Early bird gets the worm

Those trying to catch up with the market now have real dilemma. Much wider stops are needed to get on to moves. It is much more risky. If you were bullish since August, then you would be now sitting on some nice profits. If you started building positions at the start of the earning season, you would still be sitting on good profit.

Now that the market has entered more speculative phase the risk is significantly higher, but at the same time some of the best and vertical moves happen late in momentum cycle. To trade those kind of moves, you first need methodology to identify those stocks, you need guts to act quickly and you need ball of steels to hold them through some scary moves of 20 to 30% plus in few days. Not everyone is comfortable doing that.

So if you have missed out on profit opportunities, you must do some serious soul searching about your methodology and deeply held market beliefs. So many people have rules about trading, one of the most popular one is "Trade what you see and not what you think".

Are you a trader or a rule maker

Since August you could see market going up, stocks breaking out, so why were you on sideline. As I have said before it is very easy to make rules , but very difficult to practice them.

Here is what I have positions in or looking at based on yesterday's action:


ALTH,Allos Therapeutics Inc.
AXR,Amrep Corp
BITI,Bio-imaging Technologies
CNTF,China Techfaith Wireless Communication Technology Limited
CRAY,Cray Incorporated
CYBX,Cyberonics Inc
DDS,Dillard's Inc
DKS,Dick's Sporting Goods
EFUT,E-Future Info Tech Inc Ord
EHTH,Ehealth Inc
FFH,Fairfax Financial Holdings
GOOG,Google
GRRF,China Grentech Corp Limited ADS
ICE,Intercontinental Exchange Inc
ININ,Interactive Intelligence
ITB,iShares Dow Jones US Home Construction Index Fund ETF
NTST,Netsmart Technologies
NTY,Nbty Inc
ORCT,Orckit Communication Ltd
PIR,Pier 1 Imports Inc
RICK,Rick's Caberet Intl
RKT,Rock-Tenn Co Cl A
SRSL,Srs Labs Inc
VSNT,Versant Corporation
WCI,Wci Communities