Monday, April 19, 2010

My plan for tommorrow...

After Friday I was very bearish. However, after witnessing the buying that came late in the day today, I have decided I am going to be a bull for the short term (next couple days) but still bearish intermediate term.

Maybe my research efforts have been poor. But I have only a handful of stocks that meet my criterion for buying on the long side going into tomorrow. And most of them I will not trade because they are in the Chinese sector which I am long term bearish on.

All things considered I have decided to play a potential bounce tomorrow with SLRC. Most of the long trades and even some shorts I have been taking over the past week or so have been off 5-min charts as opposed to my usual, the daily chart. The reason for this is that I have gone into sniper mode. Just get in quick and get out quick. Set tight stops looking for profits of 3 -4 times risk. If something I enter surprises me and explodes past 3-4 R then I will try to "press my luck" and see how many more R's I can get.

I will enter long on breaks of resistance with stops just below intra day support while targeting intra day over head resistance/round numbers for profit taking for long trades. I will give shorts more room and trade off the daily charts as I am bearish on the intermediate time frame.

Here is what I plan to do with SLRC. Here are the two main charts I use showing my planned entry ($22.75), stop loss ($22.45), and target ($23.65).

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