Stocks for the Rest of Us
Archive for January, 2009
AIPC: I Love Pasta But I Love Money More
Jan 16th
I’ve closed out my AIPC position for now. As much as it pains me to do so you just have to be insane not to sell after a 20% move in this market. I’ll revisit this stock again on a pullback.
NYX: God I Hate This Stock
Jan 16th
I hate this stock but it’s worth taking a shot here as the risk is perfectly defined. The chart should be self-explanatory. The stock sold off hard today and filled the gap from early December in what looked to be some kind of capitulation before reversing and trading up after hours. I think you can get long right here and stop yourself out below 20.
AIPC update: Consider Taking Some Profits
Jan 16th
I think it might be time to start taking some profits in the AIPC trade I talked about the other day. We’re up nearly 20% and in this market you have to take what you can get.
BofA Takes More of Our Money To Stay In Business
Jan 16th
It appears as though BofA is taking another 20 billion dollars of taxpayer money to stay afloat. I can’t understand why Ken Lewis is still the CEO. I could probably run a bank into the ground just as well and I’d only charge a couple million dollars. If anyone at BofA is reading, I’m available. What I find strange about the whole thing is the reason cited for the additional capital infusion. According to an official it’s to help “digest” the Merril Lynch acquisition. UUUHHMMM…Now I’m no MBA but I did take business 101 and if I remember correctly there was a section in the book where they talked about acquisitions and how you’re not supposed to acquire companies that bankrupt you. I guess Mr. Lewis must have been out that day. On top of that, what’s with this guy over paying for stuff. I mean, 40 billion for an insolvent company? cmon!! He could have waited a few weeks and picked it up for next to nothing Jamie Dimon style.
Time To Trim The Hedges
Jan 15th
If you took my advice in the last post and put on some hedges I think it might be time to take those off. We’re currently a little oversold so even the slightest spark can cause a fire. Clearly the market is starting to get excited about the news of a Bank of America bailout. Although I can’t imagine how the failure of yet another major bank can be seen as a good thing there’s no reason to fight the tape. Having said that I’m not so sure I want to be getting long here either.
AIPC: Everyone Loves Pasta
Jan 8th
This is a purely technical trade (although I do love pasta). The setup is easy. The stock opened up on the lows today and bounced. I want to stop myself out below today’s low. The big volume on the up days shows accumulation and the low volume sell offs reflect simple profit taking after a big move. Another way to play this stock would be to establish a partial position here and wait for a pullback to 17 where previous resistance was. You can stop yourself out of that small position below the gap and add to it on the bounce off of 17.
AIPC
S&P Oscillator Update: It’s Time To Lighten Up Into The Rally
Jan 8th
The S&P oscillator is back up to around 80 which historically has always proven to be a short term top. We’ve had a huge move off of the lows and I think it might be time to put on some hedges or take some profits. No one ever loses money taking profits. Originally, I thought that this particular oscillator was only relevant in bull markets. However, looking back at historical data it looks like the oscillator holds up even during a bear market and/or bear-to-bull transition.