Tuesday, July 13, 2010

Let the battle of MA(50) begin

You readers don't need me to tell you that today's action was a one way street for the bulls with the markets starting and ending strongly. But I will say so anyway. Today's action was a one way street for the bulls with the markets starting and ending strongly! Today's close bought us right to the doors of MA(50) in both S&P and Nasdaq. Making things more interesting is the pending occurrence of the "dreaded" death cross which should happen tomorrow. We know how well that worked for the bears at S&P, lets see how well it works for NASDAQ.

Personally speaking, I had a great day today, selling ADCT, into which I had got in yesterday, for a gain of ~47%. The company got bought over for a share price of 12.75. I had always seen this happen to so many stocks, and wondered if I would ever got so lucky. Well, I did :-). I had posted about this stock in the blog for the last couple of days and also on twitter before entering it, so I hope some of you readers were able to take advantage of it too! 
Grand as these profits might be, right now I am a little angry at myself for how poorly I played ENTR. I had entered this at 6.60 yesterday, a perfect entry as it was the low for the day. I got out of it today at 6.73. It ended today at 7.11. Nothing wrong there, you might say. A profit is a profit and you win some, you lose some. I agree with that but I am disappointed about my reason for selling the stock. What was the reason, you ask? I had no reason!! I was pretty happy with my ADCT profits and felt like just getting out of my remaining stocks for whatever profit I could get and call it a day. Damn! That sounds dumb even writing it. Oh well, lesson learnt.

Try as I might though, I could not get myself to sell DOLE. It has a wonderful cup and handle pattern forming as shown below. So, I leave you with charts of these two stocks, both of which look very promising in my opinion. I have commented on the charts itself. Be careful of DOLE though, as important news comes out on Thursday.

I might be back tonight taking a look at how overbought the markets are here, if I get the time.

Take care and good luck!

P.S.: In case you are wondering, after selling ADCT and ENTR today, my biggest position is cash right now.


Anonymous said...

What is the important news coming out on Thursday for DOLE? I went googling and tried to find some hint, also checked their website ... didn't see anything concrete. (I did see an older merger/buyout rumor on Yahoo message boards)

What news are *you* referring to?

positiontrader said...

Hi Anon,

Its there in my Scottrade account. I will just quote the first paragraph for your benefit.

"The high-profile Dole banana case will reach a key and dramatic development this week, as attorneys for banana workers suing the food giant will argue today that their cases have merit; and, the judge overseeing the proceedings will issue her decision on those claims on Thursday, July 15. The judge's ruling from the bench could affect thousands of injured men worldwide and numerous cases pending throughout the U.S. against Dole."

I don't know how big this is but just wanted to caution everyone who decided to go into it about this.

Hope this helps!

Anonymous said...