SS- Appreciate your input, and
no I don't take it personally. I'd like to point out though, that key stocks that I follow in this market are acting differently than in a healthy bull, and that is a large part of why my trading is more volatile. Let me give you some examples. Mind you, I have certain rules on a technical level that I use to help me guage entry and exit points. One rule is 60% fibonocci retracement of rally gains, another is looking at stock action within 5 weeks after good earnings & guidance, another is 50 day moving avg. RSI actually is one that I take more lightly. So lets look at some stocks that are acting irrational.
CAI- This stock has now given back in six weeks, the entire 30% gain it had on the great Sept qtr earnings & guidance. Other stocks in the sector are acting the similar ie TRTN. This is very uncharacteristic of healthy stock action, and in my experience says something underlying is wrong(at least for now). I sold CAI at around $33, after is not only breached the 50 day a few times, but breached the 60% fibonocci retrace. The stock is now around $30.
ESIO- This stock was $27 only a few weeks ago, and at $20.40 has done a full 60% fib retracement, yet the stock has languished for a week now around this level. Not saying it won't spike back to at least $25 soon, but the longer it tests the fib retrace and doesn't spike back, the more I think the CEO comments have made cautious investors shy away past $21. I've tried getting in around $20.50 three times now, and each time the stock fails to rally past $21. I may try again, but for now(as of today) I like AAOI better(got in at $39.50), as LITE had great news today about the optical sector. I also like MU better, and I don't want too much in tech.
USCR- This one is a great long term hold, but another one that is very hard to stay in for long, as it's already selling for a 16 PE going forward on 2018 estimates. However the tax bill passing would make the stock worth $100 for sure. Still an iffy stock much over $80 short term.
HCLP is acting right finally ! I was only out of the stock from $10.10 to $10.50, so 4% mistake getting out. However this one is acting like CAI should be acting.
SS, I am up 73% for the year as of today. Hopefully the next three weeks will bring good fortune to us all. Best,
Wade
