Weeks like the last one are very frustrating to people who have an opinion about the market and ignore what the market is doing. That is why having a game plan and being able to admit that you are wrong are skills you need to make money in the market. I completely missed the boat with AMZN this week because I had an opinion and did not follow my rules.
I had a good week. But it could have been a great week if I had choosen to go fully invested. I am still very defensive here and 75% in cash. The market is very overbought here. I am looking to buy the pullback over the next week or two.
DXO had a great week. I am still long and keeping a tight stop on the trade so I don’t give back the profit.
I sold AHD on Friday. With the strength in oil, it should be flying. It did not, so I took the small profit and will wait for more clues.
URZ had a great week. I think it will consolidate here for a few days and then give a clue about the direction of the next move. I am keeping a tight stop loss on this trade.
One of my favorite chart patterns is to buy the first pullback from a new intermediate term high. I bought MDRX for this reason and it bounced perfectly. Unfortunately, it gapped lower on Friday and spent the rest of the day recovering. I think they are reporting earnings on Monday. So, this was the reason for me to take a small profit and to see what happens. Sometimes gap downs are just the marketmakers playing games to wash people out of their positions. Other times it means someone knows something and they want out of the stock bad. That’s why I got out. It is not worth the risk. Best case here for MDRX is that the earnings report is a non-event and the stock consolidates here for a few days. If it can do that, I will consider getting back in.
ESLR has turned out to be a dog. I am down about 5% in it. The chart pattern could go either way here so I am probably going to take the loss on Monday and wait for the solar group to give me more clues.