Tuesday, June 19, 2007

Too Much Cash and Too Much Momo

So I keep waiting for a pullback to spend some of this cash, which is running now at about 30K. Everything just keeps going up. Now, to be sure, I'm not complaining. I just wish I would have spent some more of it. Its thoughts like, "If I would have just bought twice as much of this or that" which can really be annoying.

All in all I'm holding 5 winners and 2 laggards. The laggards are VRGY and ALTR. When I think about it, 2 out of 5 is not so bad. VRGY and ALTR were bought as breakout plays, but didn't breakout, so they will be dumped before too long. My other breakout play, BKI, looks like a dream.

Other than that I do not have much to say. We are in a heck of a bull market, and it looks like it will power over just about anyone or anything that gets in its way. I'm not one for making predictions over a long time horizon, but I think that if good earnings reports start to pour in, this run has the potential to continue.

I feel strangely un-profound at this moment, and the result is that I have nothing really good to write about, so I'll let you move on to another blog.

I did sell out of ALTR at the close. 500 @ $22.36 The stock is near 50 day support as well as the lower Bollinger Band. I hate to sell it near support, but I do not like how it traded today in the wake of MCHP trimming its outlook. I only have a small loss in ALTR, and I like to keep them that way.


JHQuinn said...

2 out of 5 would be 40% losers. 2 out of 7 is 28.6%, so you are better than 2 out of 5.

Woodshedder said...

Yes, Jhquinn, thank you, in my haste, I erred. It would be 2 out of 7.

Danny said...

your post defines summer trading--boooooring.

Just kidding, though we both know I'm serious, since you highlighted it yourself.

30k -- enough to build a position in a lot of good stocks, you just need to branch out more. maybe 7 could go to 9.

Or buy a 3 month cd for 15k, so you at least get something. Or you can buy SWVXX, but that's only offered through schwab. I really like that one.

Or, just man up, and add 1500 to each of your names when they pull back a little.

Dinosaur Trader said...


Have you completely lost all touch with reality? I mean, what the heck are you thinking selling at support like that?

Just kidding. Just doing a little imitation of you over at my blog! HAHA!

Anyway, I like the IBD school of investing. Mr. O'Neill isn't really a fan of holding more than 5 names at a time. So with your extra cash I would look to add to your winners whenever they pullback a bit. Just make sure you pyramid correctly so you don't mess up your average price.

Hey, and is it me or have you kicked ass ever since leaving the VO? What gives?


Woodshedder said...

Danny, I've been waiting to add- a la, your last option. I'm also considering selling everything except for MVIS and taking a couple months off. Believe me, I could a lot more done at work.

DT- lol...yes, come over here and bust my balls...

Hey, did you check out maoXian's dummy setups? Do it, now, if you haven't yet. You have no excuse, I gave you the link.

As for the VO, I had a period of a few weeks or a month after leaving where I sucked eggs. Since then, I'm probably up ~15%. So I guess you could say that. I would be happy to come back to the VO, except that I don't typically daytrade, so my returns would be unrealized for open swings. If that is okay, let me know.

Dinosaur Trader said...


So you'd send me your unrealized gains or losses each day? That'd be fine. We'd basically be taking a reading of your account.

Shoot me an email if you want in again. I'd be happy to have you.