subject: Stock Investing Pt2 [print this page] Daily Stock Report for Tuesday Morning, December 22, 2009 pt2
Summary Opinion The next couple of weeks are vulnerable to a lot of cross currents with fund managers re-arranging their holdings. Consider reducing long holdings for lower risk and look for substantial exposure to long positions in January. This is not a great time to be heavily long but favors short term positions in swing positions. Also be very selective on what you are shorting.
Calendar Tuesday, 830am ET, Gross Domestic Product, 2.8%Tuesday, 1000am ET, Existing Home Sales, 6.25MWednesday, 830am, Personal Income, Spending, Consumption, Mortgage applications, Wednesday, 1000am, ET, New Home Sales, 430kWednesday, 955am ET, Crude Oil Inventories Wednesday, 215pm ET, FOMC Interest Rate Decision Thursday, 830am ET, Initial Jobless Claims, 470KThursday, 830am ET, Continuing Claims, 5.175KThursday, 830am ET, Durable Goods Orders, 0.5%Friday, Christmas Day, Markets closed.
Follow-up: HPJ, see notes below. PEP, Pepsi. Pepsi bounced today sharply from Fridays low, and looks likely to move up for another day or two. This is the downside of using stops but by keeping discipline to use trailing stop losses, it will keep you from having really large losses on any individual stock idea.
Focus chart:
HPJ, Hong Kong Highpower bullshort acted as we hoped and peaked out below $9.04 at $8.90 and corrected to $7.55 on Monday. This rebounded back from $7.55 and went back up to $8.70 in which we promptly emailed you this to consider opening a small short position. We are looking for this to drift lower into the low $6s in the coming week or two and possibly breaking below $6 eventually.
REPEAT from Sunday night report: Most of these bullshorts dont exceed the first high so if this moves up tomorrow (on Monday) and doesnt exceed that $9.04 high from last week, this should be another good opportunity to open a small short position to profit from as it likely moves down to a lower low, possibly to $6 or lower in the coming 1-2 weeks.
The first drop like we have seen in the last 3 days is the fastest and easiest money to make in a bullshort but the most is made by repeated shorting, usually in two major drops.
Mitch King is the founder of TradeStocksAmerica.com. All material presented herein is believed to be reliable but we cannot attest to its accuracy. All material represents the opinions of Mitch King. Investment recommendations may change without notice and readers are urged to check with their investment counselors before making any investment decisions. Opinions expressed in these reports may change without prior notice. Mitch King and/or the staff at TradeStocksAmerica.com may or may not have investments in any stocks cited above before or after this newsletter is prepared. Use the stock table above as a model portfolio of ideas that look attractive at the time of the writing. Comments can be hypothetical in nature. Opinions expressed in these reports may change without prior notice. Disclaimer - Stock investing or stock trading has large potential rewards, but also large potential risk. There is risk of loss as well as the opportunity for gain when buying or selling stocks, bonds, option contracts or engaging in any strategy listed in the Daily Stock Report, The Wizard Training Course, The Trading Room and our seminar or workshops. You must be aware of the risks and be willing to accept the risks when investing or trading in any financial markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell stocks. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
by: Mitch King
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