[caption id="attachment_375" align="aligncenter" width="500" caption="CAF, DELL, ESLR, SLW"][/caption]
It's time to review my positions as promised last week. After the record up day on Monday and then the lackluster follow-through Tuesday, today is probably going to be a down day in the markets. Given my intermediate term outlook, I am inclined to hold my positions. However, I need to unload my weakest link to reduce my risk.
Above is a quick snapshot of my current holdings.
Notice that DELL and ESLR are holding on nicely on this down (DJX -3.18%, SPX -3.57% as of this writing) day after the previous spike. This is a very good sign indeed as it shows they're likly to hold on to the previous \~20% gain, at least for now.
Actually, the price action of ESLR seem very healthy in particular. There's been a couple of big volume spikes in late day trading. Although it does seem to be in a constant downtrend, as you can see from its chart.
As for CAF and SLW they are both below support at the moment. CAF has broken its \$25 support last Friday and is trading below it at the moment. SLW is definitely the weakest at the moment. If it isn't such a cash cow, I would probably be selling it in yesterday's rally. Furthermore, it still seems to be holding on to its decending support line on the daily chart today.
[caption id="attachment_377" align="aligncenter" width="500" caption="SLW"][/caption]
At this point, the question I ask myself is, if I'm in all cash now, would I be buying these companies at this point? CAF - yes, DELL - yes, ESLR - yes, SLW - yes. Is this the bottom? I don't know. I'll just have to wait and see. However, I will watch the day-to-day action of my holdings carefully and unload one of two of them to reduce my risk.
: http://traderpau.files.wordpress.com/2008/10/2008-10-15-holdings.png : http://traderpau.files.wordpress.com/2008/10/2008-10-15-slw.png