Friday, August 21, 2009
So I determined that I would change some stuff with how I invest, focus on ETFs that allow swing trading without easy 10-20% losses the way some IBD "leading" stocks have done at so called technical breakout points. I still need to get back to getting this list together, formulate how I will track them, and then determine entry and exits.
Having said that, chance favors the prepared mind. I've recovered some with some decent trades off the bottoms in two stocks whose charts I'll try and post here. CNO entry was unexpected but the action a few days ago screamed it was ready to go higher. Story wise I suspect that it is not as oversold as AIG but should see some significant upside action in coming years. I traded for some nice profit in this one already. C is a similar story, I've had it for a short while, now with a cushion to consider being an investor. Both of these stocks were hit poorly by market selloff of late. I think moneys here could be doubled in near term with some market magic.
Reflecting further on IBD complaints, I think the poor performance of this style for now is really an indication of market conditions being not too hot near term. Rubber band theory working well, things coming more to neutral after being stretched too far in odd directions. Also, banking and insurance are highly rated groups in IBD but likely have too much fear associated with them to be amateur subscribed.
Posted by nursebee at 4:55 AM