Review of current holdings: (thoughts, targets and stops)
BSML short
very poor fundamentals
target 6s
no stop
will add 12.75
longer term position
some recent insider buying is causing me some concerns (only reason I havent added yet)
CWON - short
longer term short, might be a zero, will take mid 3s.
will add 8.50-9.00
no stop
DLIA short
another pos
Target is on core position $4.00
will add at around 6.65-6.95
no stops here
medium term position
IDN short
what a pos this is!!!!!!!!!!!
target mid 6s
Next add at 13.00
long term if needed here
no stops
This is one tough stock to break, I hate trading AMEX stocks.
But just like every other pos, eventually the axe will fall.
RSTO short
poor fundamentals (I think this retailer is doomed to fail)
time for a major retrace
target 4.00
no stop
will add near 8.00
ALOY short
poor fundamentals and ugly business plan (dependancy on teenagers is very unpredictable, but expectation levels are very high)
Longer term position
Target 8-9
no stop loss here, but will watch carefully (could be trying to breakout)
WEBX short
another fundamentally poor story
longer term position
target 15-16 on core position, on trading shares 22.00
next add 29.50
to stops for now
CORV long
medium term position
I feel there is some value here, but a terrible sector.
no stop here.
will do something a bit different here:
will add 1/4 position every 1/2 point down and sell 1/4 position every 1/2 point up
want to try something a tad different here and see how it works out, so far so good.
target 5.00 on any optical bounce
CKCM long
fundamentally questionable
stop at 7.75
target 10s (1-2 weeks)
LWIN short
terrible fundamentals, could very easily be a GTZ
long term play
target below 5.00
no stops here
will add at 35.00
HLEX short
looking for a retrace of end of quarter gains
fundamentally seems poor
target high 7s
no stop for now
short term trade, but could change to medium, smells like pos
Will add small at 11.00 to 11.50 range
ILMN short
fundamentals are terrible, dna research company
target very low 10s
will add around 14.50 to 15.00
no stop for now
short term to medium
EMEX short
what a joke this company is.
this is a very long term position with target of ZERO
will add 1/4 position every 40% intervals
no stops
WCOM long
basically a hedge against some of my longs
value oriented play
target 17s
for now no stops
ERICY long
tough sector here
looking for a very short term bounce to low 5s
I would actually add to this position at 4 or below (btw this would be very unusual for me, as I never add to losing longs)
I think this is a reasonable play to hedge some shorts
PCLN long
the internuts are back, been very strong for a month now.
looking for a move to mid 10s to 11.00 level
nice trading range lately (low 7s to mid 8s)
stop 6.95
Medium term position
WEBM short
even now a giant bloated pig
Looking for mid 17s to cover
will add mid 22s
Stop at 23.15
ROOM short
very rich valuation
looking for a quick retrace back to 46s
stop 55.25
add 54.00
STEM short
an old friend, what a pos
looking for mid 4s
Will add 1/4 position at 5.95 and next add at near 7.00
NETA short
fundamentals are poor
remember ISSX only a few weeks ago, now RSAS similar field.
Chart looks really ugly.
Earnings July 19
no stop
add 13.00
Target 8s
AEOS short
very rich valuation for a retailer
target low 37s
add at 42.90
no stop for now
EXLT long
1-2 day earnings play, triple position
fundamental very questionable, earnings report was good
targets 17.25, 17.75, 18.25 full position each
stop at 16.10
MONE short
an old friend very richly valued
target mid 17s
add at 23.00
no stop for now
SMTF short
very rich valuation and giant run.
target is 36
stop 41.50
SONS short
PE over 100
target 21.50 to 22.00
stop 25.15
UTSI short
earnings play, report was solid surprisingly
will cover before 11am
I am about 63% to 37% right now to the short side and 104% invested of cash (not margin).
Many of my shorts are not market dependant.
Word of caution for all shorts:
It is very possible that we could see a repeat of April's earnings season.
Tons of companies have warned and have low balled their estimates.
Now in their earnings reports, these same companies might be beating the numbers by 1-2 cents and moving higher.
Make sure you are well prepared for such a scenario.
If this does happen, the media will be very fast to jump all over this and call it a summer rally.
Patience is crucial now, do not force any trades.
Make sure you allocate well on your shorts.
If you are adding to existing short positions, please use larger % intervals (25% or higher)
Show lots of patience on potential new positions.
Nasdaq has had lots of trouble between 2250-2300 level, nice resistance there.
A breakout of this level could take the NAZ to the 2500-2600 level.
Next big level of NAZ support is 1940-1960 (2000 is more of a mental support)
Watch for July 17 as possibly a big reversal day.
Summer rally ran out of steam around this date 3 straight years.
Buy the Champs and Short the Chumps
traderpulse.com;
Michail |
