insights very much!
V,
I'm glad the trades worked out for you. It sucks we missed out on a big one the past couple days (SOLF)!!!!! Up over 20% in two days...sometimes thinking too much could prove to be bad as well...But lets keep our eyes open and keep working at it.
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