Friday, February 5, 2010

I am a buyer here

Note: Updated in the end

Damn it! Damn them all....With the bulls running for the hills to take shelter behind MA(200), I have decided I am going long. Too much pessimism around. Too many forecasts of gloom and doom. All this makes me wanna go long.

Is this madness?? No Sir, not at all. As you know by now, I play momentum stocks. But this strategy calls for high growth, solid stocks which have been delivering in the bad times and will deliver in the future. I am going to take average positions in them and give them room to breathe. These are going to be position trades rather than day or swing trades. I am not going to time the markets, just buy these stocks at or close to their support. And now, dear readers, I know you are asking - which are these stocks?

Let me give you two - GMCR and CREE. Let me give you their charts and earning records. I believe these charts will say it all.

Update after jobs report: The market seems to be recovering after the jobs report. I am not going to chase these stocks. I am a buyer only at or near support. I am highly suspicious of any bounce for reasons underlined in yesterday's daily review.

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