I nailed a prediction of impending doom in WAVX, but its late in the day collapse took me off guard and I had no chance to short, nor were shares at IB once it became obviously weak.
I also called VSTNQ well, but shares disappeared at IB in a flash once the top was put in.
WEL appeared to validate my breakout call long, but it was weak enough over time to avoid consideration. To be fair, it did hold the key 1.80 and closed above 1.84, the previous day high.
I closed for a loss a position in MCGC that was papered on Friday. Sykes closed his own position about the same time about ten minutes into today's session when it failed to move up as he expected, appearing weak and taking into account the weakness of the stock's behavior heading into the close on Friday, where it faded meekly into the finish.
There is something to be said for his cautious approach, which stresses pressing winners and being intolerant of holding positions where the behavior of the equity does not meet expectations. I agree on balance with him.
Some traders argue, that one should not give up too soon and allow technical levels to be exceeded first, before dumping, because it is too easy to misinterpret minor moves and avoid wanting to hold onto gains or limit losses, so objective price levels should be observed and obeyed.
In this case, strong previous resistance at 5 argues that if it holds as new support, one should hold a tad bit more closer to earnings news later on this week. MCGC never fell below 5 today, but I sold anyway like Sykes, because I think this stock exhibited additional warning signs (I noted these already) warranting selling.
Friday:
BOT 200 MCGC Stock 5.36 USD ARCA FEB 26 13:34:02 1.00
Today:
SLD 200 MCGC Stock 5.20 USD ISLAND 08:40:32 1.00
The blog has a terms of service. Be sure to read it at:
http://traderbigt.blogspot.com/2010/02/please-read-my-terms-of-service-i.html
No comments:
Post a Comment