Seanote, You make an important point re broken stocks. If there is one piece of advice that will save a newbie investor/swing player money, that is it. You can bet heavily promoted stocks like WCOM have many institutional holders who are stuck and will dump into any rally.
Obviously this trade isn't an exact long straddle due to different strike prices, but I have calculated my risk/reward points and want to see how this strategy pans out.
TODAYS EXECUTIONS: 15:58:36 .SJXQL SLD 1 44.5 10:14:39 .SJXEH BOT 5 18.8 09:52:44 AMGN SHRT 2000 51.39 OPEN POSITIONS: LONG .SJXQL 7 17.00 +25.40 LONG YHOO 2000 14.32 +0.44 SHORT VZ 2000 40.23 +0.12 LONG PALM 5000 3.63 -0.47 SHORT AMGN 2000 51.39 -1.45 LONG DIS 2000 24.86 -1.86 LONG .SJXEH 5 18.80 -3.40 CLOSED P&L: $2,750 OPEN P&L: $8,310 TOTAL CLOSED P&L: $53,016 (since 3-6-02) YTD: $159,332
IMO- This decline has yet to reach deep oversold conditions so I'm treating yesterday's rally with suspicion. The big indices tested short term resistance but backed off towards the afternoon. Yesterday was the dead cat bounce that I mentioned so I'm still looking predominantly short. Other than PALM, I have tight stops on my long positions. HD - Short CREE - Short
This thead is getting pretty long. Maybe it would be a good idea to start a new thread: MAY Intraday/Swing Plays. Just an idea.
I just realized today is May 1st which is when I planned on starting the new thread. I'm going to name it "Trading Journal - May" Thanks.