• Portfolio Management for January 12, 2016

    Yesterday was not an easy trading day. I entered four new positions and had to exit three of them.
    Let's review these:

    INFN played well early in the day, but then drifted back down to our entry price. I bailed out at breakeven so that a good trade doe snot turn into a por trade in a very weak market. The end of day bounce was not INFN specific and hence we cannot say that the bounce has legs for today.



    ARMF started to work well. I shorted on its way down (taking advantage of the negative trend)



    Later in the day, the stock bounced back up, but we did not break the High of day and large players were not supporting the bounce. Hence, I kept the short position.



    LLTC started also very well, but large players came back in and I prefered to bail out at breakeven.



    WNR also started very well, but the stock suddenly broke below the LOD and I decided to sell.



    We had a weak bounce at the end of day. It is almost a short idea, but WNR is a very profitable refiner. I will keep it as a long idea for when the market bounces.



    As you have noted, I only used 1/2 positions on these trades, simply because the market is very volatile.

    I would like to also point out to two big misses:

    RAX lost much yesterday. It was on our short list on Friday, when I bailed out on large player's accumulation. Now, we can see that these large players were wrong and everybody sold.



    BLUE was also on our list for today, we it broke through the short zone early in the day and was "out of range"



    The consequence is that the Portfolio is now 30% short. EDU looks fine, but I'll need to cover in the next days as the company has its earnings soon.



    The trade ideas for today are below. Still more short than long ideas because the trend is in that direction, but I am still looking at the long side. Depending on how AAPL acts, QLD could be interesting to buy.