The Wrap 7/28/10

{+++}Another tight range chop fest that resulted in a hard sell off, although we recovered just a bit into the close as the ETF phenomenon kicked in. What is that? It’s when investors (mostly black boxes) start buying or selling many of the 3x ETF’s. Just look at the last 10 minute volume bar of the day on TZA and TNA, it’s been happening a lot lately. CoupleD with a light volume market, things can really get pushed around.

Sectors in positive territory include Auto Parts (+3.1%), hotels (+1.6%), Drug Retail (+1.6%), while sectors in the red include Photo Products (-15.3%), Casinos and Gaming (-4.3%), Paper products (-4.0%), Building Products (-4.0%), Homebuilding (-3.8%).

We got stopped on WPRT today (even after I lowered the stop a bit). I am smitten with the name but the technicals went sour today and the daily chart isn’t as pretty as it was yesterday.

Today was the most frustrating day I had in a very long time. I don’t mind losses at all. I stayed around a little too long on a few things and it resulted in giving back some beautiful gains. It happens to us all, but it really ticked me off. I speak of BVF which was my biggest position going in to today. I did everything right since I’ve been long the last few days, buying dips at the right time etc, but when I had my chance to give it a knock out punch THIS MORNING I hung around a bit too long. No worries, I still love the pattern and the stock acted well today on a relative basis. As you know I always sell half positions, for you guys too, as it is a fantastic discipline and habit to adhere to. I missed my own memo today.

Jesse Livermore said this on the topic:

Losing money is the least of my troubles.  A loss never troubles me after I take it.  I forget it overnight.  But being wrong – not taking the loss – that is what does the damage to the pocket book and to the soul.

I’m also ticked off because I’ve owned GENZ since Friday, sold it today, and about ten minutes after I sold, the Wall Street Journal reported, that Sanofi will pay up to $75 and now GENZ is listening. The stock ran with out me. There will probably be a bidding war now and the stock will go to $80. LMAO. Hey that’s the market and it happens to all of us. I’m in my attic planning my revenge as I write.

Tomorrow morning, two economic reports are scheduled to be released before the open including: Initial claims (consensus 464K) and 2) continuing claims (consensus 4550K).

Tomorrow before the open, of the many companies scheduled to report, some of the bigger names include: ADP, AVP, ABX, BDX, BBW, BG, CELG, CKP, CME, CL, XRAY, DBD, DPS, EGO, XOM, BEN, GR, GT, K, MJN, MDP, MOT, NOC, POT, RSH, RTN, REV, RDS.A, SNE, LUV, STRA, TYC, WM, and WYNN.

I have moved stops around on almost all our open positions so PLEASE check the P&L tab on the blog. I’ve isolated some pretty ugly short set ups just in case this market decides that it’s had its fun. See you tomorrow.

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