I was stopped out of SPU at $6.00 as I anticipated for a total loss of $96.00 (correction: $101.50 not $96.00) including commissions ($10.00). I really thought that SPU would blast higher as the markets bounced but it did not. So clearly if the markets were to pullback here it is likely that SPU may drop far lower than my initial stop. So why stick around?
Although I am convinced that we are going to pullback here, I still believe that the intermediate term trend is up. Hence, I am still holding on to NEP and plan to continue holding until I no longer believe that NEP and/or the markets are no longer heading higher intermediate term.
I was contemplating initiating a short position in CYD as I posted earlier today. However, I do not believe that the odds that the potential reward (in light of the fact that I believe we are at the start of a new intermediate term up trend) will offer more than a 3:1 ratio to the risk I will assume. So I am sticking with the plans I spoke about in my previous post My 3-Month Prediction for the Stock Markets.