AEO started to tank along with all the other apparel stocks thanks to a general downgrade.
I took that opportunity to increase the long position. At first, this looked like a good choice, but the stock closed lower than my second entry.
However, the EV pattern still looks good. Earnings are tomorrow and I still intend to keep the position through earnings. I will pay the consequences if the company misses or if expectations are lowered.
The decision to exit the LVS short trade was wrong - in hindsight. I detected money moving in and tightened the stop so that a good trade would not turn into a bad trade. What happened in reality is that the stock pushed higher due to competitor MPEL being included in an Emerging Market Index. MPEL gained 3% on very high volume and pulled LVS higher early in the day. At the end, LVS reverted back down and I was stopped out of the trade.
IMPV also pulled back yesterday. I initially tightened the stop, but finally decided to keep the stock because of the December effect that I hope will push us higher. So IMPV moved from being a strong LEV pattern trade to a "seasonality hope" based trade. I fear that I might chicken out of that trade if seasonality does not push us higher.
Finally, I opened a 1/2 long LNKD. I was waiting for better prices, but had to settle for what the market was willing to give.
For now, the Portfolio is 50% long. Note that my average entry price for AEO is now $15.17. With the pull-back of yesterday, I had to adapt my stop loss down. This level is however not a real protection as an earnings miss will push us below in a down gap.
The ideas for the day are below. The ideas in blue are energy stocks. The pink ideas are Breakout/breakdown on volume