Today’s Trading Update – Friday, May 25, 2001
Today we came in long from Thursday with MSFT (Microsoft), and short CHIR & JBL. The market sold off a bit out of the gate, so we quickly exited MSFT taking a ½ point loss to start the day as Microsoft fell another point, while trailing our stop down on CHIR as it sold off for an hour. We also came in long some June Dow (DJX) puts which we unloaded into the selloff for a point of profit. The Nasdaq pulled in to the lower channel of it’s uptrend in the 5min timeframe. We illustrated the channel situation to Intraday clients in real-time with an annotated graphic (posted online) as a logical place to cover shorts.
We covered our Krispy Crème short calls into the weakness taking a +1.3 point profit, simultaneously taking a small loss on a few KKD puts purchased a few days ago for a net gain on the play. We shorted some irrational exuberance in TIVO (patent news) for a half-point scalping with size, and entered DIGL short but stopped it out for a scratch. We lost $0.33 on an NSM long, $0.95 NTAP, 0.50 in TXN, and $0.26 in PMCS, and made $0.30 in RFMD. We closed out the CORR swing trade with a 1.8 pt profit. We closed out the JBL overnight short with a $0.35 loss.
The semis rallied early in the day, reversed to sell off hard, then reversed up. We caught the reversal up and scalped the long side mostly in the semi's taking profits in pieces on BRCM, NTAP, OPWV, ONIS, VTSS, XLNX. We sold half the positions into strength but were stopped out for some losses on the remaining half when the Nasdaq broke the low of it's uptrend line in the 5min channel. After successfully executing a JNPR scalp short, we decided to reshort the next rally and take it short over the weekend based upon the weakness in the networking sector which continued throughout the session, and JNPR’s precarious position near the lows of a support band. The JNPR short was our only position on going into the close.
All in all we churned it a bit today, which wasn't our intention but the lack of volume in the markets made it hard to get follow-through. We did walk away with a couple of points onto the board net. We had to work hard for it, but more importantly the 2 points were made without taking excessive risk and with tight loss controls on every position.
A happy and relaxing Memorial Day weekend to everyone from the Intraday Investments team, and don’t forget the markets will be closed on Monday!
Steve, Deron, and Ed
General Partners
Intraday Investments
intradayinvestments.com
correction to yesterday’s Trading Update – should have been titled, Today’s Trading Update - “Thursday, May 24, 2001” |
