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Market Recap and Trading Plan


Wednesday, January 6, 2010
Market Recap and Trading Plan
Bottom line: flat markets today...a good thing.

Remember Monday? Seems like a long time ago. We needed some consolidation after a powerful move in the NASDAQ, S&P 500 and the Dow on Monday. But we didn't sell off, we kept our profits (and most people kept their profits...we kept a lot more as we're killing the indexes because of our 2010 Outlook..see related article).

Money flowed out of tech into materials and energy. We kept our tech that is working and pared back the stuff that was faltering. Can always buy it back after it rests.

Coal, metals, infra, industrials, ag...all good. Our strong positions covered these like a blanket: ANR, CLF, TIE, MOS, FWLT, NE, TCK, BUCY (see that come back after the dip?...had to scramble, telling that that was all the dip we got). That is a powerhouse portfolio for where this market is headed. CHK was weak, down .33 after a very strong move. Again, good consolidation. We have a half position, may pull back a little more..but maybe not in this bull market. Will add if starts to move again.

Tech: weak, but SNDK and RVBD were monsters. MRVL was solid,  some were resting - SBAC, AMSC, the rest a little weak: STX, NTAP (just starting).

We also hold IMAX - this is going higher. Been adding slowly since this is  way up...but no signs of weakness. This may become a money managers' fav after the Avatar sales and the 3D HD buzz at the Electronics show.

Started HIG yesterday on the dip, added more this am on the dip...huge move.

The plan: more of the same. We're up 6% in 3 days. Raised some cash at end of day. Friday we have the employment report. If we're up tomorrow, may get a little sell the news, so will raise up to 25% cash tomorrow, keep tight stops and see. Might even get up to 33% cash, will let you know during the day depending on how things go.
Posted by Don't Take Losses at 9:50 PM

Disclosure: Long all stocks mentioned.