DRI

I'm short DRI which is currently up around 11% on really aggressive buying. At first I was sort of angry and was thinking about covering the position. But I relaxed a little and thought it over. Instead of looking at a short-term chart, I looked at the bigger picture.

After looking at a long-term chart I've decided my trade idea is still intact, but that I'm taking a little pain. If it gets up to 29 or 30 I'll get out.

One thing I noticed is that the 200DMA seemed a little fast, and a 300DMA was often support or resistance. DRI broke a long term trendline and is in a downtrend below it's 200 and 300 MAs. The stock is in a bit of a downward channel and seems to be nearing the top of that range. The top of that range seems to coincide with the 200 and 300 MAs which are very close together.

One of the things I've learned from trading is focusing on strengths. Currently I consider my skills in technical analysis much better than those in trading. Because of this I'm focusing more on long-term trading that relies more on technical analysis than trading ability. I'm always going to working on improving my trading ability, but I'll do that with fake money.


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