New Watchlist Setups for Wednesday 1/13
Posted by lasertrader on January 13, 2010
Edit: I got a call from someone this morning that reads this blog and the conversation upset me quite a bit. I started this blog to put actual trades I do out there and track them. They are real trades and I live with them. I didn’t realize that by doing this I would be subject to scrutiny and criticism from my friends. This blog journals a swing portfolio that I started for the new year. In addition I daytrade each day and do not wish to make this a daytrading blog so I dont put those trades in here. I have had a great week daytrading so far thus the BIDU thing does not affect me other than to take away from my daytrading profits. Each day brings new opportunity and we always need to look for the next trade. I have decided to take some time off from this blog and cool down. I wish you all the best and good trading.
“When you have the choice to be right or be kind, always choose being kind.”
-Dr. Wayne W. Dyer
I will not be adding any new setups to the watchlist for Wednesday and will leave the setups that exist alerted. Just when I was celebrating the profits on my BIDU short, Google came out with news after hours that they may pull out of the China market. This news sent BIDU rocketing up fueled by the many shorts that piled on the past few days as the chart broke down. If you are ever caught in a situation like this, it’s important not to over react. I am going to watch the open for clues as to how to manage this position and not get caught up with the rest of the panic shorts that are getting squeezed. Once those shorts are cleared out, will there be long fuel to push BIDU up? I doubt it. Will Google really be pulling out of China, one of the biggest markets in the world? I doubt it. But I am just going to use those thoughts in the back of my mind and let price tell me whats happening. The market doesn’t care what I think. As always its not the news but the reaction to the news that counts.
Keep an eye on this scenario as a learning experience because there is a high probability that you will be caught in one just like it in the future.
What I have done is initiate a small long position in GOOG. Its not often you get a chance to enter GOOG at or below the 50ma on the daily chart and right when its sitting on support.
I will update all the setups and holdings pages this evening. Have a profitable trading day!