I was very negative about GMCR but they beat earning and were up 40%. Personally I think it's more a function of a short squeeze, not GMCR being worth that much. But only price pays. Disappointing but not a big loss since I had a reasonable position size and had puts.
I've come to an important realization about trading. Technical analysis isn't about predicting future price action. I can't know what price is going to do and I don't have any control over it. The only thing I control is my level of risk. Technical analysis is about finding opportunities in the market where reward outweighs risk.
Friday, May 1, 2009
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