ChartSmarter Thursday Game Plan 12/4/14

Markets continued on their relentless upward journey Wednesday with both the Nasdaq and S&P 500 rising .4% and closing right near session highs. We left some money on the table and made the mistake of not letting the stops do what they are designed to do. Take the emotion out of the equation. The cliche that markets can remain irrational a lot longer then you can remain solvent comes to mind. Price is imperative and shame on us for not waiting for the technical sign to get out. The RSI, MACD, volume divergences, etc. are all important but viewed as minor importance compared to actual price action. We were a bit concerned over the action of some of the leading stocks and a few we mentioned yesterday reported earnings and recorded stellar gains. Money was made on all the positions we had, but the process is what should be valued much more. Great traders are not obsessed with their P&L, but more so refining their strategies for consistent long term success. We did not play any of these names, we were just analyzing the action. Chip maker AMBA, whose chips go into the GPRO products rose also 6% today, and retail play GIII screamed to an all time high today rising 14.7% and now just below the very round par figure. Lesson learned, as most best ones are through experience, and time to move on to the next opportunity with a clear head.