It is the first trading day after the July 4th. SPX index and INDU index both close slightly in red. This is a very positive signal for the bull, as we see almost all the dip are bought today intraday. This is a sudden dip for SPX from 1340 to 1334 around 2pm. But it is quickly bought back.
What a nice move for NFLX. It is a decisive clear break out making the new high. We see the big gap in the opening and continue going up in the first 5 minutes. My question is : under what case, can I chase this kind of strong move? If chase it under this case, say entry at 283, there is still a $6 dollar profit at the close. I bet NFLX will continue the up momentum tomorrow.
I am having a under water trade for QID. COMP index is up due to the strong move of NFLX, even though SPX and INDU are close in red. I observe that usually NASDAQ have strong move than the SPX. It is better to buy SDS instead of QID if want to have short ETF. SPX is more normalized than COMP, which makes it more diversified. I thought I placed an intial stop for SDS at 48.55 in the open, but it turned out I made a mistake to set the stop at 47.55. I need to pay more attention next time. Stupid action! Now I have stop set at 48.15. I feel that I am very likely to set stop out tomorrow. Actually when QID was 48.80 and 48.55, I was thinking to cut the tiny loss at that moment. But I did not do it. I feel that was a weakness I have. Need to avoid it.
Lesson: Do not short the index while in any bullish move. Look for individual stocks to play under this case.
I have posted a shopping list yesterday. 95 percent of them are green and over 2 percent gain today. To name some, SPPI, VRX, APKT, ROSE, RES, GPOR, JAZZ. My conclusion is that, in the bull market, it is safer to long the relative strength stocks even though they may seem overbought. Strong stocks always attract more buyer coming.
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Some stock I watch tomorrow: VRX, TNAV, HNSN, TZOO, DEPO, NVMI....
Short idea: CIEN
Too many watch list. Need to focus. Say 1. VRX first choice, swing trade for several days. 2. AAPL: call option for a day trade?
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