Tuesday, April 12, 2011

Watches for tomorrow....



Although I did trade $COOL; it never triggered as per yesterday's watch list plan. In principle, there were only two triggers: $CYTK and $ROYL. Both got off to good starts exploding through the trigger levels with massive volume and following through immediately. $CYTK, I suppose under the weight of the weak overall markets collapsed through the entry level on massive volume and clearly failed...there was no reason to wait for this to hit your stop loss before exiting. $ROYL got off to an excellent start then announced very bullish news in the afternoon which caused the stock to spike dramatically. However, prudent stops and/or alerts should have averted any disastrous loss on this position if taken. In my opinion, the markets are now very over sold and due for a bounce although they could drop a little further before doing so. As I have stated in my previous post, I longed three stocks ($GLUU, $DUSA and $SABA) in anticipation of a bounce in the near term. Even if I get stopped out of all three positions, I will still be looking to get long the most enterprising long set ups from the list above should the markets prove they truly want to bounce. So that's my plan for tomorrow in a nut shell.

Good luck and good trading!

No comments:

Post a Comment