Tuesday, August 9, 2011
Unfortunately for me of course, I sold one of my mutual funds yesterday and so missed this furious rally. While that fund made up less than 5 pct of my portfolio, I am still kicking myself today for selling into the panic. While panic wasn't the sole reason why I sold the fund(the new transaction fees were) had I waited one day, I could have at least locked in a profit on the position instead of a loss.
This was the type of powerful rally that usually has some follow through so I went ahead and added some to my long term mutual funds and initiated a position in AAPL today in my trading acount. My plan for AAPL is to use a pyramid up strategy. I bought one bucket today and if it goes up 5-7%, I will buy more. I will not buy more if the price drops from here. I will only buy if it goes up. I set my stop loss just below today's low around 350. I am looking for the SNP to rise to perhaps 1250-1270 based on today's huge reversal. However, at that point there should be some more selling pressure at the 200 day moving average. I anticipate we will be range bound for awhile until we can get some better economic data that does not confirm a recession.