Stock Blog

I'm keeping my stops close here, as the market continues to move higher on lower volume. Its almost like there is an invisible hand keeping the markets up....

However, the trend is up, and so, I added 3 new positions yeterday, with trailing stops set at 2x ATR.

This sideways action always hurts trend followers like myself. Although 5 of my last 7 picks are up 20%+, its tough to decide to get completely out, or wait it out. While I believe we are heading to 1250 on the SPY, we should be pulling back a bit before that happens...

Should... which is why I'll continue to follow the trend, but wont be adding new positions until this sideways action ends.

When I got back into trading my covestor portfolio on Feb 24, I was trailing the S&P 500 on a 1 month basis by 16%. Today, its only 4%.  Following the trend of the market and you'll do fine with the right stocks.

I like stocks that are hitting new highs.  As a trend follower, its important to keep up with the trends of the market and take profits whenthe market starts to turn.

That said, I was over 30% in 3 of my positions, and took profits off the table today as I believe we are heading... [Read More]

Its amazing how many traders avoid stocks hitting new highs.

I added a position in MERC this morning, and and itching to jump into GRC (looking for an entry price above $10.47).

In my view, new highs suggest momentum - the trend is your friend.

I dont predict the market, I just follow it. Right now, my work suggests for the next little bit, taking bullish positions is the way to go.

Its a choppy market to say the least, so I am prepared to go short if the direction of the market goes there.

I like stocks that have growth on their side.

• EONC
• MNDO
• PSID
• GNV
• TOPS

I'll be adding these tomorrow at the open.

If you look at my profile since May, you can see I was doing great, then my average dropped significantly. Well, that happens when you walk away from the markets.

I took some time off to reconsider many of the strategies I was using last year. Although many of them were in fact successful, I knew I could do better.

I spent time developing my own market timer, and worked on position sizing, something I had challenges with last year.

My goal is to beat the SPY with low drawdown (under 20%)

Looks like today will be the first down week out of the last 9 - about time!

When I started going short 2 weeks ago, what I should have done is remained in cash until the market confirmed it was moving lower. Nothing wrong with leaving the party early.

The challenge too is that ETF, especially the 3x ETFs that I enjoy, hurt more on the way down than one would think.

I'll be looking at staying in cash if SPY moves above $90, but looking to enjoy a nice return if it moves below $88.10

Quit anticipating the end of the trend.

When it ends, and a new one begins, then buy. This morning I picked up a few cheaper priced stocks... will hold until the trend ends...

or at least a break is coming... suspect options will play havoc with the markets until the government comes up with some plan that the markets love.

Starting to ease up on my positions, taking some profits off the table. I'm expecting  pullback, maybe SPY 78.00 and then a push to 87 or even 90.

We'll see shortly....

Chris

Didnt like the way the market took some profits. Waiting for a pullback... or at the very least, some consolidation.

Dow couldnt hold 8000 - so i expect some profit taking... then a push. I still see SPY 87 in the cards...