Tuesday, August 02, 2005

Watch list for 8-3-05

Here is the latest watch list from my market homework software:

ABLE
ANTP
GOAM
DGIN
CVO
MNTA
SPIR

Not very many stocks are consolidating right now at all, which makes a lot of sense if you're looking for a speculative blow-off market top. If we gap up tomorrow I'm going to sell and short like crazy. Every time I've tried to short in the last two weeks I've lost money, but sooner or later I'll be right and make it all back and more. I could have done much better if I wasn't so cautious, but I'm up about 20% over the last month playing a lot of the stocks I've written about here, and I figure a lot of other people are looking to lock in similar gains when it becomes apparent that they will be able to buy back at cheaper prices later in the year.

Sooner or later in a rally, the risk vs. reward for carrying a long position gets out of whack, usually right about when you start to feel invincible. At that point its not a bad idea to take some money off the table. I've been doing this a lot lately and it feels even better than carrying naked paper profits. I've got to stay focused and keep my eyes on the ball.

I wanted to thank Gorden Gekko at The Knight Trader and Budd Foxx at The Visual Trader for linking to some of my coverage of VLFG over the last couple of weeks. And for whatever its worth, I'm probably going to be dumping my small VLFG position soon, it feels extended. Remember, its all about risk management :0

1 Comments:

At 11:20 AM, Blogger jwu said...

what strategy do you use to determine when to exit a stock like VLFG?

 

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