Thursday, May 19, 2005

A bull campaign begins

Yesterday the qqqq and naz comp both made an intermediate "higher high", which was the last signal I was waiting for to cover my QQQQ short position. The rest of my shorts have stopped out, I've only got 1 short position left. On the other side of the table, I have been accumulating long positions left and right over the past week. I've been trading much more actively lately, but that is about to slow down. The reason is that when the market is so close to confirming a movement in either direction, your risk is unusually low to be taking on any new positions whatsoever because the market will quickly tell you whether you were right or not to take the position.

So I wanted to post about my current long positions because my original intentions for this blog were for timely discussion of highly speculative (and lucrative) issues, and to keep a trading journal. I don't like talking about shorts, but now that I'm net long again I will probably be making a lot more posts about individual stocks. All of the following positions were accumulated over the last couple weeks at times when I felt that the risk was about as low as it could get. It is a good idea to view the chart of each of these stocks with its 10 and 50 day simple moving averages to see why I bought.

SybmolEntryDateAvg costNotes
ARRS5-6-05$7.51I really liked the base that ARRS broke out from so I bought some on a pullback to its 10-day moving average.
NSI5-12-05$10.76I had originally purchased NSI at $6.85 but sold on 5-11-05 at $11.33 because it kept rising on very thin volume. Well it fell after I sold alright, but the volume was even lighter! so I bought NSI back when it held its 10-day moving average.
FORD5-16-05$16.95Currently the biggest winner of the batch. I bougth at the open at $16.50 and added to my position at the close at $17.84.
MSO5-16-05$25.89I caught the very beginning of the break-out from a bull flag that formed after a short-squeeze, but the stock has lots of overhead resistance. I will be closing this position out at the first sign of trouble.
SIRI5-16-05$5.46The sellers have really dried up SIRI and it looks like there has been some recent accumulation judging by the recent saucer shapes on its daily chart. I was anticipating a short-squeeze/breakout from its upper-channel line but that hasn't happened yet. I may cut the position in half or wait on the sidelines if it drops much further.
SPTN5-16-05$12.11I love the really tight price action in SPTN, but it does have occasional candle whicks that clear the stops out. Some old man is trying to buy all the stock so he can control the company, but lots of people like me are making it expensive for him. This stock could run away from these big bidders if the market catches on fire.
IRIS5-18-05$16.94Iris actually fell below its 10-day moving average for a couple of days before I bought it, but the volume was very light so I bought when it was clear that it was moving back above the 10-day moving average.
TZIX5-18-05$12.51I bought a bull flag sitting high above one of the most beautiful bases I've ever seen. There have a been a lot of these triple-cup looking bases lately (ARRS, SIRI), which is part of the reason I've been a pretty aggressive buyer over the past couple of weeks.

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