daytrade diaries... february 2, page-11

Morning all,

A very interesting day ahead indeed.. I went with my gut yesterday and bought some stocks which I considered oversold. Yes, it took some kahoonas and yes it was probably against my trading strategy doing this, however I considered the markets oversold in the short term in addition we are right on a very solid support level. If we are going to break through this support level on the XJO, I would think on the first attempt we would at least test it and bounce...If we do however retest this level, I think its then that we need to be very very careful!

Some of the buys included MCR @ $1.395, LNG @ 76c, BHP @ $39.30, AOE @ $3.59 and AGO @ $1.81...

Im certainly not going to be sticking around in many of these holdings for too long as I am very wary right now as to what the medium term direction of the markets is.

Today we should see some short term shorters chasing their tails in a panic to get their positions closed (you know the ones who took a punt shorting BHP yesterday @ $39.50 or so)... When you get in late, it can get dangerous..

Last night the US released some more positive economic data which also contributed to the bounce, inaddition so positive earnings reports..

Here is an interesting article which I posted last night, that I think explains some of the freating that is occuring in the US.

Anyway, its still a time to be careful.. Take profits where and when you can and trade wisely!

Good luck today

Cheers
Kevi