Tuesday, June 5, 2007

What A Lucky Stiff!

Last night I used Stockfetcher to screen for stocks making a new 52 week high, and for stocks that closed at the high-of-day. The screens returned several hundred stocks, and I just scrolled quickly through the charts, and saved the ones I liked. I ended up saving 22 stocks. This morning, while at work, I saved the symbols into my platform, and checked for any pre-market action. The one stock that stood out in the pre-market was ALVR, as it had traded some small lots and looked to gap up. The chart was showing a strong candle orginating from the 20 day average, and was extended just beyond the reaches of the upper Bollinger Band. I typically do not purchase stocks trading above the upper band. When the morning gap down occurred, ALVR held strong, and so I purchased it. I say all this because it turned out to have a killer day, and was one of only a few stocks that actually closed green from the 22 symbols I started with. I'd like to think I have some superior pattern-recognition skills, but I'm sure it was just luck that I picked the big winner. Anyway, I'm posting the chart because it makes me happy to look at it. As for tomorrow, the surge in volume tells me there is more upside left, and probably an a.m. gap-up. I will consider selling into the gap-up, although stocks that surge like this on strong volume typically will continue the run, albeit after some consolidation.

Today the account finished down a tad. I was very happy with how everything performed. Unfortunately, Stockalicious must be having a server malfunction because their site will not load and my kewl Stockalicious widget will not appear on my blog. Therefore, you have to trust me that I had a decent day, without my widget cheat-sheet.

I doubled my position in GIGM, adding 500 shares at $15.18. If you recall, I sold out of this position on Friday. Now I am back in, with a full position. The stock has caught a serious bid the last two days. SWHC also seems on the verge of running again.

The BobV32x system pick MDCO also closed green, on average volume. It closed 7 cents beneath my entry. It has 3 more days to show me the money.

The Nasdaq finally closed firmly within the Bollinger Bands, unfortunately on large volume. I'm continued to be concerned by the divergence between price and volume, but will continue to stay bullish until the technical picture changes. Note that bullish investor sentiment levels are reaching extremes.

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