Back in for a bounce

Preserving capital is a strategy The sell off of the past week did a lot of damage. I think the next month will be choppy and to the downside. So, any long positions here need to be on a tight leash with a close stop loss.

We touched the lower edge of the bollinger bands on a lot of stocks. I think we could recover for a few days and that is why I am back in AMZN today. Not that confident that the worst is over but it can retrace 38% to 50% of the decline and that is worth going after.


I am taking a position in TAN here. It has been hard hit and I am looking for a few days of recovery.

I have been reading good things about Evergreen Solar and it pulled back nicely into the base. So, I am long here with a close stop loss.

I am keeping an eye on AFCE here. They are the parent company of Popeye’s Fried Chicken which is my favorite. The stock is very choppy and it could get interesting if it can get above $7.20. On 6/19/09 it got close to breaking out on pretty good volume. Then the market got weak and it has consolidated. The lesson here is that buying a breakout when the market is extended or getting weaker is not worth it.