Tuesday, August 4, 2009

Take your pick. Tue Aug 4

Another day, another strong rise. We're following suit after overnight rises and at 12.35 pm we're up 70 points.
I'm out of Bly at 32.5 (v 27.5) and Gmg at 56 (v 52.5) and pleased with it as they both have slipped back. Also sold a few Pla at 105.5 (v 101.5) and Sbm at 24 (v 22).

Obviously most things are running in this market and I'm trying to get my head round the sort of stocks I should be buying. I want to be on the things running hardest and I guess that's the point, buy the things running hardest. Eg...

I was fiddling about with this at about 90 cents but a great time to buy would have been towards the close about two days ago once it was clear that acceleration was setting in. I did a trade like this yesterday in Gmg and that paid off pretty well. When these turn they retrace sharply and that's why it can be difficult to steel yourself to jump on board along with the normal human reluctance to pay a lot more than you had to a couple of days before.

By the way, my young assistant did buy Mre a couple of days back, along with Kzl.

He's still long some of each.

3.24 It's a reversal day and I sold out the rest of the Pla at 103 (v 101.5) and a few more Sbm at 23.5 (v 22). My assistant sold out of his Kzl and Mre earlier at 126 and 129. They're now 114 and 121 illustrating the need to be quick to exit these blow off situations.

4.10 I'm just long Awb and Sbm now and feeling cautious as a lot of the runners reversed course. For example, Bly trading down to 29 and Gmg at 49. The higher priced stocks have performed better so I wonder if these cheapies are the canary in the coalmine warning of a general reversal. Sold out a few Awb at 135 (v 136.5) and more Sbm at 23.

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