It looks like the profit-taking that started yesterday could only last a couple hours, as we saw a very weak open across the board before a pretty powerful rally into the close. This pains me because I was away from my desk for the morning and was unable to bottom-tick today, then I saw the stocks rally with little relent. Oh well. It happens. The perils of having an actual dayjob. I bet a lot of stops were taken out this morning, and probably a lot of traders saw that they bottom-ticked their sales (not something that happened to me, but again, oh well, it happens). The only thing more frustrating than the former is the latter.
Earnings season resumes this week as we get some big ones coming into Friday's trading (Intel reports Thursday night and JP Morgan reports Friday morning). Those will likely leave us with a quiet day of trading tomorrow, but some fireworks on Friday.
For trades, I took a call spread in CBI today with the February $20 and $22.50 calls for a net debit of $1.50. I totally botched the entry of the buy leg, but did well on the sell leg. I tried to get into CBI near the lows of the day, but I got too cute with my entry and subsequently had to adjust the trade, entering it higher than I wanted to. Had I been better with the buy leg, I probably would've been able to put this trade on with something closer to a $1 or less debit. I have a bad habit of trying to get too cute with entries and exits by trying to bottom/top-tick, and today it cost me money. I need to work on that and get better by just setting my price and letting it hit.
The FUQI call spread didn't really move much. I've found that I like starting an option position in a stock with a spread rather than an outright purchase because it helps me minimize my risk. Sure, it caps my reward, but since the spread is committing some, not all, of the capital I'm willing to put into the trade, it's a good way for me to get myself involved. It helps with the bad habit I mentioned above.
CEU and EMR also put in nice hammers today, more pronounced than those from FUQI, CBI, or UTA. I missed the big plunge in CEU and EMR this morning, but I'm not terribly concerned because I think I'll have the chance to catch CEU and EMR. UTA bounced right off its 200-day EMA today, and I missed the chance to get in there. Like CEU and EMR, I'm not concerned there, either.
CRE's hanging right in there. I think the 50-day EMA has now become support. I'll take a starter here in the IRA soon, as well.
RGR, SPAR, and GME didn't really do much today, and there's no real change to their technical pictures.
ARO and ROST are both trying to work their ways higher, but I'm still not quite convinced. ROST had a screen score update. It's back to 3/3 from 2/3. The James O'Shaughnessey screen took ROST from 75% to 100%.
Position: Long CBI, FUQI
Disclaimer: This is not a recommendation and is presented for informational purposes only.
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