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Monday, January 24, 2011

crazy giddy

I'm really giddy, but in a way that is making me cautious. I have been dead-on over that past couple of months, with the exception of RHT, my level of appreciation is going to cause me to re-assess all my positions to ensure I am not letting my giddiness get the best of me. (Even though a thoroughly assess my trades prior to making them w/an entering and exiting strategy. I will refer to the directly-below post about Apple as an example.)

IBM is just kicking ass, and I think that is what has me on edge. I am dealing with an internal struggle: fundamentals vs. technicals. IBM's set up makes me want to ease up. I rarely hold names in such overbought positions for so long, but my fundamental thesis justifies it.

I am throwing my giddiness in my own face to test my discipline. I have seen significant appreciation, and the technicals merit taking profits, although I still very much believe in the fundamental story. Keep in mind, my discipline would have normally forced me to sell IBM 5 points ago due to the technical set up. But the fundamental story allowed me to push the envelope.

I took a lot of profits in IBM due to the over reaching technicals, but I am still exposed in case it keeps riding upward to 165. Another thing to keep in mind, any pull back, any weakness (even if it is just intra-day weakness) in IBM, I will add back some of what I sold today. (It is in bull mode, and the pull backs should be shallow.)

Also, I repositioned a bit today...

RHT - Took my losses in RHT.

PBR - Added to my position.

1 comment:

  1. To paraphrase an old basketball expression, you my friend, are in the fuckin' ZONE!

    Regards, Dan

    ReplyDelete