” The benefits of staying nimble! ”
Intraday Investments Trading Summary for Wednesday, June 13, 2001
It was certainly crucial to stay nimble today, as the markets rallied in the morning and collapsed in the afternoon. Since we were prepared for both sides of the market on our Stalk Sheet, our trader-members were able to smoothly switch from being long to short the market. In the morning, we were primarily trading the Dow stocks, which were trending steadily while the Nasdaq thrashed and chopped. In particular, we traded the Banking sector long and the Drug sector short. As the rally topped out, we went to cash and warned that market internals were flashing a reversal signal. We urged everyone to stay flat to see if the rally would continue to deteriorate. Upon confirmation of an intraday trend reversal, we shorted key stocks in the Networking sector (one of the weakest), plus the QQQs, NVDA, and EBAY. The Networking sector really started to deteriorate after dropping below its support of 400, leaving the NWX looking like a horror show. In our opinion, between the NWX, SOX, and GSO, the Nasdaq took a more serious beating today than the COMPX closing figures would seem to indicate.
We made a total of 14 round-trip trades today with 11 winning trades and 3 losing trades. The sum of our intraday and overnight trades was a profit of just over 4.6 points. Here is a list of today’s trades: JPM long + 0.80 (two entries), CELG long + 0.61 (stopped out breakeven on half of position), CRA long + 0.52, MRK short + 0.24, JNPR short + 1.41 (three entries), NVDA short + 0.50 (stopped breakeven on half of position), ADBE short + 0.47, QQQ short + 0.60, FDRY long + 0.20, BRCD long – 0.30 (although some members sold into strength for ½ point profit), EBAY short – 0.36. We also sold our CRUS overnight play on the open for + 0.20 and got stopped out of INTU overnight play for – 0.25. We ended the day in cash, so we have no new overnight positions. Our only current position is our BKX June 920 short call (which we plan to let expire worthless in two days).
Although we had a rather profitable day from our intraday trades, we, unfortunately, got stopped out of two of our swing trades. We lost 1.5 points on ATVI swing short and 1.35 points on THQI swing short. The gaming sector will not give it up, so it makes no sense to continue fighting the trend. We can always re-enter these shorts at a better price after getting stopped out.
Even with getting stopped out of our two swing shorts, we still had a profitable day of almost two points. Consistent profits most days of the week and keeping losses small on the other days is the plan!
Deron, Steve, and Ed
General Partners
intradayinvestments.com |
