Monday, June 05, 2006

Watch list for week of 6-5-06

Everybody probably thought I was nuts last Monday morning when I said we were in a short-term rally and the naz closed down like 40 points. I didn't sell a thing that day. Like I've said before: most days your best move is to do nothing. It was for me, the naz ended the week up 9 points; its second consecutive up week. In fact, on Wednesday morning I bought some TZOO shares just above its 50-day SMA. TZOO hasn't broken out yet, and sure enough it made an appearance on my market homework software this weekend as a buy candidate. I'll be adding to that TZOO position if it does in fact break out.

I'll be watching the nasdaq very closely over the next month because it has made a significant lower low, taking out the low put in at the beginning of the year. I don't sell profitable long term trend trades when the naz is having a correction off of a fresh higher high, even if the pullback is extreme like this one in May, but I will be closing out those positions if the naz makes a consecutive lower high and lower low, completing a bearish head and shoulders chart pattern. This is the period of the short-term market cycle I love right now because you can make a bet either way on contracting stocks and you will win as long as you realize any losses quickly. Most of my bets over the next couple weeks will be on the long side, but after that, I suspect on the short side.

At the end of April I mentioned on the blog being up about 60% for 2006. In fact, I was up as high as 69% before the correction occured, but I was already unloading my weaker holdings. So how did I hold up through this recent correction? The gain in my discretionary stock trading account for 2006 has shrunken to 32%. Maybe I shouldn't be talking about this on here though because I don't want it to turn into a competition, but I do want to inspire people to learn about my style of discretionary trading and to strive for better emotional control and psychological discipline.

Well, the premier of Korgoth just came on cartoon network for the second time tonite and it actually looks kind of cool. I missed it earlier tonite but I'm going to watch it now, so I'm done talking ;)

Here are the highlights from my market homework software this weekend:


At 6:53 AM, Blogger Roberto said...

FNSR has been one heck of an up trending stock for months now. I like it... You really like those triangle patterns hey? I love em espically when the equity has a huge short position.. Good luck trading and nice work on the blog.

At 2:24 PM, Blogger jontait said...

That's right. My favorite is when the float is small, I actually check the float size on a lot of the symbols that show up on my watch list. Anytime there's a small float and a big runup, it is almost guaranteed that the short interest will get ridiculous. Thanks for the comment :)


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