http://www.stockrake.com

First, I got out of the last of my index shorts this morning, and then put them back on at the close. Reason:
Gapped up doji on NDX with an overbought condition. C’mon now. Under any other circumstance, this would be a huge shorting opportunity for 1-2 day trade.

Despite me trying to catch a very short term down draft, I want to get VERY VERY LONG. Especially things that haven’t moved large yet. There are plenty of these opportunities.

One example:

I like the setups in HAL, POT, BP, SBS, TNE, USO, and a slew of other Gold and Oil plays.

I bought today:
HAL, BP (added), SBS, TNE, USO (July 42 calls). However, I also bought these small/micro cap stocks:
NENG, FSII, ASTC, INSM, PXLW, SCLN, TSEM

Reason: This portfolio of stocks I should have bought a few weeks ago per one of my many “systems”, but for whatever reason, I didn’t. I’m playing catchup and the portfolio was only up about 12% in the past 3-4 weeks. I say only, because for this particular system that is really on the low side of what these mini-portfolio’s usually return in a good trend.

I sold my ERX today taking profits, but will getting right back into it.

Despite these buys, I want to buy more stocks, however, I hedged significantly before the close with SQQQ (Triple short QQQQ), and 2x inverse funds, primarily NDX, but also SPX, RUT.

Why its worth a shot for a short for one day?
The gapped up doji on the NDX.
The RSI divergence on the daily chart.
Extreme RSI readings as well as stochastics.

These items have been reason enough in the past. The ingredients are there for a down day. Again, I’m not a permabear by trying to catch a down day. I have no delusions of grandeur thinking the Dow is going to 900.
I want to be more long, just don’t want to buy it all up here.