I started shorting beginning November because the markets were showing what looked like the beginning of a down or consolidation period, on November 12 the SP500 closed below its ma(10) and on Nov 26 a clear downtrend line was formed suggesting more down prices to come.
Things didn’t work out as planed as the markets broke above the down line beginning December. My shorts didn’t perform so I started covering and opening long positions.
As markets continue going up, this Monday I have 4 profitable longs and one losing short. A quick graphic review of my longs follows:
Roc was bought on November 4 on the strength of the basic materials group. Roc held up great the November downtrend as it stays within an ascending channel. Beginning December Roc started a steeper tighter channel. As of today it is my best performing stock.
I entered CPNO on November 22 and right after I bought it started going down. CPNO held above the down line of the up trending channel. Let’s see where this canal takes the stock. I will start to worry if cpno closes below the low up trend line.
WMS was bought on December 3 as the ma(50) crossed above the ma(150) producing a very positive long term signal. The stock looks a little blown up now after it traded for five days above the upper Bollinger band. The ma(20) should acts as support.
My latest addition is CELL. I got Cell on December 8 as the stock broke above the bullish flag-type consolidation pattern.
If the markets don’t throw us a split finger ball again, those longs have good potential. For adding to my longs I am considering MGI and AKRX on the new strength of financials and the ever interesting health sector respectively.
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- Erick Stern
- I am a civil engineer who likes charts, to me, speculating in the markets is both a hobby and a second profession and in my view the stock market is the most honest environment, since it is only your knowledge and preparation that matters. I live, and work in the construction industry, in the Dominican Republic. I read and answer all my mail so please feel free to write firstname.lastname@example.org Thanks, Erick