Hope, Love, Blogs.... it's all such a happy place. What are we hoping for by the way?

You should maybe go back and read your post Jeff, it seems to be missing something....

Thanks for the demo on how to print - YOU ROCK!!

Jodi

Proof reading is over-rated.

Funny, I thought it was one of the rules.....

And proof reading is for weenies. Us canucks... although we do notice mistakes in other people's lack of proof reading... are not weenies. The Senators in 6.

Incidentally, LCC is at a potential entry point, although it's taken a pretty large hit lately, and with the merger anouncement may actually be turning around.

Excuse me while I go change my underwear. What a day.

Chris,

the easy money has been made on that one. Plus support seems just below. i still think AMR hits $20 over the next few months and if you don't mind earnings coming up real soon, RYAAY has double topped and held resistance.

If anyone is still in VIP, they have earnings coming out tomorrow before the market opens. If you don't want to hold over, you still have time to get outta Dodge!

Hey Chip,

I'm considering an OTM put play as a hedge.

Brett,

Knock yourself out...I've been in an OTM Call for a while and am going to let it ride.

A put play may be the way to go!

Okay. I haven't left yet. Just checked my watch list. BFAM and CYMI are getting close to their break. Watch them today and tomorrow and look for it with some volume. Hey, puts are in today.


Randall and Michelle

Brett, I'm with you on the bull stampede. The trend is up. This is a blip.
The old high will be taken out on the S&P. The market is just shaking out some people at a level of resistance. Bears like fresh meat. That doesn't happen until we trade thru the old highs and beyond.

12 of the S&P 500 have been taken out by private equity so far this year. Liquidity rules right now. Todays story is the market is weaker on higher rates. Is a 4.87 yield on the 10 year a big deal. I'm not buying 10 year treasuries. I'll still stick to this market. Stick with Jeff, stick with Brett, stick with the blog...it will work.
A 3 day weekend this week will probably yield a couple of more takeovers.


Short PSA, ESS, AVB, PLCE, BBY (because nothing told me to get out)
Long: Too much (painful but I bought time)

Jeff, thanks for the case study. The blog gets better every day.

Jamie

Hi folks, if your getting hammered today you may be too heavily bullish. If you need some bearish plays to balance, here's a few I pulled from my watch list today that look to be at possible entry points.

ASFI, PVTB, PNFP, RHI. I'm really liking the RHI entry. It rose up right to the top of the last gap and has now turned down, although the volume has been light. And a bonus... 3 red arrows.

MikeH

Mike,

Great post. Allow me to add INFY to the list.

Some low risk entries via a bounce - look at CVX, XOM, SLB, GRP, etc.

Trend is your friend!!!

Thank goodness for position size and diversification. My short positions are: AVB, INFY, KIM, BBOX are keeping me on the plus side today.
Ladd

Oh, sweet Patience how I love thee. Bring your sister Serenity and I will marry you both.

ESS

:-)

EMC has pulled back nicely, looks like a low risk entry point right about now....

During a day like this in the market, my stocks have moved away from risistance. Normally, it would be where I would get out and cut my losses. How many of you get out on a day like this or wait till the next day to see if there is a correction?

I don't get out until my plan when I entered the trade tells me too. All my trades are still within the plan. I don't wait til the next day either. I wait until I get a close above or below my line in the sand, which I established before I took the trade.

That does not mean Denise that I am not throwing all kinds of stuff at my computer screen today, as my trades are more bullish than bearish, since the market is more bullish than bearish.

But you cannot panick and get out of trades on a few down days here and there. This is why we but time on our trades, to let them move up and down...in the direction you planned for...

This blog rocks, before I wasn't prepared for days like today, but know I like the feeling of knowing that I have learned enough to diversify myself so that today doesn't hurt, Thanks Jeff and everyone for that matter who is on this blogg.

OIH looks good for an entry today.

When failure isn't an option, sucess is the only option I'm not willing to trade!!

