$DIS Do your homework!

- On Tuesday DIS broke out impressively. I refrained from shorting it ; it ended the day at 39.00 .
Then in after-hours bids showed up at 39.30 and i could not stop myself from shorting some.

- The yesterday morning the reason for the after-hour strength became clear ; Goldman was putting DIS in the buy conviction list. Fortunatly the pre- ADP number market was weak abnd I covered at 39.14 . I reckoned the Goldman upgrade meant it could easily outperform the market by around 2%.

- As it climbed up during the day I thought that with the breakout on tuesday and Goldman´s upgrade a lot of good news was out and started shorting throughout the day. Average price 39.81 and holding.

-Thoughts: I might make money or not in this trade. But looking at the chart it is obvious I missed the easy trade...which was to go long the breakout. Reason i did not is by the time it caught my eye it was up 2 or 3%  already. This means I DID NOT DO MY HOMEWORK. Always have a list of stocks which have the potential for breaking out due to being close to monthly/weekly highs and put them in your watchlist. DO YOUR HOMEWORK.

$APC Break even. Good Risk Management.

- APC started off well enough as per my thesis for entering the trade yesterday http://jpotrading.blogspot.com/2011/01/apc-second-chance-at-shorting-study.html .

-So much so that as it fell further I shorted some more at 74.66 (9:55) .

-But it was not meant to be and general market recovery and a pop in oil meant my stop was trigerred at 75.42 just above what had been the day´s high.

-Thoughts: good risk management. It was painfull to see the profits evaporate and tempting to give it more room, but my thesis from yesterday was it should tank , and  by taking out the day´s high in mid morning iy invalidated my "thesis".