As noted in yesterday’s video, I went into the week with my bear hat on. I don’t trust this market. Price action has been horrid of late. It’s not just the distribution days, but the nature of the subsequent consolidation. Every attempt at a bounce has been met by quick profit taking.
That’s why today’s opening strength was so appealing to me, both for profit taking and to initiate shorts. There was no underlying strength by way of volume and breadth, which lead me to believe their would be no upward momentum.
I sold my remaining 300 shares of MA at $187.55 (entry at $181.04) for a $1953 gain (+3.6%).
I exited my TOL short late in the day. On the 14th I went short 200 shares at $22.44 and 300 at $21.46 on the 13th. I covered today at $18.22 for a $1812 gain (+18.1%).
A bounce in the housing sector would likely to again short TOL or other builders. MA is setting up again for a bounce, as it closed around $181.
I bought 600 shares of QID at $40.26. In the video analysis, I stated I would enter in the $38-40 range, but today’s open was too good to pass up.
I went short 500 shares of NOV at $69.44. This is a classic reaction back up the breakout bar. The stock closed at $66.91 and my target is in the $63-64 range.
I went short 300 shares of AAPL at $176.08 later in the day. The stock had climbed above $176 early in the day, pulled back and mounted this level in the afternoon. I went short when the bulls failed to hold the high, on the break of the morning high. The small position size reflects the fact that this stock will likely enjoy a big bounce if the market stabilizes.