Monday, June 12, 2006

Watch list for week of 6-12-06

This correction has become more severe than I anticipated. It seems that a lot of bulls capitulated on Thursday, along with some margin call liquidation. If Friday had been an up day then I would have a little more confidence in long positions. I think this bull might be close to its last legs, but I cannot be certain yet so I am still net long. My watch list this week looks far better than it has for months. It has been a while since such high relative strength stocks have consolidated long enough to meet the criteria my market homework software looks for.

I'll probably be re-allocating some of my portfolio from the worse looking positions into better looking consolidations on the list below. I've had GIGM since I posted about it in March and added to it again this past Thursday morning. I'll add even more shares if it breaks out from its current consolidation.

1 Comments:

At 7:20 PM, Anonymous Anonymous said...

best of holidays to you sir
last we talked you were thinking of quiting this blog and i posted that you were doing good and if you had the time to keep it up.
congrats on what hopefully was a successful trading year for you .
to jog your memory i asked you to look at some charts that i had liked and you concurred the good risk reward BRLC and ALY were 2 that come to mind . what a great trader's market that a lot of bad trades came back if you didn't panic and sell them . you had a great pick in some canadian bottler i forget the name but it went parabolicc. here is the game plan as i see it coming into this year . it seems algorythems (ck sp}have takin over 40 percent of trading decisions on money either coming into or leaving a stock . with predictions of over 80 percent by year 2008 a new challenge is here .. the daily swings on 3 to 8 dollar securities will be like 5 to 10 percent often as these math computers start trading .. i believe it broadens the opportunities for short 1 to 2 days sometimes 3 to 4 hour spikes and price collapse occurences .. i am only holding 2 securities over the holiday here -- CBAK and WLM -- the next few weeks should see some real head banging movements enabling traders to perhaps work hard 3 weeks and then late april sell the indexes double inverse amex listed QID DXD AND SXS the greatest invention of the year those products ... keep up the great work and good fortune to you and family bruce

 

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