Summer Time Rolls
Well now. In most circles that are replete with neophytes of trading there is always this expectation that the summer time is the time that all the slack jaws in the market just loaf and wait for fall to roll around. For all my fans that are wondering; I am long and not doubting myself. Stops are in place and I give the overbought condition of the indices no thought. You may remember ABM from a few posts back. Yes I am long and pleased with the trade. when I last looked I was up about 10%. A rain maker? No. A good trade? yes! I also went long BTU about a month ago. I like coal for future upside... Why? Most of the electricity in the USA comes form coal fired power plants. If I am wrong; oh darn. I bought again on a later breakout; thus doubling in. I opt for a doubling method when I scale in to stock trades' unless I can't come up with the needed money. If any body has questions...Reply to this post and we can shoot the breeze. Good luck this week in the capital markets... Oh and one more thing. You are not smart enough to match brain pans with the market; so don't try. Just trade with confidence and let time tell the story! Your pal- DD
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6 comments:
Both ABM and BTU look like really nice trades. I agree with you on the overbought markets although I am taking a really cautious stance as I took a big draw down this time last year due to my own stupidity
I gotta agree. With so many stocks performing 5 yr trend breakouts, you have to think to yourself, "I might want to take a chance on that." Until my trendlines are broken, my rules say bull.
Right on! You cant fight the tape. I get a little tighter with stops on profitable trades, but You cant fight the tape.
I'm watching the financial sector to see what the shake out from the subprime fiasco will be. It, like the market, was hit back in February; however, it really hasn't made any new highs. I'm mainly looking at a few ETFs in that sector(KBE, RKH and XLF). Another reason I am watching these is Ben Bernanke's vote of confidence about their ability to self-regulate. I like XLF the most--it has had the best recovery and has had the highest returns. Let me know what you think.
Okay, so I had too much time on my hands and I was looking at your BTU trade. Good stuff. The Coal industry has been a high performer over the last five years, the last three years, the last 26 weeks, the last 18 weeks, the last 6 and the last week. BTU is the strongest company financially in that industry and over five years has outperformed all other stocks in the industry. I like your pick. Perhaps I will find something worthy of you. Are you watching the financial ETFs I mentioned? We'll see if anything comes of those.
Trading Smart Bomb 73, how do you allocate your investments.
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