BIG has hit the stop. This market pullback is nasty. BIG closed at $28.20
I was getting tired of waiting for BIG to make its move. So getting stopped out is not such a bad thing..
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BIG has hit the stop. This market pullback is nasty. BIG closed at $28.20
I was getting tired of waiting for BIG to make its move. So getting stopped out is not such a bad thing..
At lunch time the markets were in good shape. Even the financial sector was showing some signs of life!
The sectors doing poorly are housing, and Oil services/suppliers due to the drop in crude oil price today. Coal and Natural gas also down today.
Most of the other sectors are in the green at this time.
The big movers today in the Rebeltrader swing trades is WWAT, WDC, NHWK.
FEEC is pulling back on low volume so I have no worries about that. Does not need to jump up overnight (even though we would like all our plays to do that
I am patiently giving BIG some room to make a move. However if there is no significant movement by the middle of the week I will close the trade. Too many other moving stocks to play to just let this one sit and collect dust while it waits for the market to stop bouncing it around.
The Rebeltrader portfolio is making a nice gain today so far.
RebelTrader plays WWAT,WDC,BIG,NHWK, AKS all trading up. I expect to see GRP trading up soon.
WWAT already working on new highs again. NHWK running up quickly again this morning. Some good gains for the RebelTrader portfolio again.
A divergence is a powerful leading indication of what is to come. When you look at a stock chart and see the price dropping but technical indicators are going the other way that is a ‘divergence’. And it can signal a pending change in the works. Acme Packet (APKT) is one of those types of charts. APKT went public last year and like many IPO’s they sell off to the level that the ‘market’ thinks they are worth. And in many cases the sell off is over done and it results in a period of settlement. In the settlement period the sellers and buyers reach an agreement on what the price should be. On the APKT chart you will see 3 point where the price hit a point and each time buyers would not allow it to go any lower. This happened 3 times at the same price point. This is significant in itself. But more important is the divergence in the technical indicators. Examine the MACD, RSI, and the CMF. Notice how they have been trending upward while the price was working downward. What this shows is that the market is starting to change it’s mind on APKT (in the case of the CMF indicator, even before the bottom was reached). When ever you come to a chart where you see a divergence of price vs indicators take notice! Something is in the making.
A good day for the RebelTrader portfolio. This morning I entered a new swing trade on NightHawk Radiology (NHWK) at $19.40 (1/2 position to start with). NHWK continued upward throughout the day and closed the day up 7.4% ( up 3.9% from my entry point). I had NHWK on my watch list since Tuesday and today it performed very well and met my buy point. I will monitor NHWK for the next entry point for the remaining 1/2. With the big gain today I expect to see some pullback on profit taking but I don’t see that lasting too long before it continues up again.
Today I sold NetGear (NTGR) because I saw what was starting to look like it was topping out. That means that there just was not enough buyers left to out number the sellers and that we were going to end the day with a doji (doji: The name given to a chart pattern which signals indecision). With that trading pattern developing I decided to take the gains and close the trade. NTGR provided a 5.1% gain in 10 days. Remember that it is not important to squeeze every penny out of a trade, what is important is that you have more winners than you do losers. Don’t focus on how big the gain is, instead focus on keeping the losses small. The gains will add up.. Every gain is a winner!
Both posting additional gains for the Rebeltrader portfolio. BIG is trying to stay green. Not giving up on BIG just yet. GRP also posting more gains to the portfolio this morning.
Sub Prime made the headlines again after the market closed. It is being reported that a comment made by Bear Sterns is that two of their hedge funds with ties to the sub prime mortgage business are now essentially worthless. Reportedly now worth less than 10 cents on the dollar. I said last week that we have not heard the end of the sub prime woes and I’ll say it again here. The sub prime problem has yet to fully propagate into other areas/sectors. There will be more headlines concerning sub prime in the months to come.
I’m seeing what is looking like a bounce coming soon. So I’m still bullish on BIG as long as the sector is still bullish which it is, just in a pullback currently. The $RLX chart is telling me a rebound is near.
WDC for as long as I can squeeze a gain out of it. NetGear (NTGR)is also on a good run and will keep an eye on it so as to not let the gains slip away if the broad markets turn sour.
to happen.Most of my open swing trades have opened to the upside this morning. NTGR is performing very well.
BIG has been basing around the original buy point. This stock is not catching the retail wave yet. I’m sticking with it until I see a signal that says it is not going to make it.
ONT has pulled back to the support range. Each time ONT pulls back to around the $2.60 area then some big trades go through on an uptick. Other traders are seeing this $2.60 area as a key support as well. I’m holding onto ONT
WDC is catching the beginning of a tech rally (albeit still weak). My entry on WDC could not be more perfect to take advantage of a tech rally. If Intel reports good numbers when they release their quarterly numbers then expect to see WDC and NTGR to be lifted up as well.
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