Congrats to the Packers. The Super Fun is over, and while Glee is owning the all the attention of my oldest child, I am writing out my weekly gameplan.
This week I plan on having a more two sided book. That means I will add to my daily trading long names that look strong, short names that look weak. I am willing to get into size on the daytrade long until that trade doesn’t work. I will short, but will take profits more quickly, until this market shows me a real pullback or correction is underway.
If the market continues to rally at the end of every day, with the S&P’s making new highs from 3pm on, I will go long futures. I will do all these things until the market shows me a different face. Right now its showing me only one face. People are buying beaten down stocks. Weak stocks early get bought up before the close. If a stock was strong early, barely exhibiting a pullback, buy it because it will continue to make new highs into the close. This is whats been happening, and I trade what I see, not what I want to see. If i see a reversal off these trends I will reassess.
I am down money this month on a trade error, and convinced myself that it was ok to be short those 25 stocks I accidentaly put into my account because eventually we will have a pullback. Unfortunately, thats not my style of trading. I hate being the first to the party. I missed all the fun of the relentless drive higher, which I usually take advantage of. And all for the wrong reason. Sometimes it takes a few days to recognize what it is that brings you, as a trader, out of your rythm. I recognized it, and on Friday adjusted my position. I added some pair names, so that I would have names reday on both side of the market ready to bring in the P&L.
A new week, and I’m excited about all the different ways to make money. I am preapred to take whatever the market gives me. And make sure its all done with appropriate risk controls including apropriate position sizing, not fighting the tape, and a balanced portfolio with hedge.
Now that the Super Bowl is over, its Game on to trading. Bring on the Hedge fund LIVE chearleaders, ready the cameras, light the lights, and get ready for the closeups. Who knows, Maybe the Black Eyed Peas will show up.
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