Sunday, May 22, 2011

Sabbatical is over...back to is good

Monday Morning Addendum:  With the futures showing a much lower opening I will hold off on the plan to take initial positions in  IBB and HHH ...perhaps later after things settle down and the direction is more clear. I am a momentum investor not a value investor and this momentum is going the wrong way for now.

Well the sabbatical was nice, but now it is time to get back to work with stocks and ETF’s…time to get them speaking to me again.

In my last post I see I was not clear as to what I was going to do,  but for sabbatical I sold out of all of the stocks and ETF’s I was holding except for GLD (gold). I sold: SLW , BIIB , USO , AGQ , IBB ,  RSU ,  OIH  and XLE.

I was not going to watch the market for a couple of weeks and I did not want to let gains turn into losses. I had some nice gains in the energy related ETF’s and in silver, but now it is time to start with a clean slate.

As noted I did not sell out of dividend paying stocks…. these are my “bonds” and they are not bought to trade. I don’t discuss these much in the blog as I typically don’t trade them… I actually try not to watch them too closely, I just let them pay their dividends, hope they grow their dividends and grow in value over time. I review these every quarter to make sure they are still profitable companies and that they are still paying their dividends, if not I sell them. I do a more in depth review of my dividend stocks about once a year to see if I can identify better choices.

So what did I see in my weekend review?

IBD (Investor Business Daily) notes in their Current Outlook: Market in Correction. They repeatedly point out that when this occurs it is not a good time to take new positions…. good conservative advice.

Some of the top stocks in the IBD 50 look interesting LULU, ULTA, FOSL and APKT, although they dropped a bit on Friday. I will be watching these; perhaps buying a basket of all of them makes sense.

My interpretation of the Copernicus Systems is to be long in the market, but to do it conservatively.

Energy ETF’s such as  OIH, XLE.and IYE are dropping in ranking.

 IBB (Biotech) HHH (Internet), EWY (Korea), EWG (Germany) are either looking good in their rankings or they are simply rising in their positions of rank.

I will take initial positions in  IBB and HHH  and possibly follow with EWY and EWG  ….for some reason when I have owned these Korean and German ETF’s it has never been for very long…they always get quickly replaced with something better...I don't know why

A number of stocks look good to me: AMZN, CTXS, IAC, INSP, SYMC, AMGN, BMC, DELL, INTC, AXP and  UTX…in particular AMGN and AXP but I will hold off from any new stock positions until the market direction is more clear for a momentum investor such as myself….but I really like it when a number of stocks look good so I will be ready.

Currently my "Stocks for a Trade" now consists of:
(Gains shown are the total since purchase)

None, Nada

 ETF's for a trade are:

GLD 5.11%, second purchase 1.56% …down a bit

Normal ETF's: (this is for ETF’s  I buy from the review of the Copernicus systems).  IBB and HHH will soon go here

But for now: None

Have a great week.

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