Thursday, July 8, 2010

Update...

I am still long of CRME and LCAPA. LCAPA has been acting beautifully thus far and I see no reason to sell this one. CRME, on the other hand, has really shown little signs of life. Although it had not moved up significantly yesterday with the market, I expected some volume to come in today and for price to really move up but so far neither has materialised.

Although I like the price patterns in LCAPA and CRME, I am not very confident in the overall markets yet. So I am contemplating selling out atleast half of my position in CRME near the close if it does not look likely to close strong. Also I will not add to my existing positions or initiate new ones until the market indexes break down trend lines and reclaim their 50 day moving averages.

The recent rally has caused some of the weaker stocks to rally up to their 20 day moving averages and some of these stocks now look like attractive short set ups. So I will be looking to initiate a few short positions this week and early next week unless the markets really rip higher. These shorts will also act as hedges to my current long positions should this bounce turn out to be a failure.

Good luck and good trading!

No comments:

Post a Comment