Market Notes:
The markets are grinding higher this morning after a light sell-off yesterday. It was the perfect opportunity to add to my TNA swing.
But not every trade is working out … My CHWY calls were a disaster. The lesson here? Manage your risk, you can be wrong about any one position. Trading isn’t about being right. Trading is about surviving long enough to be right. Hence my tweet:
“The ability to stick around for a long time, without wiping out or being forced to give up, is what makes the biggest difference.”
— Trading for Keeps (@tradingforkeeps) December 9, 2021
– Morgan Housel#riskmanagement is the key my friends!
While the indexes enjoy nearly record-high levels, 58% of stocks are still trading below their 200-day moving average … That’s bearish!
I believe it’s a stock pickers market right now. There are opportunities but the pickings are slim. I did open up a position in SEV yesterday. This electric vehicle company IPOed a few weeks back and fell hard. It appears to have found support at $12. I’m long from $14, the risk level is $12, price target $30+.
Crypto … It’s disappointing. I’m HODLing my positions and still believe in Bitcoin’s long-term prospects … But the chart doesn’t lie and the price is below the 200-day moving average. Once again … That’s bearish.
I’m risk on as the market is still in rally mode. But I’m being very selective and quickly admitting when I’m wrong.
Watchlist:
*ISIG is on watch
*CNTX watching for a setup above $8
*EFOI watching for a setup above $5
*QTT on watch after a reverse split
CFVI has resistance at $15
PLAB has support at $17