Day summary

Markets have shrugged off yesterdays reversal by opening lower and climbing all day long. We have an all important job number coming up tomorrow morning and that will set the tone for Friday. I would not take any position today and will remain flat untill we see some more clarity in markets. Remember the major trend is down and we are in a bear market and bear market rallies are very brutal and we dont want to be caught on the wrongside of the markets.
QQQQ is still struggling at its 11 day ema and DIA, SPY and IWM are struggling at their 25 ema.

Early this morning both QID and FXY gapped open today so We didnt trade them because at that time there was good chance of gap fill and loss of early momentum. And thats what happened and markets kept on rallying the entire day. RIGL continued its move up but unfortunately without us.

Day summary

We close RIGL today at 26.4 when the trend line established for last 4 days was breached. Another factor which weighed in was that after a huge run up initially in markets from fed decision, they all reversed and closed in red so we may be up for a new leg down in markets.
I will be looking for an entry in QID tomorrow if it takes out toady's high. I will also be looking an entry in FXY as I think Japanese Yen may be ready to run again.
The reversal in broader markets from their 25 Ema was a cause of worry and could put a downward pressure tomorrow particularly QQQQ which got rejected by its 11 day Ema today.

Total profit in RIGL .53/25.78 = 2.05%

Stock pick for the week of 01/28/08

RIGL.

RIGL is holding very nicely in these troubled times. I expect broader markets to go sideways for a while now and that may remove any downward pressure on RIGL. RIGL seems to be retesting its 25 day Ema and Fridays action was very bullish considering the broader markets. I will take a stop entry on this above Fridays high and my stop below Fridays low. Target is just below previous resistance.

Entry 25.78 (Stop Entry)

Stop 24.74
First target 26.23

Second target 28.98

We entered RIGL on Monday and same day our first target was hit.

Next day We moved our stop on rest of the position to the low of Monday i.e 25.55. Now we have a zero risk trade or what I call a free trade.

1/30/08 Today could be a volatile day with Fed decision pending so I have decided to move my stop 26.96 in case markets sell off and so do RIGL with them.

Trading philosophy

I concentrate on short term trading with my trades ranging from few minutes to few days. I am a technical trader and I follow trend playing methodologies with few of my own defined patterns .
I strongly believe that trading is 20% prognostication and 80% execution. The most important part of trader's execution is his own psychology. A trader with right attitude towards trading and mediocre methods of analysis is far better than a trader with best analytical skills and wrong trading psychology.


Disclaimer: Trading presensts siginificant risk and one should trade according to his financial situation and risk appetite and should be responsible for his own trading decisions.