Sunday, February 26, 2006

Watch list for week of 2-27-06

Highlights from my market homework software this weekend:



Not a whole lot has changed during the past week maybe in part to it being a 4 day trading week, but I should say that I am encouraged by the nice "bull flag" type of consolidation we are seeing on the nasdaq composite daily chart. I am carrying a lot of stocks long right now in anticipation of a market breakout to new highs. As always, I don't know what will happen but I'm always positioning my equity to be on the right side of the market trend on the daily and weekly charts. Right now, that is up.

2 Comments:

At 10:10 AM, Blogger cja55 said...

I was curious what kind of exit strategy you thought was most appropriate for your system to capture gains. Take for example one of your latest picks, REGN, which broke out after touching the 50 sma. I'm not very savvy with backtesting exit strategies so I resort to selling half of my shares at what seems to be an obvious resistance level and selling the other half upon a close beneath a tight moving average like the 10 sma. Thanks.

 
At 8:50 AM, Blogger jontait said...

I tend to trade a lot less aggressively than that in stocks that are trading at new 52 week highs. I use my setups to "dig in" to what may become long term trend following positions. I'm weak handed at first, meaning it doesn't take much movement against my initial position to shake me out, but after I have pyramidded into the stock and my average cost is well below the current price, then I become a strong hand and will not sell easily.

For the plays that look like bottoms for the stock, I will trade in and out using similar exit strategies to what you said because it is much easier to identify support and resistance levels.

Thanks for the comment. Maybe I'll post a few charts of each of these kinds of plays I've done recently with my buys and sells illustrated on the chart.

 

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