Market is tanking (Figure 1). Lots of pessimism in the news. Time for me to load on some growth stocks. I'm passing the goldminers in this move as the dollar seem to be rising from the dead and gold may be consolidating.
[caption id="" align="aligncenter" width="570" caption="TSX, 12500 looks like a fine support, doesn't it?"][/caption]
Instead, I'm picking a growth stock, Lululemon (LLL.TO). Lululemon is holding well in this down move. Furthermore, the intraday test of support at 46.50 looks promising as there were few sellers at that price level. The recent break above long-term resistance at 48 is good too. So is the 19.6% short float... Anyway, you get the picture.
[caption id="" align="aligncenter" width="570" caption="Lululemon (LLL.TO)"]1[/caption] Risk is (\$47.04 - \$46.50) * 200 = \$108 + \$9.90 commission = \$117.9 = 1.2% of account. Update: Woodshedder's post today explains his current view of the market, which happens to coincide with mine at this time.