This morning, the headline on http://www.marketwatch.com read, “Stock sales hint insiders are turning very bearish“. This afternoon, the headline read, “Stock-market indicators now warn of February pain“. Similar headlines are all over the market right now as fears and worries mount over everything from US debt to Italy. While the market may be nearing a top and may pull back 3-5% in the near future, I cannot make trades based on the fear in the market. It continues to seem as if the contrarian trade in the market is still bullish.
I added 2 more trades today with ECA and AAPL. ECA is a play on earnings to come next week. It is a relatively small risk with some nice reward potential. AAPL was planned to be a simple day trade. With the itunes data released, the stock has had some rather wild action and the option values are nearing my entry point from earlier this morning. I plan to hold AAPL overnight. Today’s technical candle is very indecisive and historically, the gap on the following day determines the next major move. If AAPL gaps lower in the morning, I will cut out and move on.
With my older trades in FCX and DDS, they keep plodding along. While it doesn’t seem like they are really moving the trades are up 40% and 60% respectively. They both continue to hold the 7 day moving average while setting new short term highs. If the market doesn’t tank on various worries, I expect FCX to test the $38 level and DDS to move into the low $90s.
Four trades is the most I’ve held since starting this 3K -100K challenge but the setups for each remain solid.