Thursday, May 13, 2010

Bulls have to protect 1150

An interesting day dear readers where the bulls were consolidating below the MA(50) for most of the day before the bears took over. The day definitely belonged to the bears but I am still not ready to go short here. Overall, we are still trading in a range and will continue to do so until the bulls manage to break MA(50) or bears manage to take down 1150. Until either of these two scenarios takes place, I still think cash should make up majority of one's portfolio. The bulls would do well to just hold back the bears here to make them lose the momentum gained from last week. Moreover, they have additional support creeping up in form of MA(200). 

Personally speaking, I doubled my overnight TIE position at 17.25. I sold half at 17.90 and still hold the rest. It looked pretty good for most of the day with volume also looking good before suffering along with the rest of the market later in the day. I had pointed this one out yesterday and hope of some  of you readers were able to profit from it! I am interested in seeing how gold stocks pullback. I might start building a position if its a low volume orderly pullback. I am still trading less and small but things should hopefully be back to "normal" with my life in a couple of weeks.

Take care and good luck!

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