Market Update
Well, it's been a great week for us so far, all on the short side. Our selections from last week (BDK, CNC, ESV, FRK and GGC) have all been very nice short trades. We did have our stops set tight on most of these and have locked in solid gains. All in all, we're up 30% on our entire trading account this week--not bad!
In addition, we've entered 2 other short trades, FAST and SBUX that are doing quite well so far.
Currently the DOW is holding firm at 10,700 resistance. If we break that, we may be in for another strong move down. Likewise, the NASDAQ is forming a bear flag now, with a close below 2,025 likely leading to further drops. With 2,000 closeby, we'll be watching that index very carefully.
At this point, we're no longer looking at any long trades. We'll be bearish until the DOW begins to move up (and we may wait until we have a close above 11,000).
With the skittishness in the markets, the turmoil in the Middle East, and comments due from Mr. Bernanke this week, the word of the week is "nimble". We're more likely than normal to lock in profits (where in a more stable market we may give our trades a bit more leash). These days are not for the faint of heart, but profits are there for the taking, for those bold enough to trade.
In addition, we've entered 2 other short trades, FAST and SBUX that are doing quite well so far.
Currently the DOW is holding firm at 10,700 resistance. If we break that, we may be in for another strong move down. Likewise, the NASDAQ is forming a bear flag now, with a close below 2,025 likely leading to further drops. With 2,000 closeby, we'll be watching that index very carefully.
At this point, we're no longer looking at any long trades. We'll be bearish until the DOW begins to move up (and we may wait until we have a close above 11,000).
With the skittishness in the markets, the turmoil in the Middle East, and comments due from Mr. Bernanke this week, the word of the week is "nimble". We're more likely than normal to lock in profits (where in a more stable market we may give our trades a bit more leash). These days are not for the faint of heart, but profits are there for the taking, for those bold enough to trade.
posted by Dan at 1:19 PM
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