Monday, March 1, 2010

Bulls take over MA(50)

Finally. The day that was being set up the entire last week. A day where we finally went somewhere. A day when the bulls finally mustered the courage to take on MA(50). And then took it. Is the battle over? No! Not by a long shot. But today was a decisive day. Could it have been better. Definitely Yes! But nonetheless, today was an important day for the bulls. 

Let's have a look at the charts. The MA(50) should act as support now. Hopefully, the bulls will do a good job of protecting it. Nothing much to say about the charts. All the focus is and should be on the blue line - MA(50) and I don't want to take attention away from it by drawing other support and resistance lines.

On the negative side, the financials were disappointing. As I stated in the post yesterday, I expected financials to lead the way higher and I still expect that. It would be nice to see a better show by financials tomorrow.

I have been posting about the airlines stocks again and again in the past few weeks. In fact, I posted their charts in the watchlist just yesterday. Here is how they performed today:

UAUA: +5.13%
LCC: +4.91%
AMR: +2.39%
CAL: +2.61%

Not bad, even if I say so myself! I hope some of you readers were able to make some profits out of these calls.

Personally speaking, it was a day of missed opportunities for me. As the regular readers of this blog know, I went today long on margin. I was on margin for the first time this year and was amazed by how comfortable I felt. I remember last year, when I used to go on margin, I used to be so nervous and anxious. Why this change? I think I know the exact reason for this change but that's a subject best left for another blog post. Back to my trading day.
I had made up my mind to sell my weakest position before 10 AM before the numbers came out. And my weakest position on Friday was NR, so I decided to sell it at open. Seeing it gap up at the open, I sold it at 5.36 for a 3.7% gain. I know what you readers are thinking - not bad for a position I just opened on Friday, right? Well, let me complete my story dear readers. The stock went till 5.85 before closing at 5.69! But wait! Don't shed your tears for me just yet.....there is more to come.

Then, I sold 1/3rd of my WFMI holding at 35.99, right at the resistance. It closed at 36.50 odd. But no regrets about this one. Actually, this is how I would like to play each of my trades - taking partial profits and letting the rest run. But as you readers know, I trade with a small account and unless I take a large position like this one, this is not an option.

And then I took I got stopped out of my DLTR position for ~ 1.8% loss. Considering this was my smallest position, this was quite a small loss. 

Following this, I decided to sell my LCC position for ~ 4.2% profit. I did so because I wanted to take a position in CAL, same sector but a breakout candidate. I did so at 21.10. While LCC closed around 7.69, CAL closed at 21.20. No damage done but again, lot of money left at the table.

Lastly, I took a position in ATLS in the last few seconds of the day. We will see how this goes. Since I am tired right now and could do with a drink, I will end this post right here. Not a bad day overall but could have been much better. But I end the day the same way I started it - with no regrets.

Take care and good luck tomorrow!

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