Take The Gift And Sell The Gap Open
Today's market was a a microcosm of 2014 so far. There was a classic gap up open that was immediately faded until the market went negative. Then the market made some tentative bounces but ended up nowhere. The NASDAQ was the worst of the lot as the S&P 500 finished fairly flat.. As I have repeatedly stated, I do not trust this tape and have compensated by trading very fast, grabbing my profits when I can. To that end, I sold BIIB (up 5.5 point), YELP (up 2.25 points) and QIHU (down around 2.75 points) all on the gap up open. Then I waited for things to settle down - which it did except for crazy day trading special situations.
As for other stocks, I laid low all day with two exceptions. I purchased some RDN which I mentioned yesterday. I intend to hold on unless this market really starts to sell off. It is almost at the breakout point.
I also traded GALT in and out 4 times and am holding it overnight. I do not recommend purchase of this momentum biotech stock. Biotech stocks were hot today led by GALT and ICPT which had news. My trades were all based upon using the day tic chart selling the rips waiting for a pull back and buying the next moves up. This was a world record for me because I have always had diminishing results in day trading one particular stock. Like flipping a coin, the odds of 4 successful day trades in a row are tempting the trading Gods. I will probably sell early tomorrow - maybe even pre market before the unemployment report.
Lastly, MONIF was up nicely today after MONIL was up big in London. I may sell if it reaches it's old spike up highs. I love the stock, but am fearful of this market. I can always buy it back.
In sum, this is strictly a fast trading market until the dust clears. I will trade breakouts, news driven special situations and hopefully find longer term investments as things go on. I will also go short if things really start to turn down. But I will not chase my tail day trading the indexes. One last note about updates. They are very hard to do in the heat of the battle. Sometimes I tweet during the day as I did today with many of my moves.
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