Stock Trading Plan for July 9, 2007
Last week I just took a look at the badly performing industries and surprise surprise there has been such a nice downside momentum around that its unbelievable. In the last 3-4 months I was so focused on longs in the bull market that I had lost sight that I do short trading too. In strongly uptrending market it made sense to look only at longs, but then in a faltering market close to being purely range bound, it does make sense to look at both sides of the market. Now I have so many shorts on my hands that I have no idea how to prune down the list. So, I am going to paper trade the whole load to generate trade statistics to be analyzed.
But then Nasdaq is diverging from the other indices that it might just throw a wrench in my downside momentum party. Let’s see how it goes, but I will go along with these shorts in paper trading until the market takes on strong upside momentum, which it is lacking at the moment.
