Monday, February 22, 2010

Update

I am still holding onto my 300 shares in NEP and will continue to do so until I am stopped out or it becomes very obvious that the markets are heading lower intermediate term.

Since I believe the markets are in an intermediate term uptrend, I will not take on short positions unless and until I believe this has changed.

Even though I believe the markets are in an intermediate term up trend I will not take new long positions since the markets are extremely over bought short term. For instance, the RUSSELL 2000 has closed higher than the previous day for eight days and in row now and today could be nine. This does not happen too often and increases the odds of a short term pullback dramatically.

Even if the markets continue to rocket higher without a pullback I would not mind since I am already long NEP. However, should it pullback it would allow me to initiate new positions and possibly add to NEP at lower risk. So that is my stance in a nutshell.

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