There have been lots of caution signals of late, and the damage is building slowly but surely. Some of the best names out there are shaking out weak holders as viciously as possible
I bought VRA yesterday at the open. You're probably wondering why. I'm guessing the popular criticism goes something like this: it's so extended, how can you possibly buy anything with an RSI over 80.
Well, it's got a tight float with a lot of shorts in it and the chart is one of those setups where it starts to move then it accelerates faster and faster. At the same time, the stock had a high volume doji daily candle yesterday. My guess is bears will continue to have nothing here.
My basis is 28.23 and the stop is around the 200 MA on a 30 minute chart which equates to a 15 day MA, roughly 26.70.
I took a 2% loss on XON last week at 25.98. It's much higher now and actually is setting up.
I sold the rest of the MTW long from 22.40 at 29.93 and it already reversed back above my stop. Keeping too tight a stop on big winners appears to be a theme in my trading of late. That info (to me at least) is invaluable going forward.
I also sold the UVXY hedge for a 1% loss last week as the big Russian fear event was 'resolved' and the paralympic games were set to get started. They end Sunday and it wouldn't be surprising to see Putin stir up shit once again next week. I'll look back into this instrument as we head into the weekend.
NMRX sold off on earnings and breached my stop level. Frankly I've held it awhile and 8% is more than enough of a loss. There were signs that the most recent rally was bullshit and it was just getting dragged up by the market. Note RSI, MACD and volume were incredibly weak on the last push
Every dip in HZNP is bought aggressively. I re-added it at 13.13 last week. Earnings are out tomorrow. Who knows how it goes. It's trading like many previous leading drug stocks. This morning's low around 12.30 is shaping up to be a reasonable stop area on a potential earnings sell-off.
My stop in AWAY was this 44.50 area that was support 5 times or so, but it gapped below it this AM and by in no time it was sitting on the 50D. It's pretty stupid to sell right at the 50D so giving it some room down to 41 is the only choice.
IRBT is still rangebound. Maybe it's a head and shoulders? I'm not that worried about it.
FSPM trading near the highs. I'll hold it against 7.
VIMC what a winner. Print out the chart on this one. The setups and patterns were textbook. The long term picture here still screams much much higher. With only a partial position there is nothing to do here.
UPL still working on that long term resistance break. Notice it's not really selling off, but traded sideways. That's good as long as it holds up. The stop continues to be 23.
We've seen why it's so important to thoroughly review positions and actions; there are a lot of things to learn!!
Good Trading!
