The health care uncertainty rally was today, now we have states suing the Federal government and uncertainty introduced back into the picture. The move that started Friday I believe is the real deal and today was a relief rally.
Stick to your stops, but hang in there.
Tonight I listed a lot of high-flyers-very speculative trades, be sure to read whether or not they are limit trades.
We'll know more about where the market is at in the next 2 days. We are holding our shorts.
Monday, March 22, 2010
Gifts Are to Be Graciously Accepted
Today we received a gift from last night's long, RNN which is currently up 16.78% and as high as 25.8%. Trades like this, especially under $5.00 should be considered gifts. You want to either take your profits, or take partial profits, maybe your original investment or half, whatever suits you. They can disappear just as fast.
On the other hand, this may be the start of a new trend, this is why I say you might consider taking partial profits, but you never want to let a trade like this turn into a loss. It may consolidate for a month before another move up and that is opportunity cost. So make a choice that makes sense to you, but make a choice.
This is also an example of why we buy at the open and at market. A limit order would have missed this trade.
On the other hand, this may be the start of a new trend, this is why I say you might consider taking partial profits, but you never want to let a trade like this turn into a loss. It may consolidate for a month before another move up and that is opportunity cost. So make a choice that makes sense to you, but make a choice.
This is also an example of why we buy at the open and at market. A limit order would have missed this trade.
