For the next month or two I am going to try to post my top one or two ideas for the coming trading day/s with a chart explaining what I am seeing. This is really the only way I will be able to do justice to my picks and continue to update the positions. I haven't been posting picks because I knew I wouldn't have time to do the updates on the positions that I customarily do. So the pick for the day won't constitute my entire activity for the day but still provide opportunities for my followers to profit. As always your feedback is appreciated.
Here is the first:
Another idea I continue to watch entry for is FAZ. I continue to believe the overall market is set for a correction, but like I have said before, these bear market bounces can go on for much longer than you can comprehend, especially with so much money still on the sidelines with the decimation of the market over the last couple years. Therefore, it is important to play what is front in you. What the charts are telling you even though it can often defy logic. But with most of the earnings already out, the market extremely overbought in the short term, and seemingly little future news flow left to support the market higher, I think most traders are looking for a pullback. Bottom line numbers have improved in many of these names but top line numbers have failed to improve and should raise caution moving forward. FAX is extremely hard to trade, especially when trying to hold for a time period longer than a day or two. You can almost not get anything out of analyzing the individual chart's resistance and support levels. So instead I am keeping an eye on long term resistance levels in XLF at $13.08ish and SPY at $93.22 for a possible entry. I am going to keep position size small and look for a longer term move. I will be looking to buy June calls at these resistance levels as well.
JAX
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3 comments:
Sweet Stuff Mr JAx !
Had FIT on my radar, as well as the others I emailed you.
I would like to ask, about taking a position like in FIT, are you willing to buy, even near the open ?
Also, with a thin roll like me, you told me to wait for the perfect setup, and when you post one like FIT, its look like it part of it.
So the Q is : Would you take a different approach on this stock with a huge chuck of the roll ?
Or I just take the entry point and the stop-loss point, calculate my 1% losse rules and rest of the roll stay in cash ?
Thanks a lot
If I were you, yes I would be waiting for setups like that chart. But I wouldn't risk taking big size in that stock just because it is so thinly traded it is much harder to gauge your risk. If the market turns sour buyers could very well dry up and bigger buy/ask gaps show up in thinly traded stocks like FIT. So yes, I think you have the right idea but I am never going to put too much capital at risk in thinly traded securities.
When you mean thinly, you mean, not a ton of share available ?
What do you think about buying it on a pull back like today ? (I think FIT had good earnings btw)
Also , if the stock wasnt thinly traded like this one, would you plan change ?
Would you be more prompted to put more capital and take wider losses if the trades doesnt go as expected ?
I have an other one on watch, for you info, its LIHR, could be good for you too :)
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