The market looks a bit weak the past few days despite the fact that the overall trend in the long term is still bullish. It's time to clean up the portfolio, manage some positions, lock in profit and cut off some losers. That's just what I did yesterday. LDK hit my stop order, and despite the fact that it looks like its starting to bottom out, it is a high risk play that I am not willing to take. As I am learning, sometimes it's a good move to just lock in profit and move on to something new in order to make your money work for you. Yesterday was not the best day for longs after some news and speculation came out regarding congress not extending the new home buyer bills along with the US dollar strengthening. As a result, the market pulled back and right now we are sitting just above the 20EMA on the daily chart. We definitely have the potential to fall down to about 1046 on the S&P Cash, so be careful with the longs.
Listening to the commentary from Day Trading Radio, I have to agree with the fact that the short term trend is bearish while the overall long term trend is bullish. I have to change my tune a bit personally and readjust being that I was 100% bullish as we saw the S&P hitting 1100. Unfortunately, that 1100 mark is a brick wall and we need this minor pullback to reset the market for the big move up. It may be a quick flush down to 1046 or it might take a few days or even weeks, but in the mean time I am looking for the market to pull back before I initiate any more longs. Along with that, I am sitting on my hands in order to prevent myself from building any snowballs. I have been learning a lot the past few days, and despite the fact I have taken some hits, I still remain profitable overall. My big thing is I need to lock in the profits quicker instead of looking for that homerun. Continuing with the baseball analogy, it's more important to be consistent and hit those singles and doubles in the long run rather than searching for that homerun all the time!
With that said, good luck in the market today! We will be opening up in the next 10 minutes or so!
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