Wednesday, July 8, 2009

Bookkeeping: Stopped out of some Quality Systems (QSII) and (PCLN)

Getting stopped out of many things today; the HDFC Bank (HDB) I tried to buy this morning, was stopped out very quickly. But it is already back over $90 and HDB generally does not have a ton of volume, so can be moved in large % by not that many dollars.

I was stopped out of a good portion of my Quality Systems (QSII) as it broke the 50 day moving average intraday - we kept a 0.7% stake. Still like this chart if it can quickly reverse but I'd like to see it north of $53.

I was stopped out of (PCLN) as it broke the 50 day moving average intraday - leaving us a 0.2% stake. I am more worried about this set up - it just looks more of a rollover candidate in the intermediate term.

I have a feel all these positions might reverse themselves back up if the market cooperates.

These are all mechanical trades, meaning I put the stop loss level in below a key resistance, and away it goes. Sentiment wise I feel more bullish in the very near term as a whole slew of stop losses have been washed out today as the S&P broke 880 and 875. If you look at a lot of individual stocks intraday you can see they swoon down when the S&P broke both those levels. Which shows you again, what you own means very little nowadays - we're all hostage to machines and the program trades swoop out of everything at the same time in parallel with the overall indexes. It really is such a sea change from even 3 years ago - this is why I keep repeating it.

How today ends will dictate the next few sessions I believe; recapturing S&P 880 by the close would be a huge win for the bulls. A close below 875, bears will be happy. I'm trying to get short term bullish here and throw off my yellow weed persona but the market is not cooperating and for every purchase I make, I get stopped out of something else.

Long all names mentioned in fund; no personal positions

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