A question for King Kohler - and it may be a stupid one.....

I was just wondering if there is any significance to the Dow making higher highs and lower lows the past few days. it looks like a reverse pennant (<). is this any sort of screwed up price pattern? Thanks man.

Stephen

Denise,
Remember, our stocks are not the stock market. It really doesn't matter what the market's doing... it's what your stocks are doing. If your stock breaks it's trend and falls through support... ditch it. I have made quite a bit of money off puts on LCC and STX in a bull market. And Catherine will be very quick to point out that I've also lost even more money on calls on uptrending stocks (or at least they WERE uptrending when I bought them) in that same bull market.

Slowly but surely it is sinking into my psychy that I must just look at each stock as an individual (much like I do with my girls) and assess them on their own merits, regardless of the market. PCP and EMC are good examples of stocks working against the market (today, anyway.)

We're now into the final hour of the day. Time to assess the ones that we're going to ditch. I think ATI is toast... and ISIL too. Other than that... despite a bit of a pounding, I'm sticking with them that brung me to the dance.

Hope this helps.

Stephen...

Broadening formation. Normally represents reversals in trends and found mostly at market tops. However, they are more significant over years/many months...very insignificant over days. So what that means is that the market might pull back a little, less likely of anything significant.

liz (and grant)

Did you make that up? It's so deep it makes my brain hurt.

I like it.

Chris(catherine)
You know what it's something my husband has said for awhile but I think I messed it up.

It should go

When success is the only option, failure is an option I'm not willing to trade!!

or

When failure isn't an option, success is the only option I'm not willing to trade

I think that's better=)

I'll have to ask him when he gets home.

Know my brain hurts

What do you think sound better?

well,,at least my VIX hedge is working like a charm


sue

Well, well I had to run to business meetings and this is what you all do with the market! At this point I am finding humor in my trades as I thought I was balanceed between short and long positions until this week stopped out several of the short positions and now what is going on with PFCB? Got stopped out of a gaining trade for small loss in CEG this morning and I guess missed what caused that drop.
NM announced share offering at $10 what does that mean to us holding the stock?

Hello fellow addicts. Days like today are tough for me only because I usually have to make some difficult decisions.

TK was one of those. I exited at the end of today because my entry a couple of days ago was based on the premise that it had formed a low and was starting to move up. Today, I couldn't find anything to support a claim that it is still holding support. So for me, my entry was wrong and I had to go. Anyone else have different opinions on how I should look at this? I'd love to hear them. Or, if you agree, I'd love to hear that confirmation as well.

On the other side, I stuck with BNI and X and most everything else. BNI is still in an uptrend and X had some nice price action that looks just like holding support to me.

liz,
Let me consult my giberish/english dictionary.

Hmmmmmm, I can't figure out which one makes the most sense. I think the failure not being an option works best for me. Anyway... it's the thought that counts.

What happened to PCP? It was one of my only winners in the call department today and then POOF!!! it plummeted at the end of the day.

Poop.

All I can say is unbelievable!

Anyone else see POT go to pot, still hasn't broken my resistance,though.=0

Differing opinions?

Stephen,
I think $NDX a good example of a broadening Top. Draw a a trend line up from 11/22/06 to 1/12/07 to infinity.
Then maybe a trendline DOWN from 11/13 to 12/26 to infinity. It loosk good on a 2 year chart.

The price of all the indexes just 90 days ago is amazing.

L&G,
I bought some POT today when it was down 9, looking forward to the split.

Hey Tim, I feel your pain on TK. I'm still in it. I didn't see any real support either. I have my stop at 57.50 based on the price action after the big volume and price jump in April. I don't know if that qualifies as support but it was a good place for me to draw a line in the sand. Another day like today and I'll be out too.

Yeah, if the market recovers soon, this might be a great entry point for POT. I have been watching it.
However, I want to see how it does before I take action. That was quite a drop. Did all this happen because of Greenspan's negative comments? That's scary if the market is that shaky.


