Tuesday, January 12, 2010

New positions

As you know we sold most of our swings yesterday (CAT DTG PCU CVX), and as we posted to our account this morning we also sold remaining positions (MICC QCOM).

In the late afternoon we started filling up our empty swing account with starter positions on the following stocks all close to support, be it daily support, 20 SMA or 50 SMA. The only stock we did not buy on support was WYNN, anticipating a 70 break-out. We would add on all the other stocks on further support but with WYNN we would be stopped out through today's low as there is no support nearby for a while.

APC on the 20 SMA, will add on 50 SMA if this level does not hold.

CHK near the 20 SMA, would add at 50 SMA.

CNQ on the 20 SMA, would add at 70 and then 50 SMA if level does not hold:

CTRP we bought very late in the day on the 50 SMA -- we'd probably get out of this position on weakness through 70 and possibly try again at 68 support.

MOS we bought in support area, would add at 61

PCU we sold yesterday close to 37 and picked up today at 34.87. We would add to this position on 34

SU we bought on the 20 SMA test, would add on 50 SMA

UPL we bought on 50 support but would add at 49 on 50 SMA

WYNN we bought not near support but on anticipation of break-out. We wouldn't add to this position and if weakness would sell through today's low.

The best thing for us would be if these levels hold and we rally tomorrow (already in the money for most of the positions thanks to a late day rally). The worst thing for us would not be weakness tomorrow but instead flat action. Why? Because if we selloff tomorrow we would be very oversold on most of these stocks -- we would add (all positions are starter 25% positions thus far), lower our average, and most likely get a nice bounce. However if the stocks do nothing but base at these levels then most likely we will go lower without any meaningful bounce for a while. Consolidation is never a good thing when you're buying support.