Friday, February 6, 2009

Good for Swing and Long

Gaming stocks have been absolutely hammered this past year, and for good reason. But at some point you have to call a bottom, and realize that some were just simply overdone. One prime example of this is Las Vegas Sands, LVS. Currently trading at 3.80, this puppy traded at more than 95 dollars less than a year ago. (This is not an official Stock Assault pick, you will not see it in the software.)

With a current book value of over 6 dollars a share, and just issuing a 2.50 a share dividend yesterday, I see this as a bottomed-out gem ripe for the picking. Use it as a swing trade for a good 5 to 10 percent pop, or keep it as a long term investment and watch you money balloon as the economy recovers, and people start playing again. Either way, I believe this stock is a good play.

Have a good one,
Roger

Wednesday, February 4, 2009

DJI Trying to Rise

It looks like the Dow is trying to rise above a well-formed base as shown by the support line of 7887. The first test of resistance will occur at around 8387. If that boundary is broken, we can look for the next level of resistance of 9043 at which point the first level of resistance becomes the next level of support until it can consistently stay above 9000. I am waiting for the day we see a consistence rise in equity price when the level of 9000 becomes a rock-solid base of resistance.

When that happens we will see the strength we have been looking for to signal the end of what many people have referred to as the "absolute" bottom. I've actually seen many bottoms formed during this whole retraction of the market, but I expect we have really seen the worst of it. I still believe this is an excellent time to establish new wealth in what I firmly believe will be the biggest bull market in a decade, provided we can actually clear the bottom far enough to keep its memory from interfering with our judgment. And how does that memory affect us? It instills fear.

That's as plain as I can put it. We need multiple strings of victories on the way up so that the memory of all this stays behind us, but not so far behind us that we ever forget how we got here: greed. That' put plainly also. We need a new order of trader to emerge from all of this; An honest trader that compels the rest of us to excel. Hopefully each of us can be that trader.




Have a good one,
Roger

Tuesday, February 3, 2009

Another Giant at a Bargain

I hope most of you took the little tip on UN. Another tip from today's picks would be MMM. This giant makes the cash and is trading at levels that make it a steal. In fact, at first glance at the charts it is poised very similar to UN in the stochastic distribution recently.

I have too many open positions to take advantage of it, but consider it another one rated "Roger ready". Trading days like today seem to be getting more common. It has a very bland feel to it with no real excitement one way or another.

Have a good one,
Roger

Monday, February 2, 2009

Making Money on the Way Down

Several stocks have a very tradable pattern. This hold true whether in an upward bias or downward bias. For example, look at the attached chart for DO. This was a Stock Assault pick from a few weeks back, the pick that I rode for a 20 percent gain. Notice the price channel is downward, but the price bounces up and down along the way in a very tradable manner.

There are many stocks with the exact same pattern. I prefer the up-channel myself, but I'll trade either way as long as I win. On another note, I was looking at the picks generated today and the one that stood out to me was UN. After a large drop, and trading near its 52-week low, I thought this to be an excellent entry point.

I got it early while it was negative at 21.62, so we'll see how it rides out. People sometimes ask me what a good profit is, and I believe if you can net 2 percent on any trade then you've done well, especially on a swing trade. Let's hope for a good week with no devastating news to de-rail us along the way. Remember to screen your picks, and set your stops. The longer you trade the better you will get, and no matter how long you've been trading you will always learn something new with each trade.




Have a good one,
Roger