• Portfolio Management for June 2, 2014

    On Friday, I took 1/2 a short GNRC position and a long HELE.

    The risk table is below. The risk on the HELE trade is low, even though the probability of hitting the stop is 80%. HELE is indeed a "double bottom with a positive divergence" type of trade and a tight stop is hence necessary for that sort of trade.

    GNRC has a max draw-down of -4.16%, which is much higher than the risk on HELE, but the probability is 0 based on the close of Friday.

    I will write a separate article regarding how I calculate the probabilities.



    The list for today is below.



    The long trades are very typical settings: we buy a pull-back to support for stocks that
    1) have regained their 50MA and
    2) are still close to this level and not extended.









    On the short side, most of last Friday's ideas are still valid and below are the two that could be interesting.