Randall and Michelle

Another victim to TK here. I just started the trade and now know that it was just wrong. The long term trend was nice, it looked like it was having a support bounce to keep the trend. The intraday punishment looked to be over as it broke out of the downtrending resistance line yesterday morning (which is easier to see on the 30min charts); however there was not strong enough volume. My call option losses are 5% away from calling it quits. One ray of hope is that it is stretched pretty far from 30min/30MA and is likely to rise to meet it tomorrow. I am out if it bounces down.

Jeff did you "xit" X. I'm still long, will evaluate again tomorrow.

Everyone's talking about a long weekend coming up, but then in the next breath talk about trading tomorrow. Don't you people take holidays on Friday? I'm in an airplane all day tomorrow and would much prefer the markets be closed. Someone look into to that, would you?

Mind you I'll be in another airplane all day Monday, too... so it doesn't really matter. I would ask everyone to pray to the Friday gods for me... that tomorrow is not a disasterous day... as I won't be able to get to a computer until after market close.

Good luck to everyone tomorrow. Picked up a couple of new puts today, so that should give the markets a nice boost tomorrow.

Jeff,
I just now read the disclaimer at the end of this page. Oh, my gosh, that was funny. Thanks for making me laugh at the end of today. The Market Cast was, as usual, also informative and funny.

Chris and Catherine,
Enjoy your holiday.


Randall and Michelle

C&C and Jeff,

I now have read the disclaimer at the end of the blog as well and am equally thankful for the lift going into the long weekend. I guess if we were all legally sane doing what we do we would not need such a disclaimer. My name is Sean and I am an option addict. Be back soon......I need to call my sponsor.

patience....patience...patience...

well, i think my patience is running out for good ol'greenspan....everytime he opens those jaws the market retracts!!!

FERME LA BOUCHE GREENSPAN !!!

okay now i'm not upset anymore...so this is how the day went....we are on an awesome family vacation (and yes i kept the trades going, since i have the laptop with)
we come in from the pool just after 4pm, feed the baby, turn on the computer, log onto TOS and holy hell !!! all my virtual profit gone (well not all of them, but alot of them)
of course AVB and IYR did great
BUT the i NEED HELP ON is CEG....

is anyone long CEG ???? if so please shed some light here....yesterdays price action was okay for me, i saw it as a little pull back, but today made me think twice.
i have horizontal support drawn in around $89 and it likes to stay above the 30 dma (except today) so in one perspective the trend was broken and in the other it is right there just flirting with it.

Jeff and all the bloggers here have taught me that "all we need is just a little patience" (wasn't that a guns'n roses song back in the day ??) and i have been doing good, belive me i would of never been able to hold on for the retest of the neckline on AVB before jeff made this blog and look 2 exhales later and i'm still in.
but i need some help with this one...
i will be anxiously awaiting some words of wisdom....

thanks
tonya

ps...cute pic karen

Jeff,

I don't know about the educational content of other sites (though I bet this one tops all of them). But I can guarantee 1 thing for sure:

NO ONE will ever have more fun learning and working than we all do right here.

Thank you for never giving up, for continually pushing the humor, for coming up with new content (despite the constant influx of new people), and also thanks for facilitating an environment where I've met some really great people on the same path I am.

I hope you, Amber and the kids have a terrific holiday weekend, and hopefully you will get to relax a little.

Jeff et al,

Woke up yesterday morning in Utah, closed 2 bullish trades that weren't working, set some stops and went mountain climbing before heading off to the airport. Didn't get to check the market until after the close. Knowing that I was following my rules helped mitigate yesterdays punishment. And being long QID helped as well.

If anybody wants to know why Jeff is sitting in that picture with me and I am standing, it's because we couldn't both fit in the frame at the same time otherwise!

Have a great weekend everyone!

Doji (5'2") Girl

Tonya,

I was in in bull call spread yesterday (a 90/95 bull call) on CEG after yesterday's action I converted it into a bear call spread (a 90/85 bear call spread). I am no longer bullish on this since it broke below multiple level of support.

