The past few months have been challenging and, most of the time, discouraging. I think this is the first time I didn't post anything for a week (not counting the times I was out on an actual vacation). :P This market made me doubt everything, even Price. What is the first tenet of Technical Analysis? Price discounts everything or Price is King. The second I doubted it, I was doomed to fail. Sabi nga sa story-less Sucker Punch, "If you don't stand for anything, you will fall for anything." I lost conviction because of our choppy market. I should have known when to stop right? Well, actually, I did! I stopped trading before, remember? I just resumed trading too soon. Oh well, who would have thought determination and perseverance would be such a bad thing?! Hahaha! I'm just kidding. Anyway, this is me, again, trying.
The past few weeks, I've been trying to position trade. Short-term trading seemed like it wasn't working anymore so I tried something else. A realization hit me the other day. I no longer know how to position! It makes me uncomfortable. What have I turned into?? Haha! So, I decided to clean my portfolio and start again. It's not yet stark clean but I'm getting there. Yesterday, I received a ray of light in the form of DGTL. Today, it was CYBR. Similar chart setups may be found in recent plays like MER and JGS. I think they have the same setup from the previously hot stocks, AP, LPZ, DMC, to name a few. My mistake before was trying to anticipate which stocks will breakout based on a promising bottoming out formations. I can't spot cycles anymore. The laggard doesn't always follow the leader. Is it just me? I feel like the market is moving randomly. It's flaky too. So, my game plan now is to take note of stocks that look like they are bottoming out and buy on breakout momentum (I got my eye on AP and FPH). This kind of strategy ought to have worked well with PNB today, and apparently, it also did on CYBR. Since it's also a bit momentum-ish, my holding period remains short: 1 to 3 days on stocks like CYBR, then a bit longer on slower and less volatile stocks like EDC, DMC, PNB, for example. This strategy has one limitation/flaw. It's a momentum based strategy. I noticed, the selective plays are back. I just need to FOCUS and have FAITH. If all things fail, I'll have my parachute prepared. :))
|Yes, I love Calvin and Hobbes! :)|
The information contained in this blog are my own opinions and analyses, provided for information purposes only and should not be construed as an offer to buy or sell securities.