Tuesday, February 9, 2010

New Position

On the back of the early strength in the markets, I have added a third position to my portfolio. I bought 400 shares of FSII @ $2.98 this morning with a stop at $2.75. With the T2108 closing at 22.21 yesterday and the markets being extrememy oversold after a near vertical decline I still believe that the markets will bounce for at least a couple days if not reverse into an intermediate term uptrend. I am now risking most of my December and January profits or about $440. T2108 readings in the sub-30 region during early stage bull markets are very powerful intermediate term buy signals interms of risk/reward. I would not regret losing all my profits at this point as I stand to make a killing if the market bounces but will still survive to fight another day if it does not and continues to decline.

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