The new portfolio situation is below.
1. Managing current positions
When you are long in a down day, managing positions is always key.
P was slightly weaker than YOKU. However, P is just at a support level and hour stop is not far below support. Even if we hit the stop, the trade will be positive. The best is hence to keep the trade.
Regarding YOKU, if it bounces from here, I might sell because there seems to be a rotation out of these internet stocks.
ISRG attracted much money, as there was a positive report regarding the future growth. We can see that ISRG which was always in our daily short list, is not appearing anymore. What should we do? Nothing! Keep the stops in place. However, if there is a pull-back that is not sold (EV stays positive,) I will close the position hopefully at a more favorable price. If we gap-up, then the stop will be hit and the position will be closed.
DECK has been a poor trade, but the damage was limited because the long position was opened at the bottom of the buy range and the stop was kept close (just below the low of the past few days.) Not selling would have been a very poor decision. When a trade directly turns against me, I always close it, even if I have to reopen it on the next day. This is possible only if the transaction costs are low.
DECK is not in today's list anymore. Hence, this trade is history!
Just before the close, I bought a long position in LL. Usually, my initial stop is below the low of the past few days. This is the stop I would have used if I had bought LL during the day. Today, I need to use a lower stop, because otherwise, the daily volatility could easily "kill" my new-born trade. Hence the stop set just below the 100 mark (I'll update my spreadsheet.)
2. Possible New Trades
There are many new ideas. However, since the market is weak, I intend to buy new long trades only close to the low range of their buy zone and only if there is a positive MF in the markets (RT 20DMF!)
Below are the related Figures. You can see that the strategy is always identical: buy a pull-back, with a stop below the low of the past days. If a stock has a low price and high volatility (MHR,) then I would typically open a smaller position so that I can use wider stops.
I will probably open one or two positions only. This means that I will need to be very selective. As of now, DWRE and WYNN have my preference.