Good Afternoon,
If you are a candlestick chart enthusiast, today was an interesting day. Take a look at the following chart.
The formation today is known as a Doji. This marks a period of indecision. Their was no clear winner between the bulls and bears. It can often times mark a reversal of a trend, but that will need to be confirmed with tomorrows trading. If you look to the the April 26 high, the day ended with this same pattern. This pattern was confirmed the following day with a steep decline. Over the next two weeks we experienced an 800 point drop in the markets which included the “flash crash” on May 6th.
On June 5th this same pattern appeared and lent itself to another 400 point drop over the three sessions. We have now had a nice run up since but have formed the patten again with today’s trading. Are these signals always a prognostication of upcoming sell-offs? Not always, but it is always something of which we need to be aware.
ExactStockPicks Portfolio Update
A rather lackluster day in the markets today as evidenced by the close. We did manage to make some money though and that is always a good thing. We had a very strong day with our Thoratec Corp. (THOR) call options which we have been holding. If you recall we shorted 200 shares @ $44, and for protection we purchased 2 June 45 calls. The stock traded up and down and after a few days we decided to cover the stock for a profit of $260 and keep the long calls. Since this trade didn’t initially go our way we decided to make this a “no loss potential” trade. If the calls expired worthless we would have broken even. Fortunately enough we were patient and cashed in on the nice run today on the stock and closed our two calls at $2.75. We bought in at $1.25 so this was a profit of $300. Couple that with the stock play and we made a nice $560 on the deal.
Limit your risk when you put on a trade. You will have ample opportunity and time to make plays!
After this play today our profits are $1563 for the month.
After taking advantage of the long play today we find ourselves still overweighted to the short side. If we are correct and this market reverses, we will be in prime position to take advantage.
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June 2010 Recap
6/1/10: Sold short 100 shares Union Pacific @ $71.96
6/4/10: Bought to cover 100 shares Union Pacific @ $69.68
Protective Call Option: ($41)
Profit – $197
6/2/10: Sold short 200 shares Thoratec Corp @ $44.00
6/4/10: Bought to cover 200 shares Thoratec Corp @ $42.70
Protective Call Option: + $300
Profit – $560
5/27/10: Sold short 200 shares Jinpan Intl Ltd @ $15.83
6/07/10: Bought to cover 200 shares Jinpan Intl Ltd @ $15.14
Profit – $138
5/25/10: Bought 100 shares ConocoPhillips @ $49.00
6/10/10: Sold 100 shares ConocoPhillips @ $52.57
Profit – $357
5/24/10: Bought 100 shares of Baidu@ $72.18
6/10/10: Sold 100 shares of Baidu @ $72.32
Profit – $14
5/20/10: Bought 200 shares Quest Software @ $18.75
6/10/10: Sold 200 shares of Quest Software @ $18.75
Profit – 0
6/7/10: Bought 100 shares Overstock.com @ $19.65
6/11/10: Sold 100 shares Overstock.com @ $21.66
Profit – $201
6/4/10: Bought 100 shares of Valeant Pharmaceuticals Intl.@ $ 46.54
6/14/10: Sold 100 shares of Valeant Pharmaceuticals Intl.@ $47.50
Profit – $96
Total June Profit to Date: $1563
TEN Exclusive: Portfolio Update – 6/16/10 is an article from: 
