Wednesday, June 11, 2008

What can you say about this market except...


I'm emotionally back where I was in February when I took a break from day trading, while not quite financially. I've made some great realized gains, but not enough to offset the damage this falling market has done to my portfolio. So, I'm off the day trading for awhile, and back to the slow steady rebuilding of my portfolio value through accumulation of blue chip equities. While I will no longer be spending 8 hours a day watching level 2's, I do have a list of things that I will be doing.

First of all, I will continue to update my Day Trading Research blog. Like I did in February, I wont be watching the daily ebb and flow of my portfolio, but I do keep up with watching the channeling and changes, because I will be swing trading some equities to regain some lost grown.

Next I will be doing some reading. Today my Encyclopedia of Chart Patterns and I am going to start studying that. I have also ordered DeMark on Day Trading Options and Options Trading 101. While I think I have learned quite a bit in the past few months by trial and error, I feel it would behoove me to spend at least part of the time that I would have spent day trading to learn some more about trading options for when the market finds a little more stability.

Third, I will start researching my July Seasonal Plays.

Fourth, I am attending TD Ameritrade webcasts to learn about their new Options 360 trading platform.

Now, about those equity positions I will be swing trading. I will be watching the following stocks for buying opportunities, using the support and resistance levels from Stock Consultatnt to determine the best buy and sell points. Since I will be trading the equities, and do not have to worry about the time decay associated with options trading, I will be trading around a core position, selling a percentage of my holdings when I reach a resistance level, and purchasing more as I approach support. Of the 5 stocks I have listed below, I already hold some PCU and HTE. The stocks are listed alphabetically, and you should be able to click on the chart to enlarge it for easier viewing.

DRYS: Look for entrance near $60.00

FWLT: Look for entrance near $70.00

HTE: Look for entrance near $23.00

PCU: Look for entrance near $100.00

SOLF: Look for entrance near $16.00

I don't have charts saved for them, but POT and GOOG are also always on watch for accumulation opportunity.

Always perform your own due diligence before making any investment.

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