That being said, as you can see below we are at the top of a five-month trading range and it is not impossible for the market to roll over here and form a massive head and shoulders pattern. I am not expecting it, but you always want to be ready. Given the move we have made the past two weeks, I did start a hedge via QID today and have a watchlist of shorts (DECK, SINA, SOHU, BEXP, and some others) ready to go. Hopefully I won't have to do anything with that watchlist, but you always want to be prepared.
I've been long since last Friday with a few names (QTWW, MOBI, YOKU) and added some more names today (FLT, DANG, LAD, MOBI). I closed my first MOBI position today around $9.76 for a 30% gain as I planned on selling it around the 50 day MA, but given the strength it showed bouncing back in the afternoon, I think there might be one more day of momentum so I went back in for a short-term trade. All of my trades are listed here - I try to keep them as up to date as possible.
Here are some names to watch from here. We're still in a good environment for buying stocks but just don't get complacent. If you have a position really taking off, there is nothing wrong with taking some profits as it moves. Be alert to for this market potentially turning soon. As long as it acts like it has the past few days, then there is nothing to be worried about, but it is the summer, and summer trading can be tricky and volatile, so always be prepared. Good luck Thursday.
DAN, AERL, ACTG, IRWD
IPSU, WIFI, LAD, FNGN
All Charts from Telechart, Courtesy of Worden Brothers, Inc.