Buzz of the Street: More Stimulus On the Way?
Some of this week's most insightful and timely vibes.
All day and every day, some of the stock market's best and brightest traders and money managers share their ideas, insights and analysis in real-time on Minyanville's Buzz & Banter. Check out some of the best of the buzz and for those minyans not currently subscribed, click here for a free two-week trial.
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Monday, September 28, 2009
By Smita Sadana
Research in Motion (RIMM) is close to its lateral trendline with the 200-day simple MA support as the final support. I would be looking for some stability and attempts at a bounce as RIMM approaches these levels.
But like any gravely injured person often needs time to heal, I suspect any bounce could stall, as trapped and fervently praying longs trim their positions in RIMM.
After all, the intensity of selling was so strong that RIMM could not muster any bounce on Friday and closed at the low end of the range of 17% decline. That to me shows that sellers were intent on selling, despite the spectacular drop and despite the fact that market participants are looking for any 'cheap' stocks to add to their portfolios.
Click to enlarge
Tuesday, September 29, 2009
By Branden Rife
Nice intraday head & shoulders setting up on spot S&P with yesterday & today's action (check out 5 min chart). Under 1059 completes it...while over 1066 rejects it.
Minyan Mailbag: Trading Strategy
By Todd Harrison
Let me first say that I look forward to your weekly Memoirs on par with new episodes of Entourage!
I was wondering if you could offer some guidance regarding your trading strategy? I am aware your philosophy is based on four constructs but more specifically to your positions and "trading around" these positions. It appears you buy time and in the money, and hold tight stops, but also appears that some are naked option positions.
How do you reposition if a trade moves against you on overnight gaps? If you are firm in your direction, do you exit the current option to buy back in the money options, buy more time, scale back or exit an wait for a re-entry? Perhaps you hedge on overnight holdings? I know all positions are situational but I am finding some difficulty on the best move after taking a hit on overnight gaps. Perhaps you could provide an example?
Thanks for all the insight on the 'Ville.
Minyan Stu via Ameritrade
Thanks for the kind words. There's no blanket strategy but what I will say is that historically, when I attempt to rationalize risk, bad trades turn into investments and I tend to bleed money. Overnight gaps are the 'other side' of "defined risk through setting stops" but nothing works all the time for if it did, everyone would trade that way!
Not sure if this helps answer your question but quite hopefully, sharing my missteps (learned through the years) will help you avoid them altogether.
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