The Cats and Dogs

It all started last week with our 4-day 215% gain in XOMA. As I've been saying though, this rally won't last long and when the trades trigger, you need to be on top of them pretty quick using good risk management. I prefer not to risk more then 1-1.5% of portfolio value (as per risk management formula-which does not mean you can only buy 1% worth, in some cases, you could invest your entire portfolio following the risk management plan-however, that would not be prudent and if you read the link at the top right about risk management, you'll see that I prefer to never invest more then 15% or so of my portfolio in any one idea). 


In any case, obviously the CATS and DOGS are working, when you don't risk more then 1-1.5%, you can afford to try the trades and the way it's been going, you're pretty likely to nail a few of them.


The other component is knowing when to take a gift. With the Cats and Dogs trades, these should be considered gifts, not so much trades because as I've said, they rarely last more then a few days. So my rule is any double digit gain, I take either most or all of it off the table, consider it a gift and wait for the next one.


The winning trades that triggered just today and yesterday have shaped up like this-

XING doing great today up nearly 32% triggered yesterday

CFW made a 1 day gain of 30% triggered yesterday, but you see in this trade, it's a gift and needs to be taken or your gift will be taken from you. There's little room for greed when you get a gift.

WEST seems to be doing pretty well, I'd like to see a strong close on volume for potential follow through

EEE is up 19% and as high as 30% today-a gift

FBP was a trade from last week at $.33 it's currently up 42%, intraday as high as 60% . I think I'd be locking this one in or at least a major portion of it.

FTK triggered today, again we're looking for a solid close on good volume, if that happens, we might just get that follow through buying.

I've placed a few more trades on the list today and I'll be looking for more tonight, but this C&D rally seems to be winding down. If you decide to let a trade ride, be sure that you have locked in enough gains so that it does not become a losing trade for you.