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July 2007 Archives
My strategy
Monday July 30, 2007 : 12:29 AM

I look for beaten down stocks, or stocks that are showing a pattern that would determine upward movement. Generally I like to look for stocks that most others are viewing negatively, that show some negative fundamentals, but look to be crossing over from the down side.

Also, I look for stocks that have recently had the MACD cross over the 9dma, or that look to be doing so.

With the losses over the past week prior to the start of this contest, I think there will be some good buying opportunities to be had. However, I don't believe that all of the subprime fallout has been priced into the market yet, so you can count on me to stay away from banks and brokerages in the initial week of the competition.

Good luck to all, and let the games begin!

First Investments
Tuesday July 31, 2007 : 12:59 AM

I started off the day with a stock that has been riding a slow up and down roller coaster ride between $70 and $110 for the most of the past year, NYX. I believe this stock has the potential to return toward it's earlier highs, and as volume on the exchanges has been high of late, they should be seeing positive returns. However, I am not looking to this as a long term investment, and will probably look to exit in the mid 80's. The MACD is currently negative on this one, but it looks like it will cross to the positive soon, and the Stochastic's are showing as bullish. It has recently come down from overbought, and for the time being I like it.

Similarly, I look at the hit that ICE took last week, and it is starting to rebuild value from it. I think this stock has the potential to hit 170, and will look to hold onto it unless something disruptive occurs - again.

I'll add more comments on my other opening picks tomorrow.

Additional Investments
Tuesday July 31, 2007 : 11:46 PM

Buy Starbucks SBUX at the open tomorrow, 1000 shares. This stock has had a lot of wind taken out of it since it's Nov high of 40. The MACD has recently crossed back in to positive territory, the 13 dma is trending up again, and stochastics are showing as oversold. This is more of a gamble for me as earnings will be announced after market close, and this can reek havoc on an investment. Overall, though, I think this stock has room to rise.

I covered NYX and ICE in my previous posting, now I'm questioning whether it was too soon to get into them. I still like what looks like NYX's MACD looking to crossover, so I'll probably hold onto that, but I'll be watching ICE closely, and may close out and take the hit.

Onto my other buys, I went with DOW, even though the MACD crossed into negative territory, the stochastics look good, and the MACD went negative only with the recent market downturn. The trend looked like it would carry them over $46 and I think that they can build back to it.

WBD is a stock I've followed for a while, and it has consistently been trending up for the past year. This is a mixed bag for me, negative MACD, good Stochastics, and a mixed RSI that appears to be trending up. I've gone with this one based on it's past performance, generally when it has risen by $2.00 or more on one day, it has gone even higher on the next. We'll have to wait and see if it keeps the trend.

PCAR got hammered on earnings and continued to fall. Stochastics are showing bullish and also oversold, RSI looks like it's turning up, and the trend looks like this should be a $90 stock, although it has been even higher. I'll wait to see how this plays.

LMT has a positive MACD, but negative stochastics, but also showing as oversold. However, we are in a war, I like defense stocks, the trend shows it could reach $104 and it's been as high as $107 recently. And although I didn't know it when I bought the stock, it was announced tonight that they've just been awarded a $5 billion contract for the F22 raptor.

GD has been trending towards $82, appears oversold, doesn't fit my normal pattern for what I look for, but I took the chance that it was undervalued after coming off a high of $84. It also just got government contracts awarded tonight, I'll have to watch this one tomorrow.

Finally, CROX, where will this stock stop? I've been in and out of it for a year in my own accounts, and should have just stayed in. They've continued to ride high in the recent downturns, and I just figured, why not go for the ride. Time will tell if they've finally hit a wall or if they'll head upwards again.

Cheers to you,