Another day, another impressive performance by the bulls. In the morning, the futures were down 60 odd points and it made sense. Wall Street doesn't like new taxes, right?? Well, live and learn! The market pretty much started at its lows and it was all bulls from there onwards. The volatility is still such that unless you are in the right stock, you might as well buy tickets and go and see paint dry - it's more fun!
I had a busy day as I had time to follow the markets today, and for the first time in around a couple of weeks, felt comfortable with my trading and in tune with the markets. A smarter trader would have waited for a day like this and not traded in between, but I have no qualms in admitting and as you readers already know, I am a work in progress. I had moved my stop in MGM to 50 MA and it bounced right from there. I kept on moving my stop along as it moved up and finally got stopped out at 12.10 for around a 3% loss. It finished the day at 12.50 odd. Was my stop too tight? Yes! After being down a decent bit on this one (it bounced from 11.38), I admit I was pleased with whatever I got and felt lucky to get away with a smaller loss. Yes, if you stupidly ignore your stops, you are left at the mercy of luck.
I saw it acting strong after I sold it, in fact all the casino stocks were doing well - MGM, LVS and WYNN. So, I took a position in WYNN at 34.50 and added to the position at 35.90. It had a pretty nice close. I posted on twitter about these positions as I did have the time to do so today and I hope some of you readers following me there were able to take advantage of these stocks too. Why did I go for WYNN, and not MGM again? Well, I know myself and losing twice on the same stock in the same day wouldn't have been good for my confidence. In an ideal world, these things shouldn't matter but like I said before, I am a work in progress as a trader and experience the same frustrations and challenges that I am sure most of you readers do. I don't mind making mistakes as long as I keep learning from them.
Anyway, I also got out of ADBE for 34.88 for little more than breakeven. It was struggling a little too much with the 36 mark, so I got out. As I was now on margin, thanks to my now large WYNN position, I sold half my OCLR position at 2.62 for around 2% profit.
From the watchlist I posted last night, CNC was up around 11% today. I wasn't able to take advantage of this pick but I hope some of you readers got in! I will be back later tonight with a post on why the casino stocks look so impressive here.
Take care and good luck tomorrow!