In Closing...

This blog has been quite fun to write. And big props to everyone who read, commented and shared the word. Going forward, please visit http://stockideas.org for future blogs! Thanks again, J

Semi-Good Day

I am long some $TQNT from 6.74. It was a bad entry. I didn't write about it. But I tweeted here. I am trying to tweet more of this stuff. Sorry to those of my friends who are confused as to what is going on. But it gets me more followers, than my witty remarks, much to my chagrin. And that's really why we're all here. Not really.

It's held up way today in a choppy market. I'm happy about it. I took a minor hit on CIEN and still have a minor position. I just want broad semi-conductor exposure. That's why I diversified a little.

I think we end up. But I say all kinds of things. You should not listen to it.

Head in the Clouds

I like RAX here. It's at the bottom of it's range. It definitely could get boot stomped. But then I'll buy it again at 12. I like it here and down to 12, so long as the fundamentals don't change.

The writing is on the wall, in terms of cloud-computing taking over the world. While I will only dedicate a standard maximum position size of 10% to RAX, I will use up to 20% of my portfolio to exploit cloud computing (SaaS, IaaS) trends and 10% for 4G flays, as per monsieur Le Fly.


I'm not buying anything here, as I already have an 80% position in and around these levels. I will only add if it goes lower. If I were more risk-averse or believed any less in my thesis I would hold a tight stop in case it got beat the hell down at this support.

I'm not recommending that you buy RAX

Metldeezy

I sold out of 3/4 of my CIEN position for a 1.5% loss. Negligible. It just ran hard though and could sell off further should weakness persist.

I think there is going to be a correction and then blammo upwards for August.

I also bought 1/2 a position of VXX

Boredom

It's a dangerous thing.

My plan is to accumulate on weakness and that's what I need to do. But then I get bored.

Yesterday I bought a 1/4 position of FAS at the closing bell. It was a gamble on the JPM earnings play, which they destroyed by the way. But it was dumb. I didn't really think about it. I did it because I was bored and undisciplined.

I managed to get out for a small gain that did little more than cover my fees. I was lucky though. The market was obviously flooded with sell orders on the open. I could have got had, badly.

Stick to the plan. Accumulate on weakness.

Add on Weakness

As per my thesis, it's time to buy some shit.

I have an incredibly large cash positions for such shopping opportunities.

Let's be honest for a second, it's RATHER unlikely that the new iPhone will be recalled. The solution of a free case that fixes the signal to everyone is a good play. People will probably buy like 4 cases over the life of their iPhone. Shit, this will probably improve margins. Steve Jobs is one hell of a crafty bastard, after all.

I gotta love AAPL at this price. Target of $330.

Hat tip to @vcutrader for spurring me on a little in this nibble.

NOTE: The bulk of my AAPL position was purchased in and around $187

The Shake-Out.

Here is where I got hosed.

Actually, because of my phenomenal patience, I managed to cover my bases. I will sell this small $SPY position at the open for a tidy, albeit modest profit.

I'm testing this new thing, where I buy when the number gets yellow, as it does in the teens. I bought at 13.5. Assuming, as per the earlier yellow numbers, that it would bounce.

It didn't bounce.

I think there was a tell, that this was a shake-out. That this was not a real bottom. The fact that it was in the middle of our trading range should have been a tell. There was another one too, to do with the next day's score. But I was excited to test out something new so I jumped eagerly at any apparent opportunity.

Luckily, I didn't jump in too deep. I was only testing an idea, after all.

And I was sure to test again when the number got back into the teens, which did prove to be a short-term bottom.

Now I've got a few more days of ammo for my indicator. I'm going to try and work it in with some other things in order to produce a reliable buy signal. 3 out of 4 ain't terrible but I think I can do better. I just need to keep accumulating data. When I start a hedge-fund, I'll let you know (LOL).

On that note, I hate the use of LOLs and such. On another note, I obviously have no clue what I'm doing vis-a-vis the stock market, so don't take this shit for real. Do your due diligence, d'uh.

I'm still going to accumulate stocks I like, with solid fundamentals on weakness. I am just using some of my bountiful cash position to play these swings up and down the trading range.