Saturday, February 21, 2009

Waiting for a retracement to short into

I've been waiting patiently for shorting opportunities.
I missed my chance in ADSK,
since it broke the supporting trend line, retraced, touched it underneath, then closed down on the day.

Now I'm looking to short EPD:








And my favorite sector for going long in the past few months is now a great shorting opportunity:

As to my bad ideas this week:
SPILIt is not outperforming SPY, which is a requirement for all my long positions that are not small caps that don't correlate with the market.

TMXand the good ideas: (so far, so good... so what!)
ALXN
It touched the supporting trend line and bounced back, perfect. My biggest position because the trend is strong and the chart is beautiful.

MRVL Closed up on the day and touched the trend line. I initially got excited when it broke out but I knew patience pays, and SPY ready to tank at the time, so I kept it on my watch list and waited.
I will add to this winner on a break of resistance at 7.60

TDG

It closed right at the crossroads of supporting and resistance trend lines but still above horizontal support at 35 on very high relative volume.
I initially bought 200 shares, but soon realized I was overexposed for a first entry on a trend that hasn't proven itself sustainable yet, so I cut off 100 shares slightly above my entry. Its a volatile double-digit small cap and as such, tight risk management is absolutely necessary.

I'm also looking at AVAV, a recommendation I read at Centrifugal Deforest's recent blog.
Another pretty chart:

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