It seems odd to be satisfied with a minuscule gain for the day, but considering how badly I was down earlier ("thanks" to my energy-oriented shorts), I'll happily take it. With the Dow down over 100 points, there was enough green among my positions to make up for all the red from my stinkin' energy shorts. You take what you can get.
The list of stocks-that-never-seem-to-go-down is dazzling – they include AGU, ANR, CF, CMP, CRK, GDP, HK, HP, MEE, MOS, PCX, POT, PXD, and SQM. I just don't have the stomach for momentum-based trading.
The China index sported a beautiful shooting star pattern after perfectly touching the neckline of a head and shoulders pattern (tinted below in green). I like it.
The honeymoon with LEH and GS lasted just a few hours. It seems that investment banks, having delivered news-that-isn't-too-awful, are back on a downward track.
For four days in a row, the Transports have been unable to get above Fibonacci resistance.
And the $NDX, on which I bought puts today, seems to be turning around smartly. I've got a stop at 2,000 on this one.
As I've mentioned, I've been more than a little frustrated with energy issues. In spite of relative softness in crude, the OIH had a very strong day. I'm starting to trim energy positions out of disgust.
Someone mentioned I don't use moving averages; that's not true. I use them occasionally, such as the graph below. Look how nicely the S&P is staying beneath its 100 day moving average; notice also how sharply it turned around after piercing the 200 day moving average (but not closing above it) in mid-May.
I bought some SRS for the first time a couple of days ago.
Ah, yes, AGU, one of the aforementioned insane stocks. I own puts on this (unfortunately). This is one of those "ah, what the hell" trades, but I'm not optimistic. Buying puts on hyperbolic stocks is, errr, unwise.
Many issues I have are near the top end of a descending wedge. DECK is a nice example.
DRYS touched its Fibonacci resistance perfectly today before softening up. I bought puts.
The same can be said with GNK, which is an even more alluring pattern.
IBM is safely below its broken trendline, and I bought puts today, with a stop at $130.
Lastly, VMI is at the top of a broadening formation. Obviously there's a lot more potential downside here than upside.
Please note – once again! – that I am traveling for the next week (Wednesday through Tuesday), so my posts will be perhaps only once per day, and definitely late in the day. So you'll have to talk amongst yourselves. Good luck, to one and all.
