May 22, 2013
Today was an outside reversal day. This means that the market made a new high, then reversed and went lower. This chart pattern generally denotes a top, and leads to lower prices. Today was also a great example of a bearish engulfing pattern that was profiled in the Stocks course. Lower prices are likely.
I exited most of my stock positions that were not part of my core stock and bold positions. The whole market is just getting too speculative.
I sold my 3D Systems (DDD) at 46.61, my remaining Solar City (SCTY) at 44.79 (most of it was sold yesterday at 51.15), and some of my Bank of America (BAC) warrants at 5.83.
SCTY closed the day at 44.30.
I consider DDD a core holding, but I expect I will be able to buy it back much lower than I sold. It was having problems making a new high, which is a warning flag.
I like SCTY for a long-term hold. It should return back to the low 30s, and I will be watching to repurchase it at much lower prices.
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