Monday, June 3, 2013

Trading update, game plan and best ideas for tomorrow!

Today was simultaneously a good and a bad day for me. On the one hand, I locked in over $600 in gains and I'm sitting on $200ish in unrealized gains which means my account is now up over 10% from its closing value on Friday. However, on the other hand, I made a total mess of my exits in $OSH and $MNKD. 

With $OSH I sold 1/2 of my position into the gap up at $2.53ish which was not so bad. At least this gave me peace of mind to ride the other half knowing that its virtually impossible for me to not profit from the trade. However, ride I did not do. I got nervous and sold 1/4 position at $2.80 and then sold the remaining shares at $2.99 just as $OSH was breaking out of an intra-day base...big mistake! $OSH spiked a further $1.50+ from there. I should have caught this move with at least a 1/4 position...sigh.

With $MNKD I was totally impatient. After it gapped up following the news on Friday (AH) like I'd wanted and then started dipping...I sold my entire position @ $6.90. I did't even give it a chance to prove that it wasn't going higher and higher it went...closing up 14%+ and a few pennies off hod. The $8.00 profit target I had in mind looks almost a certainty now. Another trade I made a complete hash of.

I sold $SKUL for a loss as I'd planned as it never showed any signs of going higher. I held onto my $SCTY and $SPWR shorts like I'd planned to in last nights post. Although $SCTY hit my target...I have reason to believe it trades lower tomorrow. I will be looking to book it into a gap down or morning panic. My target is the $35/$36 area. $SPWR closed well off its lows after an ugly sell off in the morning. I think I made a mistake by not getting out of it flat before the close of trade as solars look like they want higher now. I will monitor it closely tomorrow and if I don't see immediate weakness...I'll be happy to get out of $SPWR around breakeven.

From a bigger picture perspective, I believe the markets want to bounce. We are very oversold here...just take a look at the McClellan Oscillator. In addition, many sectors/stocks formed hammer candles today after 5 - 6 consecutive down days. I think we get at least a 2 - 3 day bounce here and accordingly I'll be looking to add some long exposure from my ideas below:













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