Just a question, what was your stop point on this?

The move yesterday was with volume and hance had momentum behind it.

Mahmood

I left on Wed mid day with a gain and by the end of the day the market retreated, I could not trade yesterday so I could not pull stops,(I think that was a good thing, hopefully).
Volatility is crazy, for all new traders, the key is not to panic, we all know that the market can't go up indefinitely, this is the name of the game so take it easy, take the loss if the sign is there, but do not over react. Jeff says the number that is most important is the closing number.

My put plays are doing great, thank goodness for those.

Lets make some money!!!!

Jeff and everyone, have a great weekend and dont forget about memorial day, if you see a soldier go up to them and thank them in person for defending our country, they could have become option addicts, but they chose to defend you!!
Vip had great numbers lets see what we get from the market

X

I took the trade as well. On a big pullback across the board, lots of bullsih stocks I thought showed good support, including X, So I am still in X and trading my plan. I will not exit it until it gives me reason to....and it has not.

GOOG

I felt google had a level of support at the $460 area, and went long on 5/11. My line in the sand was a close below $455. I thought yesterday it showed a lot of strength and support at the $472.50 area, which is my new line in the sand. I may add to my position today, regardless of todays news.....

BNI

I thought again another bullish trade that held. I took the trade on 5/16, and did not panick yesterday. Pre-market today it is up $1.25.......

This waiting till the end of the day has made a huge difference, along with my better entrys and relying on my plan BEFORE I put my money on the table. Emotion....no longer an issue.

This blog ROCKS! and so do all the contributers.

I wish you all a great weekend.

Let the open the gates, release the bulls...

Am I upset that I bought OTM puts on VIP yesterday? Not a bit. It was that or sell my calls.

You down with VIP? Yeah, you know me.

Bob , Cramer was pumping GOOG last nite. He said it was cheap @ this $.Futures are up could it be a dead cat bounce! Next few days will tell. I,m still sitting tight.

I'd like to see GOOG close above $480 today :)

BNI at a low risk entry...

REDF at a good entry as well. As I said previously, I had heard this stock is a potential takeover target...but who knows. Still a good entry point.

Opportunities for Friday?? - What do you think?

Long Opportunities?:

BNI - I like it
FTI
CTRP - China too risky?
HRS
MUR
NOV


Short Opportunities?:
DNA
looking for others


Loving the blog as always.


Brent in San Antonio

I would like to point out something very important:

INVESTools teaches candles, and I'm all for learning about them. However, Jeff doesn't trade candles, and while I DO look at formations as a part of my analysis, I don't trade solely off of them.

Case in point:

Look at the last few days on AMG. Doji at resistance, followed by a gravestone doji at resistance. followed by a huge engulfing hammer at resistance.

Candlestick followers wouldn't get a clearer sell signal than that. I chose to wait. Look at today's price action.

Price and volume. Trendlines and support/resistance. That should be 80% of your analysis.

Brett....

with you 100% on that...The more I learn, the more I learn...

thanks!!

Alright, let's go...

Who wants to be the first to start freaking out about AVB?

Let's go...

VIP did great over earnings. If it holds today, I am going to add to my position.

Bob,
I agree with you. I am watching GOOG closely. If it breaks through 480, I'm in.

The market is rebounding. My puts are struggling, but who cares.

Randall and Michelle

I will freak out with you Brett although I am not on that one but I am on ESS same thing going on

Amg I had a price target of 130 anyone like to comment on that one?

oh I forgot nice bounce on AMX

All in all my account and trades are in good shape:

Holding patterns during this "low volume" day: bni, col, tk, exm, hni, mlm, sbs, x, zran

Watching closly (not exiting on a day like today): isil, iig, hni, ckfr, clb

Tuesday will bring the bulls back. Many have started the weekend early (imho).

This up and down is very normal.

Have a good weekend!

thanks
strat

Not in AVB but might be a nice entry point.

