Thursday, January 27, 2011


I was all over the place today.  Bought weakness in CEDC and it got weaker.  And all day - I knew exactly what was going up.

Volume makes the world go round and today the volume was in CRUS and CCME -- these trades were easy but I could not get comfortable finding an entry and just watched them climb all day. 

But I can see there's something odd going on.  The market is in love with a few stocks far too much -- like NFLX and CRUS and AMZN and that usually ends in tears.  Case in point:  AMZN just reported and just got clobbered, losing all its wonderful gains for the day in 4 seconds.

Meanwhile, the gold, silver, oil names are weak and getting weaker.  The market perhaps is thinking about rate hikes in the future (as well it should).  Record food prices is not good for any economy.

Well... it's been a weird month.  I did great the first 2 weeks and then it went quickly downhill.  A lot of second-guessing myself. 

One thing I did right - sort of - is take a lot of these losses quickly.  I gave back a small piece of the gains so it's good to remember what is correct thinking and maintain that.  What I need to do more of is: Buy Strength.  That's what worked the first two weeks. 

 At the moment my best holding is PLNR and I like what SKX is doing. I added some GCI which was acting strong but I managed to pay the high of the day (one penny less) and then it dropped back. So let me be an example of what not to do as you progress to master trader status. 

The other thing I did is sell my YHOO position as it ran very fast and I made the huge mistake of buying too much.  I got out at a very small loss and now I will rebuy it but maintain a proper stop. 

So overall - it's been another week of pain.  Hope your day was better.

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