Thursday, July 22, 2010

Market musings for today

Today was a pretty good day. BVF moved slightly higher, EMS got hit hard again, and UL was going higher.

I missed the AGU setup the other day because I am still trying to perfect my options postition sizing model to avoid getting stopped out prior to a bonified stop on the underlying.

I had a pie in the sky price set to buy the options at...and it was clear to me that I was going to miss that opportunity.

I realized why my sister's IRA didn't get stopped out of UL the other day. I set the triggers wrong...I had set them to go off if the ASK had reaced $6.10 instead of the bid...I'm only human and prone to errors.

Now I am at a point where I could/should be taking profits here...but I also have nothing in the charts telling me to exit any of my positions...I just don't want to see my profits evaporate.

Today was a heckuva day in the market with all things flashing bulls in charge (minus volume of course...but its summer and that doesn't worry me).

90% up day so there was certainly doesn't much matter why it happened and I don't put much stock in the reported reasons markets rally...the press is very unreliable.

I gotta say, if IBD says a rally is happening, I am prone to follow that call. They have a fairly straight forward simple system for assessing these things and they are very quick to turn their calls around should the market determine it is right to so.

Anyway, the market is tough these days and tomorrow could bring another big red candle...the stress tests are coming out and it might spark a going to the weekend...etc.

My setups have been doing well so I am happy. Now comes my weakest thing...exiting...and I am refining that as I go along but at least I am no longer bad about entering.

Without entering you have nothing to exit here's hoping that MACD divergence indicator and some of the turtle ideas work out for exiting.

Better still, let's keep making higher highs on the longs and lower lows on the shorts.

Thanks Mr. Market.

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