Friday, August 8, 2008

Trade Updates

Looks like yesterday means nothing and the tough market conditions are going to remain with us for a while. I covered two short positions this morning for small losses - LVS @ $49.59 for a 2% loss (I took this position at the end of yesterday as it reversed at the 50 day MA) and PACW @ $21.60 for a 3.5 loss. I am still in two short positions with small profits, but don't know how long that will last - I tightened my stops and am assuming they will be hit soon.

My stops were also hit in my QLGC long today and I exited with a 0.7% loss. This stock is a good example of how good looking stocks aren't acting well in this market. It had a nice earnings-related run-up and then formed a very nice flag pattern. It broke above this flag pattern Wednesday perfectly on higher volume, and looked very good to me. Then of course it went right back into the flag pattern yesterday and that continued today. A healthy market with healthy stocks doesn't act like that. I just went through my long watchlist again and see no stocks I am interested right now even with the market up over 100 points.

By the way, FSYS is a good example of how a earnings play is supposed to act, at least so far. I didn't think much of it last night because it only beat by a few cents and I figured the beat was baked in by now. But the way it took off right at the open and keeping chugging higher is exactly what you want to see in an earnings play. I am not chasing here - knowing this market, it will reverse and hit $40 by tomorrow.

I think I may go back on vacation for a while - just when I thought the chop might be ending based on various signals I saw, we just get more of the roller coaster action. I am certainly not looking to buy here with the market so overextended and good stocks acting so poorly, but shorting looks to be futile as well. Have fun. I am likely done for the day.

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