There was almost no resistance from the bears today. The market moved up. I tried to help them by shorting a few stocks. But all of them died as you can see from my portfolio . My only swing trade MOS behaved as expected in a strong market. It went up and hit my target. The exit was very clean. In other words, I never hesitated. Yeah there might be some more legs up. But I do not care anymore.
MOS and POT have been extremely strong lately as we can see from the charts. Most other stocks had a pull-back before today. If you look at their candle sticks today, they finished at the high of the day. In other words, there is no weakness yet. They are in a beautiful uptrend. If you have profitable positions, hold onto them. If you do not have any long positions in it, do not chase it. The train has left the station. If you chase it, you will likely take it on your chin. From this point on, no one knows how much buying power is left for these 2 guys in the short term. They might move up a little more or have a quick pull back.
Stocks always pull back. Most of them do at least. Good swing long/short opportunities with best risk/reward ratio are few. If you can catch 1 or 2 every month, you should pat yourself on the back. As you can see from my MOS trade, I had such a tiny position. Yet the return is very solid. What if I had 1500 shares? Then I could have made over 10k and then I could stop trading for the month right?
The first bar out of a consolidation area is the best bar to buy/short a position.
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