ST trading:
I've decided that, for now, I'm only going to play the upside. Sentiment on the techs is so horrible, we've got to have a bounce soon. Stocks like NTAP and CSCO and EMC and LU and JDSU, never mind the second or third-tier companies, are going down so fast that if their current trends continue, they are going to hit zero soon. So that trend can't continue. There has got to be a snapback, to recover a large fraction of the recent losses. Yeah, it's probably just a bear rally, but the SOX could go up 50% off recent lows, over 3-4 weeks, and I don't want to short into that.
Plus, there are getting to be some stocks that, if I go long and my trade doesn't work, I wouldn't mind holding them at these prices.
And I'm not at all confident of the safety of stop-loss orders. Stocks seem to be making all their daily moves in the first and last hour of trading. Big gaps at the open, either up or down, are common. |