One thing, thats right one thing, that made sense from CNBC they talked about how the extra day (holiday) could bring more mergers as they have an extra day to work deals. Who knows, I started reading Reminiscences of a stock op.. let the tape tell you what to do, nothing else

I am in ESS, too. Don't freak. Look at the chart. It's doing okay.

Bob,
Check out GOOG.


David,
I just finished that book. Got a little bogged down at the end with all the market manipulation. I'm sure when I pick it up to read it after a little more experience, it will make sense.

Randall and Michelle

For those of you who are in VIP. Very nice!

NFB looks like a nice bearish trade. Yesterday may have been a better entry but it still looks pretty good.

Not freaking out about POT today. A lot of stocks seem to be making up (or trying) for yesterday.

Of course puts in the pooper. But that's okay because... diversification and position size.

liz
pasadena, ca

GOOG

Bada Bing.....

HOG

I am still in this trade, line in the sand a close below $62.00

Double up on PCP at the 112.50 range. GOOG is flying

Bob-

They both look nice!

liz
pasadena, ca

Wow on water transports
omg osg tk?
fro

anyone has a price target for COGO?

I like PCP as well, but I am going to wait and see if it pulls back some more. Down in an up market, it may have another down day or two next week. On my radar...

I recall Brett saying AAPL to $100...

good bearish play om AEM if it breaks small resistance 33.70 it has a long way down

Let me clarify:

I wasn't freaking out on AVB. I wanted to see who will be the first to panic.

CMG is breaking from its flag and as always on Fridays I'm eating lunch there so you do the math.

BCSI

could be a good earnings play.

Brett..if you could do me a personal favor.

Look up CMG on GOOG, ride your HOG to the BNI train station, go to vegas and play at PENN, then make sure you have some X in your diet, then invest in GS, and I will be a happy camper today..

Bob & Brett-

You guys crack me up!

liz
pasadena, ca

Brett, I was wondering about that panic comment as that did not seem like you. Bob you do not as for much from your friend Brett do you? I know I am late on that CEG question but I was long until yesterday and called the IT coaches and based on my rules and entry point I was advised to exit. Really I had already been stopped out so they were just confirming I guess. So which one of you let the bulls out - Thanks! What a week...I need three days.

Hey Liz, I was in Pasadena at a dinner meeting last night, corner of colorado and pasadena. Should have looked you up I guess but with the traffic all I could think of was two hours to drive home.

if anyone here is going to be at the orlando basic options class next tues/wed, ill be the assclown with the computer bag strapped to his back and hunched over the danish table. let me know and ill save one for you.

-stephen

Bob (and Pam)-

Where do you live? Is it 15 minutes away but with traffic it takes 2 hours? Just kidding, kinda!

My husband manages a restaurant in Old Town and we live within walking distance of Old Town, about 5 blocks or so. Next time you come up let me know... We've got 3 small boys so I'm somewhat limited when it comes to spontaneousness (does that even sound right?). Anyway, just let me know.

liz
pasadena, ca

can anyone check the overall volume of the market? it does not look like ther is a lot of volume on this rally

I don't dare speak for Brett, but I think he was saying that one up day, especially at the open, does not constitute a trend..or a change in trend, or a reason to throw up. AVB at resistance, making lower highs and lower lows. Looks like it may be getting ready for another good bearish entry, but you have to be patient and watch the chart.......

David,
I don't know if on a Friday going into a holiday weekend, it would show a lot of volume anyway.
Typically the day before a holiday is low volume.

Randall and Michelle

HOG really squeezing my nuts today...

TSL which was a fun ride on the way up is looking like a descending tri that's about to break. Put it on your radar for next week perhaps. My rules say don't enter option trades on a Friday before a 3-day weekend (unless you're selling premium) but YMMV.

Liz, Rowland Heights the other side of the moon in LA terms. We have a 13 and 11 year old that are ok to leave for short dinners if that is something of interest in the future.

