Friday was a bad day for bulls but at the same time it wasn’t a great day for shorts either as the price declines came with few stocks having terrible sessions and instead it looked like it was just a normal profit taking session in the midst of an uptrend. No matter if this is the end of the recent uptrend or not doesn’t really matter to us as we are reactive investors here at BigWaveTrading and realize that the market tells us via individual stocks whether to be long or short. This week, for the first time, since the downtrend started in October 2007, we had more longs and potential longs setup and show up over possible future shorts. It has been a long time since longs have dominated my buying/selling and I have to tell you it was nice to finally see more than just one or two nice green-filled charts. Still the market isn’t clearly out of the woods yet as we have a new short tonight. That new short hints to me that I shouldn’t be so confident or sure that a new intermediate term uptrend is here. If this was a strong rally, we might have had a new long instead of having a new short after Friday’s stock market session. However, we take what we are given and TTEK is definitely a short setup that I have taken in the past and will take again in the future. Remember, that since the trend is up on the short-term and sub-intermediate term that we need to keep this short small. If BOP was max red, volume was huge, and the price was closing right at the LOD then we could go short a big position. However, without a long or short being a perfect setup in this market, it is too dangerous to commit a lot of capital to anything we are not 100% confident/sure about. TTEK is good but it isn’t great so keep it manageable. Cash is still a wise investment, Gold is always a great idea with this rag-tag sorry-excuse-for-a-government in charge, keep the new longs and shorts reasonable size-wise, and remember we will have “perfect” setups when the volatility calms down. O’Neil of IBD has said over-and-over that you get only 2-3 real amazing opportunities every 10 years to make big money. When/if this bear trend ends, I am sure one of those opportunities will follow this sad action. I am still very positive, I am happy to see nicer charts, I am content to hold my remaining shorts until they need to be fully covered, and I will continue to keep my eye out on the best opportunities we can have to make money. Aloha!
new short position: TTEK
TTEK is failing right at the 200 day moving average and breaking down below the 50 day moving average, on strong volume. Cut your final loss with a close above the 50 or 200 day moving average, if the stock does not move lower immediately.
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