Tuesday, September 18, 2007

Today Could Have Been Worse

While it turned out to be dumb to go into today with index shorts, at least they were small positions. I covered them on the first dip after the Helicopter Ben announcement. All in all, I lost about $1,500 on my shorts. However, due to my purchase the other day of SLB and GLD, and my purchase today of VDSI, I finished down for the day only about 500 bucks. Not bad, but I know other traders who went into the day long and made a killing.

So what is my strategy here? Fully, everything I've done over the past 2 weeks has been completely wrong. Keeping that in mind, I'm going to do the opposite of what I want to do. What I want to do is to go on a buying spree tomorrow, so what I will do is mostly nothing. I intend to watch the action tomorrow, possibly establishing a few small, initial positions. I'm finding that starting small positions fulfills my desire to stay in the market, yet allows the position to move against me without causing me any real pain. That is important because usually I sell near the low of the dip. If I can hang on, typically the position moves back into profit, and then I can decide whether I want to add shares.

I intend to continue working on a watchlish of long candidates. Many of them are breakout plays, or pullback plays.

Update: Here is my updated watch list. Some of these are breakout plays, some have broken out and need a pullback, and some have pulled back and might be near a good buy point.

LWAY CSCO MORN BBY SHW TRAK BLUD MA DE AMX TDG PCP DRYS AAPL TBSI HLIT GMST AVCI GILD QMAR

6 comments:

Kevin Hsu said...

I wasn't short today, but I also entered with small positions. Like you my inclination is to go on a buying spree tomorrow. But we shall see... good luck for the rest of the week.

Sierra Water said...

Ahhhhhhh... This is real nice Woody. I may jump on AAPL tomorrow. I have been wanting to for awhile..

Woodshedder said...

Sierra-Me too on AAPL. I also like GMST. Well hell, I like all of them, that's why I'm watching them...

Kevin- good luck to you as well.

Woodshedder said...

Also, I think CAT should be on the list.

kyel said...

Wood, been buying AAPL on the dips. I haven't heard anyone say that with the 50bps decrease and weakening of the dollar if the Fed continue to cut, AAPL profits in Europe will be much larger. UK iphone sell for 269UK =560USD. It is as if they had no price cut in UK. Anyways, I added more AAPL yesterday

Woodshedder said...

Kyel, what happened to AAPL around 3:30 today? It just fell off a cliff for a while there.