Posted by 8 June 2006

This is What I’m Talking About

It’s starting to feel “whooshy” out there. The S&P and Nasdaq have dived under their lower Bollinger Bands, the Dow is under its 200-day moving average, trading curbs are in at the NYSE, the bears are partying and I think volume is running at a pretty high clip. I just picked up some QQQQ at 37.54 (down 92 cents from the close) with a 92 cent stop. I would have rather waited until after 2 PM to nibble but I’m happy with my entry. If they sell em down another 2+ percent then “oh well”.

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Comments

  1. Posted by Duru on June 8, 2006 at 12:19 pm

    Thanks for the real-time update!

  2. Posted by Duru on June 8, 2006 at 12:26 pm

    I should have added that with long-term interest rates dropping along with the market, we have more conundrums in place given the alleged inflation fears….or, we really have fears of recession driving everything down, down, down….

  3. Posted by Michael on June 8, 2006 at 12:36 pm

    As Livermore said — sell em all! :-)

  4. Posted by Duru on June 8, 2006 at 1:59 pm

    Sell ‘em all after a bounce anyway… ;)
    Man, negativity sure is thick.

  5. Posted by istockanalyst.com on June 8, 2006 at 2:57 pm

    It looks like indexes are recovering. The volume is very high for all stocks in my portfolio. I am mostly sitting on cash but the ones in my portfolio are all down :(

    Has anyone looked at GRMN? Relatively it is not doing badly as compare to overall market and of course, I am invested in it.

  6. Posted by Dan on June 8, 2006 at 4:06 pm

    just learning this stuff, but assuming you sold now, you would take with you 1R?

  7. Posted by Michael on June 8, 2006 at 4:17 pm

    Right you are. I sold for an 88 cent gain and my risk was 92 cents, so that trade was just under 1R

  8. Posted by Glenn on June 8, 2006 at 4:27 pm

    Nice one Mike, do you trade king size shares like Charles? Where you waiting for the right moment for this trade for a while or did it just work out?

  9. Posted by Michael on June 8, 2006 at 4:42 pm

    Glenn,

    No, I trade baby prince-sized shares. I guess it just worked out. I talked about this retest of the lows over a week ago but it’s not like I’ve been doing nothing in the interim.

  10. Posted by paul on June 8, 2006 at 6:30 pm

    Thanks for the real time update on the Q’s