by SP Joe

This is a perfect day to point out why top calling is usually not a good idea, and why contratrading (against the trend) is difficult.  Stay with the trend and let it be your friend.  You will lose a lot more trying to short the market on the way up then you would if you went long and the market turned and you lost that day.  Look at the poor TVIX longs.

Seeing the market trying to gap up this morning is never fun when you realize you have no positions.  Gap ups are the hardest to trade.  All of your alerts go off in the morning, you scamble to find them and trade the, you realize they have moved above your buy in, you buy, and they fade.  Sounds about normal right? 

Even though you know it is coming you can still get suckered in to a couple of trades.  I got suckered into ENTG off the gap up and currently hold it overnight with it sitting at my buy-in.  This will be an easy decision in the morning - cut it!  It was low volume and it faded the gap up.

I did get into a couple of other positions I liked (at fair prices).  Took FSS of the breakout pullback.  Sitting with a nice profit on that one while I hold it overnight.  Will put the stop at break even and see if we can bounce it ---needs more volume!

Also took EGLE on a good range break - took profits on that one +5%.  Should have scaled and overnighted the last half but oh well.

What was I thinking on that one?!?!?!?!?

by SP Joe

So Thursday night I was hit with a fever running temps around 103.8 degrees, yikes!  I for one blame Ryan for sharing his sickness around the chat room.  The fever kept me from wanting to chart or move at all.  So sorry for not getting a Friday watchlist out like I wanted to.

I did get one trade on Friday on VELT.  Had that one on my watchlist for awhile.  It was one of my favorite setups on a pullback on the earnings breakout.  Got in at 12.71, out half at 13.05, and out last half at 13.25 for 3.46% gain.

Finished the week up 4% in the portfolio.

by SP Joe

Another sell off coming into today making that three days in a row.  It looks like we are still digesting the move we had last Tuesday.  A pull back taking us to the 20 day moving average (retesting the breakout area) is still in the cards for the bulls.  We could use a pull back to reset up the charts and push us higher.

Haven't done much trading that last couple of days due to prior obligations but I will be back in the full swing come tomorrow.  Did go ahead and dump AMRN on a failed break down.

Looking at the AMRN 5min chart (above) we can see the dips still being bought on support, and that is not a good sign if you are short.  Went ahead and covered that at entry price (11.93).

That stuff is boring boring boring compared to the action in TVIX today, yikes!!!  

WOW! What a move on that one.  Not to much to say on that one that hasn't already been said.  When something is holding up because it is trading a premium, you would have to expect that sooner or later that premium would come out.  If you don't understand the VIX, VIX futures, contango, NAV, or ETNs then I would pass on these volatility products.  

On a side note, TVIX is still trading several bucks over fair value...eek!