Stock Newsletter Pt2
Daily Stock Report for Friday Morning, December 18
, 2009 pt2
Summary Opinion The next couple of weeks are vulnerable to a lot of cross currents with fund managers re-arranging their holdings. Consider reducing long holdings for lower risk and look for substantial exposure to long positions in January. This is not a great time to be heavily long but favors short term positions in swing positions. Also be very selective on what you are shorting.
Calendar Tuesday, 830am ET, PPI (Producer Price Index), 0.2%Tuesday, 900am ET, Industrial Production, 0.5%Wednesday, 830am, CPI (Consumer Price Index), 0.4%Wednesday, 830am ET, Crude Oil Inventories Wednesday, 215pm ET, FOMC Interest Rate Decision Thursday, 830am ET, Initial Jobless Claims, 465kThursday, 830am ET, Continuing Claims, 5.435MThursday, 830am ET, Leading Indicators, 0.7%
Follow-up: HPJ, see notes below. FTEK, Fuel Tech. This stock was never added to stock list. If long, today would have been a triggered stop, which is set just below the previously bottom which occurred last week on 12-9-2009 at $8.27.
Focus chart:
HPJ, Hong Kong Highpower bullshort had its third day of a nice correction reaching a low of $6.58 today from a high of $9.07 three days ago. This rebounded sharply at the end of the day today which could be short covering or an attempt by someone or group to start a little buying frenzy. It isnt hard to do with an AMEX listed stock that has only 4.3 million shares in the float. It does look like it could have a rebound to over $8 but it could be used to short this stock again with a lower low to follow in the following week or two.
The first drop like we have seen in the last 3 days is the fastest and easiest money to make in a bullshort but the most is made by repeated shorting, usually in two major drops.
REPEAT: We have seen a series of excellent bullshorts recently and one subscriber emailed and said he tracked our bullshort track record in the last 12-18 months and said we are 97% winning percentage with that technique but dont let that fool you into thinking we will win on the next 97 out of 100. This is a tough business and this technique, as with all trading and investing strategies, should be treated with all due respect. That means: dont get careless, dont build large leveraged positions and start with very small positions at first and then build a full position after signs of it correcting (like yesterday on Tuesday).
Mitch King
www.TradeStocksAmerica.com
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Mitch King is the founder of TradeStocksAmerica.com. All material presented herein is believed to be reliable but we cannot attest to its accuracy. All material represents the opinions of Mitch King. Investment recommendations may change without notice and readers are urged to check with their investment counselors before making any investment decisions. Opinions expressed in these reports may change without prior notice. Mitch King and/or the staff at TradeStocksAmerica.com may or may not have investments in any stocks cited above before or after this newsletter is prepared. Use the stock table above as a model portfolio of ideas that look attractive at the time of the writing. Comments can be hypothetical in nature. Opinions expressed in these reports may change without prior notice. Disclaimer - Stock investing or stock trading has large potential rewards, but also large potential risk. There is risk of loss as well as the opportunity for gain when buying or selling stocks, bonds, option contracts or engaging in any strategy listed in the Daily Stock Report, The Wizard Training Course, The Trading Room and our seminar or workshops. You must be aware of the risks and be willing to accept the risks when investing or trading in any financial markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell stocks. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
by: Mitch King
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