Sunday, April 29, 2012

Less Gloating and a New Addition

I mentioned in an earlier post that I was interested in picking up a basket of stocks equally dollar weighted from the top stocks of the IBD 50. That has now happened. I have followed these for several weeks now. The top stocks include Apple and other stocks that have outperformed Apple…does this seem possible?

Jumping to explain the “Less Gloating” portion, I have taken the current Apple holdings that were bought and added to a multiple times “for a trade” and converted this a “buy and hold” (Cramer agrees with this). Some refer to this tactic as “buy and hope”, which is somewhat truthful. My attitude toward this stock has changed. Yes, we have some nice gains in Apple (now at 37%) and to continue posting this…well it is just “gloating”. This stock is now paying a dividend, and Apple continues to march their great products around the world, country-after-country with great success. I know this can fall, as all stocks are somewhat evil in this manner of behavior,  but future selling will likely not be based on chart reviews and price performance alone but also in watching their product success. Last week I was getting prepared to sell based on a continued price drop, but fortunately the price drop turned into a pop after the recent handsome earnings report. So saying all of that leads to the explanation that I won’t continue posting the gains on that lot of Apple after this.

However not to add confusion, but to based on a new beginning, I just bought Apple for a trade and this portion is indeed for a trade.

Okay back to the first conversation. The IBD Market Outlook changed to “Confirmed Up Trend” this week and I jumped in with a basket of picks from the top of the IBD 50. I have not worked out definitive “Rules” on subsequent selling and more buying, but I have some thoughts in mind and rules will follow

So what did I see in my weekend review?

The 10-yr Treasury yield is now at 1.97%

IBD (Investor Business Daily) now rides to: Confirmed Up Trend! as noted earlier

Copernicus Systems seems to be more clear to be long in the market, (but still not 100% in all systems and I have great respect for Copernicus), Money Flows are now up in 2/3 portfolios .


What will I do?

  I hope to buy more stocks and another ETF!

I am looking at stocks: EBAY, DIS and PFE and XLY, for the ETF, which seems to make sense as consumer confidence increases

Currently my "Stocks for a Trade" now consists of:
(All gains or losses shown are the total since purchase)

RGR  +11.05%, rebound continues

PCLN +30.15%, popping, now (2) in the bank and just into the second box .15

Both of these fine companies may join Apple and convert to buy and hold (at least Priceline which as a superb business model) and I should point out they are also high on the IBD 50.

Recent Additions this week from the IBD 50 are:
LQDT +3.65%
GNC +.57% (I almost passed on this one as I never see any traffic in their stores at the malls)
SXCI -1.41%
AAPL -2.01% (I know, I know, but at least I am not gloating)
ALXN -.34%

ETF’s for a trade are:

GLD (3) buys for -2.08% and I guess this is actually a buy and hold but it will stay here for now
IBB   (2) buys for +6.98% as the rebound continues.
EWY -.15%, recovering a little.

I hope you have a great week.

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