I said this "flush out move" on this rally was going to come Friday afternoon into Monday morning.
It appears the move is going to happen Monday afternoon into Tuesday. It is good and healthy for the market to pull back as it cannot rise with everyone on board. Sentiment was extended to say the least. I made no trades today as I am in all of these things at much lower prices and I intend on just taking the hit of this pullback UNLESS it starts to look more much ominous. This is possible as many smart bears are "all in short" here but I am still giving it the benefit of the doubt.
Ok, so maybe I should have sold Citi with it up well over 100% in the last few days for me but cutting winners short is even worse than leaving some of the profit on the table in my opinion... as long as you don’t leave ALL the profit on the table!
I’m still waiting for an entry on UYG, I might not take that trade. Citi and HUM are on the chopping block and GE is pretty close to a sale for me now as well. I will let the market tell me when/if to sell these.
MFN (Minefinders) is going to get called away from me this week as I sold upside calls against it for March and it just keeps going up 14% every single day (today included). I am going to let them take it off my hands instead of closing the calls, its more than doubled recently as well.
Letting them take all those shares from me will be like losing an old friend, but if you are going to close a winning trade selling upside calls is a good way to do it because at least you lock in even more profit than the current price.
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Just so I'm not a weak long, I set my stop on SSO down to 16.97.
ReplyDeleteWas that it? That seems pretty lame!
ReplyDeleteDid you notice the low on SSO?
ReplyDeleteIt might have been lame, but your stop on SSO was $17.80
The low was $17.80.
Had you not moved your stop up you would have been stopped out of your SSO yet again.
Lets see how the rest of the day goes.