Wednesday, August 20, 2008

Update

I held onto my position in GS. It has decent volume compared to the last four days. The stochastic is ever so slightly turning upwards. I'd be a little worried if it broke today's lows, unless it gapped down and started to climb. It did close slightly up from yesterday as well. I'd like to say the target price is somewhere between 180 and 190, but I'm thinking something around 170 is more reasonable, especially given the max pain data.

Although I am not trading Apple or Intel, I'd like to continue practicing on them: I would continue to modify their stops as needed. Looks like Apple is gaining some of its strength back. It'd probably be okay to leave the stop at 177 and move it down to 175 should the stock go below that point. With intc I'd probably bump it down to 23.80, although I'm tempted to go with something closer to 23.50. Every stock needs a little breathing room and I'd hate to cover this stock early, as its not showing the signs of strength some of the other stocks I've followed have. If it fails to get above 23.50/.80 tomorrow I'd lower the top again. The MACD fast line is about to cross over, beginning its way toward the center line. If the trade closes out at 23.50, things didn't turn out too poorly. That's a 4.08% gain. If you closed out Apple at 177 you'd get around 1.7%; not quite as good, but decent. If you are able to comfortably move your stop down to 175 tomorrow, you'll be set for a nice ~2.8% gain.

Good trading.
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