Don’t forget to study my newest post of my “Past Big Winners.” Today I posted AFSI from 2007.
There was a very lazy feel to today’s trading that made the market “feel” worse than it looked. Fortunately it wasn’t as bad as it felt because the market was higher across the board and I did not have a single FULL sell. There were a TON of partial sells but not a single one said “get out of me now, I am about to lose you a lot of money.” So that has to say something for this market that it did not follow-through on the selling and that we actually put in a gain where my portfolio did not do very well but did have pockets of strength like BKE which reported excellent earnings. That action proves that only 99% of stocks react to earnings in a negative fashion. The two longs tonight are not the best selection for new investors as neither one has perfect fundamentals to go along with a perfect chart. STSI is a very nice tobacco stock with a very pretty pattern right now. However, if you take the time to study the history of this chart you will notice immediately that is has some HUGE and PAINFUL whipsaws that when taken with the current bullish pattern makes the stock a little dangerous for newbies. Just take a look at January in 2007 and March in 2008. You will see those that were some wild rides for those that were involved with STSI. It looks to be in a much safer area to go long and the chart appears to have tightened up a bit since last time. UMBF is a great little midwest bank with a very nice chart pattern that has plenty of green BOP for us to enjoy. I really like how it built the most recent base with green BOP. The only thing that would have made me happier would be if it was created with max green. Still, it is a very solid chart with a lot of green all over the price, volume, and BOP. Combine that with the very strong fundamentals and strong earnings estimates and you have a pretty good long in a pretty insane market. Newbies, if you do go long, make sure to keep it small. Professionals you already know what to do. Tomorrow is sure to be extremely slow, and just like Rev said today, I would not be surprised if tomorrow is the lowest volume of the year and that we go absolutely nowhere. Never short a dull market is the old proverb and I have feeling this low volume rally will continue to take stocks up, with a lot of nasty heavy volume pullbacks along the way. Have a great Memorial Day weekend, if you are starting it a day early, like most will be. If you are not, then I will see you in the chat room where hopefully there will be a few fireworks for us to enjoy. Aloha!
new speculative long position: STSI
STSI is bouncing off the 50 day moving average and putting in a very bullish intraday reversal, on strong volume. Cut your final loss with a close the 50 day moving average, if the stock does not move higher immediately.
adding to existing Featured long position: UMBF
UMBF is breaking out to a new all-time high from a short base on a bigger base pattern, on strong volume. Cut your final loss with a close below the 49.19 level, if the stock does not move higher immediately.
