Friday's action didn't really tell us much given the holiday induced lower trading volume. That said, there still were some trading opportunities that happened early in the trading day.
Last Friday I took a trade in PACB and had a 6% gain by midday, but for some inexplicable reason (stupidity and greed) opted to hold for further gains, and ended up selling it flat. With the market trying to regain its footing after a tough month of May, it's best to book gains quickly on those lower priced speculative stocks.
With the jobs report due out on Friday morning, my strategy will be to refrain from making sizable longer term commitments until those numbers are released. After last month's weaker than expected number, we're at an important juncture as to whether we'll see a bounce back in job creation, or another month of weakness that could signal further action by the Fed on a new round of QE.
This week I'll be looking to make some quick trades on bounce plays from oversold conditions, and go into Friday mostly in cash. The encouraging thing is that the presidential election year cycle points to strength after the summer doldrums, and some of the longer term charts are setting up in accumulation patterns.
The charts below are separated into 4 speculative, short term trades, and then a few more that have better fundamentals and are setting up in more sound, longer term bases.
As ALWAYS, use stop losses to limit potential losses. Click on charts to enlarge view.
Short term speculative plays:
Last Friday I took a trade in PACB and had a 6% gain by midday, but for some inexplicable reason (stupidity and greed) opted to hold for further gains, and ended up selling it flat. With the market trying to regain its footing after a tough month of May, it's best to book gains quickly on those lower priced speculative stocks.
With the jobs report due out on Friday morning, my strategy will be to refrain from making sizable longer term commitments until those numbers are released. After last month's weaker than expected number, we're at an important juncture as to whether we'll see a bounce back in job creation, or another month of weakness that could signal further action by the Fed on a new round of QE.
This week I'll be looking to make some quick trades on bounce plays from oversold conditions, and go into Friday mostly in cash. The encouraging thing is that the presidential election year cycle points to strength after the summer doldrums, and some of the longer term charts are setting up in accumulation patterns.
The charts below are separated into 4 speculative, short term trades, and then a few more that have better fundamentals and are setting up in more sound, longer term bases.
As ALWAYS, use stop losses to limit potential losses. Click on charts to enlarge view.
Short term speculative plays:
Longer term setups:
No comments:
Post a Comment