Wednesday, August 31, 2005

I'm buying strength here

There quite a few compelling looking charts popping up on my market homework software tonite. I've found that you can make a lot of money in a short time by not ignoring when the market is flashing strength like it did today and there are plenty of good setups to choose from. Whenever there is news that credit is loosening, the speculative money goes to work, even if just for a short time. The feel of the market right now reminds me of earlier this year right before we got a quick breakout caused by news of a new 30-year long bond being issued in the near future. This time it is the hurricane relief money that is the catalyst. I'll probably be doing some buying to cover and buying longs tomorrow, but I don't anticipate a market advance lasting very long with the bond market acting the way it has been; the yield curve is rapidly narrowing these days.

Here are the highlights from my software scan for low-risk buying opportunities tonite:



Another one worth mentioning showed up on my scan a week or two ago that had a positive reversal today is GIGA. I've got a small position in it already, and if it picks up strength and volume I'll probably add to it. You've got to take profits fairly quickly in stuff like that though, and that's what I plan to do.

I've still got my DSTI position from about 3 weeks ago and I'm glad I do. It looks like it has good support around $13 (about where I got in) and may see a short squeeze if the market is able to advance.

Something not related to the markets, but possibly interesting to some readers on here, my girlfriend just started her first semester in vet school at Mizzou and is blogging about her experiences. Apparently she's got about 40 hours a week in classroom time and labs! Very intense, but the program sounds cool because it is structured to have a very close-knit group of classmates through sponsored and non-sponsored extra-curricular social events. I have attended a couple of these with her, and it has been fun. It's sorta wierd to work on getting drunk while trying to glean cattle contracts insight from rural farm-boys! Her classmates almost all have their undergraduate degrees, so the maturity level of the people is high. After meeting the classmates, there's no doubt in my mind these people are committed to working hard over the next four years. I'm proud of my girlfriend for getting to where she is, and it looks like she'll be a part of a good community.

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