Quick Trade Update

I took small long positions in CF (92.05), AAPL (179.80), FSLR ($235.25) and RIG (132). The first three were so oversold that I decided to buy after they started to bounce off their lows. If we get the holiday bounce everybody is waiting for, these stocks should do quite well.

I used strength to short dryshippers DRYS ($77.13) and EXM (33.75). Both still could move a little higher (in fact, both closed above my short entry), however, the bounce was too good to pass up. They have very “toppy” looking formations.

I can see DRYS testing the 200 day moving average at 60. I am using a loose stop (83). If it breaks above 83, we may see a run to the 50 day moving average at $100 before resuming the downtrend. I don’t mind taking the risk of loss considering the possible gain. If I get stopped out at $83, you can bet I’ll try again at $100.

I took profits in shorts QID and AKAM.

5 thoughts on “Quick Trade Update

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  1. Market SpeculatorDo you think the we formed a bottom today 12/19/07? Can I go aggressively long? Or you think it will be sell on strength?What price did you short DRYS? When will you cover? Has AAPL and BIDU put in a bottom? Where would you buy them? Any opinions on AGU or FWLT?

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  2. DRYS just got a big vote of confidence from Jefferies saying the shares are “extremely oversold” and slapped a $160 target on it. With short covering action this might rocket.

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  3. Dr. Nova,I am not going to predict a bottom. If there was a big edge in picking a bottom right now, I wouldn’t have any shorts. I’m leaning 60/40 that we see more downside in the coming months. However, I do think we could see a short term bounce, which is why I went long AAPL, RIG and CF yesterday.

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