Sunday, June 7, 2009

Next week

I did not get a chance to look at the scan due to other commitments. I will not have any picks for this week.....

Friday, June 5, 2009

Friday's Update

Futures rallied in the morning after the employment numbers but sold off. Market did attempt to rally after the initial sell-off. USD had a nice rally and if this continues this will drive down the prices of gold and oil stocks. Gold stocks will take a bigger hit than oil stocks. At this point I recommend that people reduce their risks especially if you are buying stocks on margin.

I'm long SMSI which closed at $10.60 today and plan on holding those.

Out of all the stocks that I recommended last week ARQL, HEAT, EGO and GFI came down to the buy price. EGO and GFI sold off as all gold stocks. There is a small loss on HEAT and ARQL is doing great.

I will run the scan later this week and post the picks.

Non-Farm Payrolls

The job loss was less than expected although unemployment rate increased. We are getting close to 960 in SP futures which was my target. The main question is can we close above 960 today....if we do we could see 1040 otherwise we will likely retest 880.

Thursday, June 4, 2009

Friday's Employment Numbers

Friday should be a huge day because of the employment numbers. I believe that no matter what type of numbers we get we should see a rally. If the numbers are bad we'll have a relief rally (about 1%) and if the numbers are good then about 3%.

Eight more hours till the markets are open.

Wednesday, June 3, 2009

The right time to buy

One of the questions that we all have is when is the right time to buy. Many times as soon as we buy the market starts going down and as soon as we sell the market starts going up. This happened to me with SNS today. I exited out of SNS at the very low of the day and I have bought few stocks at the very high tick too.

When the market is uptrending, it makes sense to buy at the previous 52-week high after it has made a new high. The previous 52-week high should have been made about 3 months ago.
If you look at the weekly chart of SMSI, it made a new 52-week high on the last week of Mayand closed above $8.5. The previous 52-week high was made in the 3rd week of September and was $8.5, so in this case the ideal time to buy is at $8.5.

SNS made a new high in the 3rd week of April and it closed above $10.5. The previosu high was $9.8 and was on the 3rd week of September. I should have waited for the price to come to $9.8 instead of buying at 10.4....I exited out of this position today because I was disappointed at myself for not following my own rules.

Sold SNS

I took a loss on SNS......I should have been more patient when I was buying.

Holding SMSI.

Monday, June 1, 2009

Sold RGR

Sold RGR at breakeven.....I think there are better opportunities than that.