Sunday, December 10, 2006

Sunday night candidates

Sector thoughts:
Biotech, Nanotech, Commodities, Gold, Indian Stocks, Energy will move to the upside
Metals and Mining - still have some steam left
Semis are shaky

HealthCare still is in the dog house, Retail is about to get there, as well as Big Pharma

(IFNY) <== risky (updated Dec 11th 9PM - I thought it was risky and it is, now is NOT the time for that - scrap it!)
(EVEP) <== thinly traded
(CCC) - IF it'll move above 6.25 on volume

( since I'm not getting any questions - how I play my stock picks, I guess everyone knows everything even without "strategy note" - "no problemo")

I've been cautious about (CAAS) ( long pick of 1200tec from TagBoard) as a long candidate since Nov 19th, but I'm keeping an eye on it, if it'll be able to move above 11.97, I'd say it might become nice breakout play

I'm beginning to think "short" looking at (CHL)
(VAR) still on a short list

And as always - PLEASE - re-read an article "My Trading Style" - among other things pay attention to "Trade Expectation Lifespan" - as I stressed out in that post - IF TRADE DOES NOT PERFORM according to my expectations under ONE WEEK PERIOD - I CLOSE position even if NOT LOOSING. For example of how it WILL save from losses look at (TRLG) long pick as of Oct 30th, position could be opened on Oct 31, then PPS drifted down, never violating -8% rule, then on Nov 7th it came back up to a break even point
( here another rule kicked in DO NOT PLAY EARNINGS!) so that position had to be closed due to 2 reasons combined 1. "break even" - is a laggard action, 2. Earnings. Following of that strategy would help to avoid whopping 28% loss next day ( Nov 8th ).

The point I'm trying to stress over and over again - follow the rules, price for breaking the rules is too high, money NOT MADE IS BETTER THAN MONEY LOST!

Here is an example how I EXPECT IT TO WORK: (ASIA) posted on Nov 15th, could be bought on Nov 16th, broke out withing next 5 business days for astonishing gain of 40%+ in two weeks. Worth noting - it all happened AFTER earnings, so those who think that the only way to make quick money is to play earnings are DEAD WRONG ( and playing Russian Roulette with 90% known outcome )


P.S. Watch "Market Leaders" - run for cover if they will start to brake down!