Portfolio Management for October 24, 2013

Yesterday was not easy: markets were weak and I decided to rotate out of DWRE/TASR and into CIEN/DRI. I also partially hedged these positions with a long SDS. At the end of the day, all three positions were red. Besides these, I also hold a long UGL (gold ETF) bought when gold broke above the $1300 resistance level (this position is doing fine) and a long TBT, which I also had to trim by half because it started to bleed.

All in all, a pretty poor feeling at the end of the day.

In hindsight, I believe that selling TASR was unwise. Even though TASR no longer appears on the stock pick list, I might reopen a long position, because the stock's EV pattern looks good and it is in a stable supply zone.



We can see on the weekly list that SYNA was stopped out early in the day yesterday. The weekly picks carry a stop loss level of 5%. I often try to put my initial stops at 2% to 3% because manual entries are much better than those on the weekly lists.

SYNA releases earnings today. I would not have kept the stock anyway. It is good that it has been stopped out!



Below is the stock picks long list with different price levels calculated at various distances from the 5MA. The darker the green color the better the potential profit for the trade. I drew in blue my entry levels for the CIEN/DRI trades and in red my potential entries for today. If these are not reached, I will not cry. Patience is better for peace of mind.



These are the entries for today. Note that CERN has its earnings today. Hence, trading could be difficult. I might avoid it completely, depending on how it acts.