Van Meerten's picks

In short duration games like this I look almost stricly at price momentum. I don't have sell targets other than trailing stop losses. I might buy and never sell and try not to get whipsawed in a choppy market.

Since the market has been good to me so far, this is my first sell ticket in this contest WSCI - WSCI Industries, Back in Feburary it was on a tear I got in around 8.75 rode it up to 18 and now it's around 12. I use Barchart because it's simple and every single one of their technical indicators is a sell. I also see short interest exceeds long volume 4 to 1. Everyone now hates this stock. After all it's in Auto Parts and who wants to be in that now.

Unfortunately volume is slow and everyone is selling so it will take Marketocracy several days to get me out ( I hope in time with some of my profit saved.)

I'm replacing it with CWEI - Clayton Williams Energy a domestic oil and gas exploration and production outfit. Yes, I know my portfolio is heavily weighted in energy but it's what's happening now and this company is in Texas, Louisiana and New Mexico. No worries about world events disrupting supply and market flow. In fact if problems disrupt oil flow from the Middle East that would be even better. The story is good and the technicals are even better: doubled revenue, 26 new highs in the last 65 days, buy signal on every single one of Barcharts tecnical indicators and within 1% of it's high. Since it's been on a fast rise ( 30% in 20 days) I'm putting a tight stop loss in at 80 and moving it several times a week.

Comments: View Comments |  Saturday May 31, 2008