Tuesday, January 18, 2011

Market Talk

On the bullish side we've had six triggers today from our newsletter and all are green and gave a good trading opportunity  (in that they all gave at the very minimum 2 x risk/reward).  

As extended as this market is we will only stop looking long when we see two things happen:

1) broad sector/breadth sell-off instead of rotation
2) support buying stops working as dip buyers stop showing up.

However, one note on the cautious side:   our best set-ups, one's we have been stalking for many days on the newsletter, all triggered today (MELI CAT ATI CRS CMI AGU).    We don't have that many good set-ups left and what this often indicates is that the market is heading towards increased volatility.   Because of this we'll only be swinging partials on any trades initiated today and only the ones that give us a comfortable cushion.
Update: we ended up swinging no positions from any trades that were initiated today (even though ATI CRS were decent candidates we opted to just cash it in and raise cash)  and only have left partials on SLW BRCM in our trading account from last week.    (BRCM SHLD in LT account).