mysidetrades: Buy them when they Pull-back, ok we're getting it

Friday, October 12, 2007

Buy them when they Pull-back, ok we're getting it

After a huge rally in the market we saw a reversal (at least for a day), maybe it continues for a few days and with Oct. option expiring next Friday, there will be a volatile week ahead of us, remember we are just seeing the other side of the momentum plays (the down-hill) so What are some good names to buy. I would look into the top performer in the NASDAQ and Some names in Financial sector to Buy (Investment bankers not money centers like Citi):
I would be buying:
[RIMM ~96] [ AMZN ~82] [ AAPL ~145] [ GOOG ~590 ] [ BCSI ~39 ] [ GS ~205]
[MA ~150] ("You gotta charge it", No matter where you shop, either at store or on the internet, MasterCrad seems to profit either way) I am biased toward more drop before getting encourage to buy. In the OIL sector I really like XTO its at $65 now, if it gets to 60-62 range, I will be a buyer.

On the SHORT side either shorting the markets (Buying Ultra Short Dow 30 DOG or Nasdaq Ultra Short QQQ QID)
Or pick a momentum stock like BIDU , buy puts and sell the puts on Monday for a quick cash. I also look into the stocks with disappoint earnings or negative outlook, they will be punished more heavily in the volatile market. Two specific names:
ATI ( 106.65 went down 10.3% after the market close) and FAST (44.75 down 5.04 with 4 times average volume).

1 comment:

Unknown said...: on the short side , why don't u look at DXD , same a DOG but with double (2x) the gain; October 15, 2007 at 1:55 PM

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My trading rules:

Here are a few trading rules that I found working for me over the past 15 years.
A. Try to follow the steps of the elephants (i.e. big mutual funds and institutions).
B. Its not my goal to predict the bottom for a falling stock or hoping to sell at the top.
C. I will be happy to pick the right stock, make a trade in the right direction, and take profit.
D. Always look for shorting opportunities in the market. Fear is a powerful emotion which can drive the stock price to lower levels.
E. Do not see how one can survive without buying puts to protect against bad market. (well If you have short positions a falling market is a good market).
F. Try to allocate not more than 20% of my trading budget for each trade. Always have 15-20% cash and survive my bad decisions and losing trades.
G. Not in love with particular stock or industry group.
H. Always on the hunt for opportunities in the entire equity market.
I. Step away from battle field. Avoid trading one week before and after earning announcement. Digest earning calls and company announcement before getting into it. When you gamble , the house always wins and you lose.
J. Rapid fire moment, does not lend itself to smart thinking.
K. Pressure is mother-of-all bad decisions, don't pressure yourself.
L. Never kick yourself for taking profit.
M. A money management tip: You get out, when getting is good, before you blow yourself up.
N. Its Ok to take a pass on a trade, listen to your inner Clint Eastwood, "Man got to know his limitations."
O. Assess your down-side before entering a trade, not your upside.
P. Always have 10% of your portfolio in cash, and consider yourself fully vested, if you are below 10%. Need to sell some positions to raise cash.
Q. Have a list of good stocks to buy from, look for pullback and be patient. Not having a list to pick from, is a good indication that you have not done your homework.
R. Refrain from trading on a volatile day, let the dust settle, and let the amateurs play. Enter a position when more odds in your favor. Playing earnings is a dangerous way to gamble.

mysidetrades

Friday, October 12, 2007

Buy them when they Pull-back, ok we're getting it

1 comment:

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