Cute

July 2, 2008 – 11:43 am

Earlier today I tried to get cute by buying a falling momo name, [[SQM]]. Not very long at all, I was quickly awarded the homo hammer of death– needless to say, I was stopped out for a nice loss.

I then again tried to get cute with [[AAPL]], however this is one I will hold. You see, I still have a number of shorts on the table, many of which are doing great today, and have found in this type of market it’s best to have your shorts paired with a few longs. So AAPL will stay on my long side, while the likes of [[MA]] save my portfolio from destruction.

Top Pick: Anything short, paired with a strong long.

This entry was posted on Wednesday, July 2nd, 2008 at 11:43 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

9 Responses to “Cute”

- Says:

dont intend to be a pest here, but are you still holding ICO ? I had a heavy position and is killing me. I see some support at around 12 so am holding as a drop below 12 could really kill it.
July 2nd, 2008 at 11:53 am
RaginCajun Says:

Everything is getting shot at.

ICO happened to be a bull flag breakout that failed. I had a bunch of 15 calls that are now about worthless.

If I owned a heavy position, I would likely take some off the table, and wait for a better entry.
July 2nd, 2008 at 11:58 am
boca Says:

- (not sure of your name) when a trade makes me feel really uncomfortable, I take it as a signal to get out or pair it with protective puts. Your mileage may vary.

Just set your limits or stops where you feel comfortable, IMHO everybody has a different threshold.
July 2nd, 2008 at 12:01 pm
- Says:

thanks Ragin !
July 2nd, 2008 at 12:02 pm
- Says:

thanks boca
July 2nd, 2008 at 12:03 pm
boca Says:

FYI I own the shares (not a huge position) so I can sit tight for quite a while.
July 2nd, 2008 at 12:12 pm
The Fox Says:

Boca,

I took a short position in CAT at $74.15. Any ideas when I should cover? Thanks.
July 2nd, 2008 at 12:16 pm
boca Says:

Fox, I might sell my CAT puts today (with a nice profit) simply because I want to close them out before the holiday weekend. I want to hold as little as possible over the weekend, and today is looking good to sell them.

Ragin is the expert on the charts, but I think CAT could easily go to 70. In the past sometimes 70′ish has been psychological support. I don’t want to say anything more until I see whether this is a short term bottom for the market or not.
July 2nd, 2008 at 12:31 pm
The Fox Says:

Thanks, Boca. I will probably cover today, but just wanted your thoughts.
July 2nd, 2008 at 12:36 pm