My previous post today about SDS explains everything. This week we are just like S&P. And its twice more regretful to be like S&P days like this, when there are great exploding stocks like VG (yesterday), PLUG, AEZ (today). We reduced PLUG by 2/3 and booked 50% profit. Closed AEZ (for now) with 165% profit from the first entry. What could be better than that? And with such great winners we are up +0.7 +0.8% today. SDS, our insurance, eats all extra profits. I posted today explaining when I plan to reduce it. It doesn't matter where we go, up or down, we need to reduce SDS as it is a burden for now.
Bulls and bears are trapped in 1020-1080 range and we can't be sure where we are heading until the range is in play. What we can do is to harvest crop from huge runners on days like this. I don't want to initiate any new positions for two reasons. First I already mentioned. The second - I am gone for the next week. Will have EXTREMELY limited access to web and trading. May be once a day after market close will be checking if any limit sell orders have been triggered. So, if you follow my trade alerts, please keep this in mind. Next week don't rely on me at all. Use the core strategy description to decide whether to sell any of day winners. As for buying, I would hold on next week. Market should reveal its next direction pretty soon and something tells me, it may be different from what we've been observing since March. Everybody is talking about positive earnings in Q3. No doubts, earnings should be ok, at least not worse than in Q2 for many companies. But the question is, how much of those good earnings already priced into the stock market, and how much is left. Best case scenario for bulls, IMO, will be holding current level till the end of the calendar year. Actually perfect market for penny stocks, but before that we need to get rid of SDS :-)
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