Karen,

I am curious. Why would you not take a trade on a friday, holiday weekend, if it is a good day to enter had it been a Thursday, or any other day before said weekend?

GOOG getting ready to blow up this symmetrical triangle.

GOOG kinda like sex, right there, ready to explode...

Back away, she's gonna blow.....

To tell you the truth, I didn't even know where Rowland Heights was. I just looked it up on the map. It doesn't look like it's that far away. We have to drive down to Irvine quite often because my parents live there and it takes us (when there's traffic) about an hour and half. You guys look a lot closer. Dinner sounds great sometime. I can always get a babysitter as long as I have a few days notice.

liz
pasadena, ca

YEAH POT! YEAH ISRG! Though, I think ISRG may be settling at resistance. I need some more volume to push it up. Can you work on that for me Brett?

liz
pasadena, ca

Thar she goes...

Question, isn't OMG a chemical stock ? It's in Investools Chemical industry. I've been in a trade on OMG. I am not sure if I am missing some other symbol.

Jamie

omg is chemical

i listed them with water transp before sorry :)

Bob, I see you are trading GS to the long side. A bearsih play in the group may be BSC. It looks like it is breaking lower out of a symm triangle. I drew it from the 2/22 candle.

Jamie

VIP rocks,

I held " VIP" over earning with appropriate position. It is screaming now.

Long: VIP, Weekend

Kas Sleep Less in Seattle

Bob,
The reason I don't enter an option trade on the Friday before a 3-day weekend is because I don't feel like paying for 3 days of time that can't help my position at all. If it's a good trade Friday afternoon, it will be (or should be) even better on Tuesday when the markets reopen. But like I said, YMMV. In any case, TSL hasn't really made the break down yet from support though it's sitting right on it.

Liz, here is my email bob@noburnca.com and as I will be out for the next week or so maybe in a couple of weeks. Need to check with Pam as she maintains the social calendar, I just work here...

DavidS,
ref: volume, you can always use the sum of UpVol and DnVol on thinkorswim (intraday), but to put things in better (longer term)perspective, i like to look at SPY or QQQQ, and add an MA_BS and SMAE volume study to the Prophet chart.
It is of limited use intra-day, however.
Hope that helps.
Kevin (in CT)

Bob-

Thanks for the email. Couple of weeks sound fine. I know we can't do anything for a couple of weeks either.
Our email address: lizandgrant@yahoo.com

liz
pasadena, ca

will someone please let the bulls back out....

what is YMMV?

YMMV is Your Mileage May Vary. I hope you didn't try to punch it up on your chart! I'm used to posting online in acronyms but I guess on a stock related blog such as this, it might not be such a good idea.

Boy was I way off....I thought YMMV was your money may vanish..jeeesh..

Bob,
Thanks for the best laugh of the day! Nearly spit my coffee on that one. Your money may vanish...great one!

Does anyone have a take on the REIT's such as AVB, ESS, etc...? A big REIT is being targeted for a takeover and they are all up big on the news. My question is, does this fundamentally change this trade for those of us who are short these stocks?(i.e., long puts) Do we wait for the our stops to be hit or the patterns to be broken or do we just bail because of the change?

Jd:
Do what you feel is right. If you are uncomfortable with your position take it out. If the news comes out it comes out after hours so your stop will not work.
You could protect your position by buying calls against it, but you need a good move to either side.

You could also take contracts out if you have too many.

Hope that helps, by the way I am sticking with ESS.

Have you taken a look at ORBC? Do you think there could be more upside to it?

I see a bunch of possible support bounces today on fundamentally good stocks (anyone got any bearish plays?):

BEAV supt bounce; bull flag
JPM supt bounce; doji (wait)
RL symetrical triangle (earnings Mon night)
VSEA supt bounce (?)(split on Tu)
AFG ascend tri; harami @ supt
ARTC pennant (who knows which way!)
BW bull put spread (supt under 50)
CEG supt bounce; invert hammer, need confirmation
DB supt bounce (see dividend)-- i would wait for strength
FLIR supt bounce; descending (bullish) wedge
HP supt bounce (Harami)
MCHP supt bounce
MTN supt (@MA?) bounce (Harami)
SSL supt bounce (Harami)
STLD supt bounce (inside day)
TRV supt bounce; may not be done yet.

happy hunting; great weekend.
(note: for me, harami means wait til Tuesday and confirmation).

