Wednesday, February 17, 2010


As we posted on our Twitter acct several times near the open "Instinct today , thus far, is to fade, not buy". Market was extended after trend day yesterday -- and it's very rare to get two trend days in a row in an already extended market.

To put it in a brutally simple manner -- for traders like ourselves there are two main strategies going into the day. Trend day strategy is buying break-outs, shorting break-downs; range-bound strategy is selling rallies, and buying support. Of course the hard part is figuring out early in the day which strategy to implement. We use our alerts as "tells" to help us decide what to do: for example CREE we had target long to 64. The stock set up base and break at 63.6 but only made it to 63.75 before reversing -- this was one tell out of many that made us think that we needed to use range-bound strategy of selling rips/buying dips instead of trend-day strategy of looking for break-outs/break-downs.

Copper very extended and reversed today -- needs to digest the big gains from bottom.

KOL reversed at 50 SMA

We're long a few RIMM in anticipation of 72 break-out. We trade around core positions, adding on dips, selling on rallies, while keeping core size. Quite likely we're early on this as it could test 68 support. Average right now is 69.8

We're long swing FFIV anticipating 54 break-out-- again, we'll trade around core position. We're long average 53.2 (posted on Twitter this morning). Update we sold it all 53.8-53.9 on this run -- we don't want it to break-out today and will buy on dip. If it breaks-out, we're not going to chase.

We would like to focus on tech more and less on commodities going into near future.