On Thursday 7/5, I covered my QQQ short position for a relatively small gain due to the fact that QQQ wasn’t dropping as fast as I was expecting (showing a lot of unusual strength). Sure enough, come Friday, bears got slaughtered again. I told myself on Thursday that I could short another move higher, which I am considering doing if QQQ retests the highs again.
Since I also exited my SIG short position on Thursday as well, I’m holding all cash now. For some reason, out of the 10-11 months I’ve been trading, Friday was the only day where I held all cash in both my regular trading account and my Roth IRA. Perhaps I’ve been having an urge to always be in at least one trade at any given time.
My top potential picks for going long are MU and INTC, with MU being my heavy favorite. I’m also considering going long on BABA and the SOXX, a semiconductor ETF, which includes MU and INTC. Of course, I’m waiting for another significant dip of >5% on MU and BABA before I would be buying aggressively.
Like I mentioned last week, I think that because the financial sector is struggling to hold the support level, I believe we will likely experience a lot of downside in the coming months in all stocks, not just the financial sector.
I’m looking to buy MU on any big gap down or a drop to the 46-50 support zone. I’m looking to aggressively buy BABA in the mid/high 170s. I will buy INTC on any retest of the previous low near 48.5. There are a few other stocks I’m watching, like TAL and SGH, but these stocks aren’t as liquid and are quite a bit more volatile (which can be good and bad).
TLDR: I plan to reshort QQQ if we retest the highs near 178. I’m looking to buy the above mentioned stocks if they drop in the next few weeks.
Good luck trading, and remember to have fun and stay happy! 🙂