Wednesday, February 24, 2010

Update and Setups for tomorrow

Enough with the experimenting! Sold AAPL 200 10 March Put Option Contract at $520.00 for a loss of about $30.00 including commissions. With the markets showing so much strength today I did not want to risk being on the wrong side especially since I am still convinced this is the start of a new intermediate term rally.

Below are setups I will be watching tomorrow and for the rest of the week.

Now that the indexes have pulled back and are attempting a bounce I am once again interested in going long stocks. YUII is one of the best ideas I have at present. It has formed a text-book CANSLIM cup with handle base. The buy-point according to CANSLIM rules will be a move to new highs or roughly around the $12.00 level with an 8% stop loss. However, by that time YUII and the markets will be overbought and buying will be relatively risky short term! I on the other hand like to buy resumptions from pullbacks either just prior to a breakout (e.g. YUII) or just after (e.g. ASPS). My buy point on all the set ups above is on a break of the high of the previous day with a stop loss below the low of the previous day. If they do not trigger tomorrow, I will continue to look for entry until they trigger or break down like NEP did today.

Whoooppss!!! Thank God I sold out two days ago although I would have been stopped out on the previous day. By the way, NEP is now off my watchlist.

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