Since the market opened this morning, I've been able to post some incredible gains in my long positions in CMG, NFLX, UA and HD. I actually sold a bit early in Netflix (NFLX) at $77.68 from $70 due partly to my incredible distrust of the stock – only to see it march higher to $80 (which actually doesn't bother me, stocks have the right to move higher or lower once I get out). But I am surprised by the early bullishness in my holdings despite the market weakness.
The one thing I was wasn't planning on this morning though was going short any stock, but mainly my reasoning for doing so is to add a minor hedge to the portfolio, in case things really try to get nasty either today or tomorrow, as we managed to get parabolic, to a degree in the short-term, and could be facing a pullback.
Overall, my total exposure to the market consists of 4 long positions, and 1 short position. So I still remain bullish on the market but just wanted to add some balanace to the portfolio in the wake of recent market exhuberance.
As for the WLT trade in general, I'm a big fan of the shot-term channel formed off of the June highs, and how it continues to sell-off on each test of the upperband (3 times and counting). So if I can cover this trade in the high $42's/low $43's I'll be giddy as can be. My entry into WLT is at $45.81.
Here's the short setup in WLT.
Check Out Ryan's Blog at SharePlanner.com
