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Pascal
02-21-2014, 11:08 AM
I bought a Long P position when the stock pulled back into the buy zone.
I originally had a buy order at 36.98. The price pulled back down to that level, but triggered a strong bid, which means that the support was attracting money. I therefore bought at market there and the trade was executed at 37.03. However, I only took 1/2 a trade, because I believed that we would retest the LOD, which we did not...

Anyway, as of now, the price has bounced, but EV is not positive. This means that we still might pull-back to support, where I'll be waiting again.

LOW looks miserable here. The short position looks good for now, even in a strong market.
My simple theory is that last year, funds where shorting the miners to hedge their long positions. This years, the miners are being bought and hence, funds need to short another group of weak stocks and retail looks pretty weak compared to the rest of the market.



Pascal

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