“We were ready and waiting!”
Intraday Investments Trading Summary for Tuesday, July 31, 2001
Although the major indices rallied in the morning, we did not aggressive on the long side due to our concern that the Nasdaq was rallying into the upper channel resistance of the downtrend line on the daily chart. As such, we knew that it would likely be difficult for the Nasdaq to easily rally much higher in the afternoon session. So, instead of going long, we chose to be slightly short and mostly in cash during the morning and early afternoon session. However, after the Nasdaq formed an intraday double top around 1:50 pm EDT, we got more aggressive on the short side, which resulted in a rather profitable late afternoon session.
Here is a summary of our round-trip intraday trades: LLTC short + 1.35 (covered half position—took remaining half overnight), VRTS short + 0.71 (covered half position—took remaining half overnight), VRSN short + 0.75 (covered half position—took remaining half overnight), NVDA short + 0.71, DELL long + 0.10, LRCX short (0.15) (net loss from two separate trades; also took half position overnight), EMC long (0.20), and CHKP short (0.40). We also closed the following swing/overnight positions today: KKD short + 7.25 (The donuts really got glazed today! We only covered half of the position and are still short the other half), ERTS short + 1.43, VRSN short + 0.69, AFL short (scratch), QQQ short (0.67), and SYMC short (0.20)(half lot).
We took the following positions overnight tonight: LLTC short (half position, 1.82 points unrealized gain), LRCX short (half position, 82 cents unrealized gain), MXIM short (70 cents unrealized gain), VRTS short (half position, 49 cents unrealized gain), IDTI short (38 cents unrealized gain), and VRSN short (half position, 90 cents unrealized gain). We are still carrying the following swing trades: KKD short (half lot after covering half today), JWN Aug. 20 calls short, and TARO Aug. 45 calls short (got whacked nicely today).
Overall, we were quite pleased with our results today. We netted just over 11 points of realized gains (thanks in large part to our friend Krispy Kreme). We also are sitting on nearly 5 points of unrealized gains on the positions we took overnight into tomorrow, so we are well positioned for any potential follow-through to the downside.
Although today was definitely the most profitable day we have had in a while, most of our profits did not occur until the final hour of trading. This serves as a reminder to stay positive and focused each day because the day is not over until the markets close at 4:00 pm each day!
Trade Well!
Deron, Steve, and Ed
General Partners
intradayinvestments.com
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