Thursday, June 4, 2009

Going higher? Futures point to a more upside

The market's ability to cut its losses in the final hour of trading and this morning's semi-positive jobs report point to a positive trading day. The markets are all still making higher highs and higher lows so until proven otherwise it looks like we are pushing forward. As long as people continue to anxiously wait for a pullback stocks could head higher.

Some stocks on my radar are: FCX (again the stock fell down yesterday would have been a great buy opportunity but may not continue the pullback)and possibly some bio-pharma and healthcare picks... Probably won't add any new positions today unless we have some sort of mild pullback that doesn't violate any supports.

5 comments:

  1. I am with you on this one. It was very impressive to see the market be weak all day and cut most of its losses in the final hour of trading. Buyers are getting antzy in their pantzy's. They don't want to miss the next move up.

    Keep an eye on the in play tech stocks as they held there own all day yesterday.

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  2. I'll watch those techs (i.e. AAPL, GOOG, PALM) that are riding along their upper BB but unfortunately can't participate as a function of risk management.

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  3. What is in your risk managment policy that does not allow you to trade the big tech names? I am just curious. You also mentioned in one of your previous comments that you bought a position for an account that you manage, I was wondering if you would like to elaberate? Do you trade full time? If not what else do you do?

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  4. I'm just not comfortable buying stocks without a clearly defined trend... Options are a completely different beast since there isn't a 1 to 1 correlation between the underlying stocks price and it's corresponding options price.

    Let's use Apple as an example. Now I would really love for the stock to pullback and possibly trade sideways showing support and resistance for me to buy the stock. However since the street believes that AAPL is going to 180 as a function of fundamentals I may just pick up a few longer term calls on a mild pullback and sell the calls at that level.

    I do not trade full-time. I have a full-time IT job that allows me to trade all day but confined to my office. I do make my own schedule and no one bothers me.

    Concerning the account I manage it's a close family member's... I should be adding another one soon. I went with IB because Jason referred me and I discovered their family & friends management setup which allows non-professional traders to manage multiple individual accounts.

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  5. Gotcha. I admit that these are pretty volatile. But I do think that they still have important levels.

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