Kevin (in CT)

David, are you telling me to trade based on my FEELINGS??!! LOL. I too am still holding based on my rules. But my rules don't say anything about what to do if my positions are adversely affected by M&A activity. If you ever watch Mike Coval's market commentary on the Dow and NASDAQ , he frequently closes them by saying "...and remember, news changes everything." So do I ignore my pattern and technical analysis and bail or do I hold tight? There's probably not a 'right' answer. Mostly wondering what others thought, particularly those who may have gone through this before. Thanks.

Addicts,
Does anyone know what caused INFY to gap up 1.50 this morning at the open? I've been searching news stories, but I haven't found anything. I thought I would throw it out to the group. It's been a great put play until today. I know I need to watch the resistance level @ 50. This gap up does concern me though.
Thanks,
Jeff

YMMV, Maybe Kohler can use that as a disclaimer ......


Tom DeGroodt

JD, the bottom line is react rather than predict. In the big picture, I think you will do better by ignoring "potential" news items that could throw your trade. That probably means that every so often, you might get hit negatively with something out of your control. And that stinks. But it shouldn't kill you because you are position sized correctly. But if you jump in and out at the "potential" of every news item, you'll miss far more.

HON looks like a delicious little setup today. Bullish Engulfing at support (20DMA). Get my money.

-stephen

JD:
What I am trying to say is that you have to live with yourself and make the ultimate decision. So if you are not 100%sure on the trade get out, would you rather get out with no loss or stay and your hunch is right and lose the whole premium? No there is no right answer, but are you going to mind if you lose the whole premium?
There are millions of trades out there if that one does not sit well take it out go to the next. News changes everything is right, you have some news what are you doing about it?

I am staying because that is my style and I do no mind losing the premium (mind but willing to take the risk)

Although, feelings are not supposed to influence your decision, sometimes they come out for specific reasons and you should re evaluate and convince yourself why you came to that conclusion.

Hope that helps

PFCB is currently pressed up against downtrending resistance, 30 day avg and 200 day avg all converged at the same time. Looks like a real good bearish entry. If it pops past all 3 of those your out.

MikeH

David, I'm 100% with you. Ultimately, I do have to live with it and frankly, that's why I have rules and use stops. I can't watch the market and I need to protect myself from adverse news. I could have gotten out yesterday with small gains in these positions. today they are down and 3 days ago they were also down. Who knows what the next day(s) will bring. My mistakes in these trades have nothing to do with news. I have 3 correlated positions which effectively violates my position size rules. But it will also be the last time I make that mistake!

Tim, thanks for the reply but the news is real. Check out ASN. It moved up +7% after a report said another property company will purchase it. It took AVB, ESS and the rest with it. My question was if and how I should react. No soothsaying here.

Sorry, JD. I misread that. I thought you were concerned about some rumors of news that might possibly be announced in the future.

I think when you're looking at a move that has happened, it's not bad to find out what may have caused it, but I would still let the price action trump everything and it wouldn't necessarily change my exit strategy. I'd still have the same support and resistance lines and targets.

So, I guess what I'm saying is that I don't let the news take me out, I let the price action take me out. If the news is significant enough to cause price action that tells me to exit, then I do.

Again, I'm not looking at your specific case closely here so these are just general comments.

Don't remember who recommended the Secret, but I read an excerpt from Amazon. It's not a book about trading, as far as I can tell, it looks like a New Age book about thought patterns.
I think I'll stick to Zig Ziggler and Kiyosaki for motivational reading.

Thanks anyway.