Weekly Recap

I really did have a great week going until the last 45 minutes of Friday. Too bad, but that is what happens when you are a little extended (like I was). When the shorts didn't cover, the market freaked out a little. The bulls, however, were able to protect key support levels, but just barely. I expect a further sell-off at open on Monday, followed by a snap back rally. After that, well, who really knows.

The retail sector has been getting killed (only the financials could arguably have been worse). That is why keeping UA in the portfolio this week didn't make sense (it also lost technical support). When some positive news in market happens and retailers can get out of the bunker, then I will probably buy it back.

The same goes for GS in the financial sector. I am looking to nibble there at around $215, but the market tape needs to also make sense.

The same goes for SIRO, which I sold on Friday. Baird gave SIRO a downgrade on Friday to add to the tough tape. It quickly blew through support and I wanted to lock-in profits (I also wanted to raise cash) instead of fighting the price pressure. The downgrade was basically bogus in my opinion. The analyst cited the potential for competition for their hot Galileos imaging system. Well, dah, that is why most investors have bought SIRO! The lack of current competition is why the company can sell these units for $180 K each. It takes years to develop this technology, so the analyst is worried about 2010? Give me a break; the technology will have changed by then. I will also buy back SIRO when it finds support.

I am now overweight PCP. I didn't mean to do that, but the fact that it held up really well on Friday suggests to me that investors expect good earnings. I am therefore planning to roll the dice on Tuesday with earnings unless Monday gives me a huge chance to reduce.

GRMN and AAPL also held up well and I expect AAPL's Monday evening earnings release to potentially turn around technology stocks and drive them still higher.

ROCM is still in its holding pattern, only down $0.01 during Friday's sell-off. This stock is still in a screaming Bull Flag pattern and any positive news will let this coil unwind.

During the next upcoming week, I am expecting to be able to lighten up AAPL and PCP and set up a short (put option) position on TIE. I will certainly be posting on conference calls from ATI, AAPL and PCP this week.