Another anecdotal indicator is as follows: I just had a tech related construction job interview yesterday, they emailed within a few hours that they want a second interview tomorrow for a senior level estimator position. They said they are in a slow few months but then biz is going to take off. I assume they know better than anyone. Time will tell and the tape will tell. The market sends cards out of the deck on a daily basis. We just observe and react, not predict. If you dare to step into some of these names, heed this warning. Writing this down helps me keep my head on straight with this crazy action.
1) Try to buy a 10%-15%pull back or break out to new highs
2) Use a mandatory 8% stop loss for the weekly timeframe, 12% for monthly time frame and around 3%-5% for the daily timeframe. That will keep you in the game to fight the next time.
3) Don’t get greedy. The pigs always get slaughtered. Sell half as soon as you get the feeling that you want “more” or you are up 1-3 bucks and move your stop to break even on the other half.
4) Don’t let a loss get to you or force to take an oversized position. I may put around 12%-15% in each position.
5) You only need a few of these to make some big ka-chinga dough.
6) These could top out tomorrow, next month or next year. No one knows when so be ready.