Tuesday, August 3, 2010

Update...

I closed my position in ISLN at break even. I am still holding onto IDT but I have tightened my stop loss. I am not seeing follow through in the smaller cap stocks which are the ones I tend to trade. If this up move is real these stocks should be leading higher. However, they are not!

So I really do not want too much long exposure at this point. I prefer to be in cash. The risk of a nasty pullback is now much higher than it was a few weeks ago when every one was crying about double dip recession etc... . Many stocks are too extended at this point and many leaders are not acting like they are supposed to.

So by the day's end I anticipate that I will be in cash and into observation mode.

Defense, defense, defense!

Good luck and good trading!

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