Today's story was mostly the technology sector. The bulls are still showing strength and I will stick to those bullish trades until I see stronger signs of any significant pull back or trend reversal. Buy some time on your new option trades. I would try to buy out at least 60-90 days unless the options are too expensive. Sometimes the trades don't always move in the direction we expect...or within the time we expect... when we get into our trades. This is why we focus on following the trend of the stock. If the trend changes, then we want to get out or cut a loss. This is particularly important during earnings season. A stock might sell off on good news. This doesn't necessarily mean that the trend has been broken. It could sell off a bit, then rally to new highs a few days later. As long as the stock hasn't broken the trend (usually the 50 day moving average or another key support/resistance area), you should probably stick to the trade. Most of the same stocks we have been following are still showing up on my scans. Some new ones would include KSS, IBM, and ORCL. Keep an eye on Citigroup tomorrow as they report their earnings. I think they will give us a better signal as to how much the financial sector is improving. They were on their death bed a few weeks ago. If they show that things are getting better, we could see a strong move from the market...not to mention a major short squeeze. Check out some of the recommended stocks in the Virtual Investing Club website portfolio (www.virtualinvestingclub.com). These stocks have been performing very nicely over the last few months. Since the philosophy of those picks is built around bottoming stocks with huge upside potential, there could be some nice long term gains if the market continues to recover. These need to be stock trades rather than option trades due to their long term nature. E-mail me at jerry@myoptionmagic.com for questions about a free trial to that website.
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