Monday, July 12, 2010

Added one new short position...

I initiated a new short position this afternoon by shorting 100 shares of CSTR @ $46.30. I have placed a stop loss where above where I anticipate will be a pivot high @ $47.75. My target is near the recent lows or around the $42.00 price level.

This afternoon will be telling. If we get a strong rally into the close then I may be forced to cut back on my positions if the individual stocks also rally hard. However, I am leaning in the direction of allowing the individual set ups to play out even if the markets press higher. Since stocks often top even before the indexes do and I am convinced that we will at least see a short term pullback this week if not a full on sell off like we got late last month into early this month.

Never the less, I have my stops in place in case I am wrong and my total risk exposure is less than 5% of my account on both positions including commissions. So although I would love to see these stocks sell off, I will certainly live to see another day if the markets continue to rally hard in the coming weeks.

Good luck and good trading!

No comments:

Post a Comment