It might come across as a surprise, but I actually have to long positions in my portfolio right now, and no, they are not an ETF ultra-short! They are legitimate longs.
This morning, I got into PetMed Express (PETS) at 16.43 and Quicksilver Resources (KWK) at 13.49. Both offer solid risk-reward setups. Whether they become profitable or not, will be determined by the market and its daily machinations. I got to admit that it is hard taking on a bullish perspective in stocks right now, as there is no doubt that the market is way over bought, and that it is ripe for a pullback. However, I sought advice, from one of my favorite books of all time, Trading In The Zone” by Mark Douglas, and had to remind myself, that trading is not profiting from what I “expect”, rather it is based on what the market is offering. And quite honestly, the market is showing little desire to breakdown and go the other direction. Eventually it will, but what the market is showing us now, is not right now, and as a swing-trader, I have to trade in the “now-moment” and not what I think or perceive should be happening.
With that said, here are the latest editions to the portfolio…
Got in at 13.49 with a stop-loss at 12.62. Also notice how the trendline since early April remains in tact.
Of the two trades, this stock probably offers the best “edge” per se. Well defined Cup & Handle pattern, that has confirmed, and is showing strength at holding the neckline. Also, there remaining on the chart is a nice gap that needs to be filled. In the short term, it needs to reclaim that 50-day moving average floating overhead. Stop-loss on PETS is 15.94 – its tight, but that’s the way I like it.