Covestor manager Jesse Barkasy has traded his own accounts for 24 years and has worked as a professional trader for 13 years. He uses technical analysis and looks for breakouts. Barkasy manages Covestor’s Trend Following model, which "uses trend following and chart reading techniques. The model will take big risks investing large portions of capital in some situations."
Barkasy recently purchased China Techfaith Wireless Comm. Tech. Ltd (NASDAQ: CNTF) for the portfolio. We asked him to share his thoughts about the trade. His response:
CNTF began to breakout early in the day (4/29). I saw what appeared to be a 45.7K trade and then an 80.2K trade go off on the 5 minute, 2 day chart. I was hoping to see several more large trades around the 40K+ level but it never happened for the rest of the day. I want to see a continuous surge in volume in certain trades.
This trade in CNTF was one of the trades where I specifically wanted there to be much more than 1 million shares traded by the end of the day. The stock began to sell off only slightly but still I decided that the stock's failure to follow through with significant volume and the volatility of the general market meant that the odds no longer favored me, even though I had only been in the stock intra-day.
There are many moving parts to the way I trade and since the personality of the stock market can change rapidly, a system that has worked for several months may not work for the next short or long term time period. That is my job - to figure out the present personality of the market and what is working in the present time.
CNTF may turn out to make a nice move, however I must take my signals so that I can be in the stocks that have the highest potential of moving in the direction that will hopefully make me the most profit in the shortest amount of time.
Thank you for reading my thoughts,