Monday, June 4, 2007

Nasdaq Again Closes Outside of Bollinger Bands

I would feel better if volume was better than average. It's not. Today my chart shows volume on the Nasdaq pegged right at the 50 day average.

Today marked an interesting hallmark as I took my first system pick, from the BobV32x filter- MDCO, buying 250 shares @ 20.15. I set my stop at 4%, or $19.34. We'll see how this trade works out. The filter actually generated two picks, but I only took one. I plan on taking on a max of two positions from this system once I get more comfortable trading it.

I also sold CLWR, 400 @ $19.04 as it looked to make a really ugly reversal candle. This gave me a small loss of about $140.00 I also sold out of LNN, as it looks like the momentum has perished. I sold 300 @ $33.74 for an approximate profit of 4% or just over 400 bucks. I have to say that LNN did pause at the 20 day average today, which normally I would find healthy. However, the huge short interest and the recent series of lower highs made me liquidate.

I also re-purchased 500 shares of GIGM @ $14.90 as the stock caught a serious bid most of the afternoon. $15.00 may still be serious resistance. We'll see.

I have about 26K in cash, and I plan to screen for breakouts and bounces over the coming days to put it back to work. I'm working hard to not be too anxious as the Nasdaq can not trade outside the Bollinger Bands too long before retracing a bit. While, as always, a trip back to the mean would be healthy, if the strength continues, the Nasdaq may just ride right up the upper band for a while.

10 comments:

grant said...

wood-
And I had just completed a nice analysis of CLWR for you!

jog on
grant

Woodshedder said...

Ducati, post it anyway, please. I have relationship with CLWR that extends beyond trading their stock.

grant said...

wood-
Ok, it'll be up in an hour or so.

jog on
grant

mdawsz said...

Bollinger bands are fruity and give the same indication (i.e. fruitiness) about those who employ them.

Woodshedder said...

Mdawsz- were you banded as a boy?

mdawsz said...

No, and I have no first hand experience with fruitiness either.

Woodshedder said...

Speaking of fruitiness, more and more I think Fly is overcompensating for something.

mdawsz said...

I am hearing things through my channel checks.

Woodshedder said...

heheheh lol

Dogwood said...

Guess we don't have to worry about that upper Bollinger Band now!