One new earnings breakout and close on four previous shorts | stockbee

3/14/2008

One new earnings breakout and close on four previous shorts

Market Monitor: Bearish
  • The reversal after a ugly open was encouraging. However market is volatile and news driven. None of the numbers as yet are showing improvements in breadth on Market Monitor.
  • However a 1000 plus breakout day on Market Monitor indicates a probability of move in the same direction.
  • For all the negativity in the press and by various commentators, so far this market has again and again found it tough going below 20% level on downside so far.
  • The current environment makes it tough to hold longs for longer duration. It is a market for very nimble day traders.
  • Few stocks with leadership characteristics have started to breakout. But volatility increases chances of whipsaw.
  • So very low risk levels and very few positions is the approach I would be taking. So instead of risking 1%, I will risk around .25% per position and try and keep overall risk to around 2 to 1% only at this stage. more

No comments: