How to Buy Stocks and more

November 18th, 2009 · No Comments · Authority Blogging

The stock market was down today for the fourth day in a row or 5 out of the last 6 trading days. Stocks traded with low volume and volatility which caused some stocks to be less liquid than usual. Although investors are likely to get discouraged, we shouldn’t have any problem finding opportunities long or short. We are testing the trend lines with many stocks and breaking below them on some stocks. We are at the point where if another decisive day down tomorrow will trigger off sell signals from a technical aspect by breaking below the trend line support. For the stocks that I bought as early as last Thursday on some oil stocks and others on Friday, this is one time I am willing to ride things out with the forecast that we should start heading back up.

If the market continues has another day or two down, this would be a technical and psychological trigger to change directions trends. And it looks like we are going to have a down opening—Japan is down over 5% tonight

Oil prices went down to $37.55 today from the $50.45 we saw a week ago. This is an extremely high odds sector to buy long at this point. Oil prices should shoot up like a slingshot out of this bottom. The odds of oil stocks and spot prices staying down at this level for long is very low. Note two new oil stocks below.

We should be getting more volatility these next few days and intraday trades should be revisited if you are comfortable with that technique. It is an excellent technique during volatile times as well keeping you sharp on reading charts and executing using signals.

Intermediate Trade Positions: New ideas: Oil stocks XTO, XTO Resources and APC, Anadarko Petroleum are acting strong and would benefit greatly on oil prices moving up. Note that XOM and CVX on the stock list are not as favorable of chart patterns. COP, Conoco Phillips is preferred.

MO, Altria, tobacco and alcohol manufacturer is giving a nice signal on long intermediate trade. Worth a small long position here.

BNI, Burlington Northern dropped on CSX’s below expectation earnings report, another railroad. If you just bought the stock today, consider selling it after a couple days of a bounce. This big drop today is an ominous sign for coming weeks for any stock.

SRS, Proshares Ultrashort Real Estate ETF is spiking up. I forgot to follow-up on this stock and put it on the list from last week. This is moving up as real estate stocks are moving down. Housing stocks are turning over and are likely to continue for some time.

MOS, Mosaic, POT, Potash

Swing Trades: New ideas:

Note that BNI and USO are very good entry points long. These are likely to be intermediate term trades from here but at least a good LONG-SWING trade.

Day Traders/Intraday stock ideas: FSLR, RIMM, AMZN, AAPL, and RMBS are favorites to trade intraday tomorrow and we are likely to see some big bounces after some selling. Look at MOS, XTO and POT as possible intraday stocks as well. Note that these are also on the intermediate trade considerations. The volatility that could occur tomorrow on a reversal after a negative opening won’t be limited to just these but many stocks could have a substantial bounce as a reversal is very possible.

NOTES: This is not a good time to do much shorting, not even during intraday trades. When the market presents a good time to short don’t be intimidating selling short when a good sell signal arises. Start with extra small positions until you learn how to read the charts and build your confidence.

When I list several stocks from the same sector, like the housing industry for example, don’t short all of them unless you are well diversified and it represents a small percentage of your total stock account (in that same account).

REPEAT: Keep an eye out for biotechs; they are building momentum and often do well in January.

Ticker Symbol	Type	Notes	Purchase Date	Open Price	Target Price
HWAY, Healthways	LONG- INT	Sold at open $11.50, 1-7-09; Nice move	12-29-08	11.04	14-15
VRX, Valeant Pharm	LONG-INT	Sold 22.80, 1-6-09; should move up	12-29-08	22	?
K, Kellog	LONG-INT	Sold 45.09, 1-6-09; buy a little	12-29-08	42.39	47
IBM, Int’l Bus. Mach	LONG-INT	Sold 87.70, 1-6-09; fill long position	1-8-09	86.14	92
UTX, United Technologies	LONG-INT	Sold 54.60, 1-6-09. Should move up	12-29-08	50.92	55
LLL, Level 3	LONG-INT	Hardly going down in negative mkt	Buying soon
USO, US Oil Fund ETF	LONG-INT	Sold 38.36, 1-6-09; BEST IDEA!	1-8-09	32.00	50-55
XOM, Exxon Mobile	LONG-INT	Sold 82.14, 1-6-09; Buy COP instead	12-29-08	78.28	87-88
CVX, Chevron Texaco	LONG-INT	Sold 77.56, 1-6-09; Buy COP instead	12-29-08	71.25	85
COP, Conoco Phillip	LONG-INT	Sold 56.53, 1-6-09; Fill complete pos.	1-8-09	53	58-59
BP, British Petrol.	LONG-INT	Sold 48.89, 1-6-09; Bought today	1-8-09	48.33	51
RMBS, Rambus	SHORT-INT	Ironic this drops 45% Friday on bad news	DELETE
FXI, Xinhua 25 ETF	LONG-SWI	Sold @ $31.69, 1-6-09. DANGER!	1-2-09	30	40
PTR, PetroChina	LONG-INT	Fill complete position; should bounce	1-2-09	92.84	102+
PLD, Prologis	SHORT-INT	Top signal, fast MA turning down.	Start short
DHI, D.R. Horton	SHORT-SWI	Buy SRS long; this is Ultrashort realestate	1-7-09	7.84
TOL, Toll Brothers	SHORT-INT	Buy SRS long; this is Ultrashort realestate	1-7-09	21.86
KBH, KB Homes	SHORT-INT	Buy SRS long; this is Ultrashort realestate	1-7-09	14.90
PHM, Pulte Homes	SHORT-INT	Buy SRS long; this is Ultrashort realestate	1-7-09	12.42
LEN, Lennar	SHORT-INT	Buy SRS long; this is Ultrashort realestate	1-7-09	10.86
CNO, Conseco	LONG-INT	Breaking down; looks bad.	12-31-08	4.15	5-6
HOTT, Hot Apparel	LONG-INT	Bot too early but still hold.	1-8-09	8.71
AGU, Agrium	LONG-SWI	Sold 38.42, 1-6-09; watch POT, MOS	1-5-09	36.91
FRPT, Force Protect	LONG-INT	Strong so far; hold position.	1-5-09	6.40
AFFX, Affymetrix	LONG-INT	Still within uptrend	1-6-09	3.18	4.50
MDR, McDermott,	LONG-INT	Turning down?	Wait & watch
FCX, Freeport Mc	LONG-INT	Buy a little long.
SCHN, Schnitzer Stl	LONG-INT	Stopped @ 36	1-8-09	36.02
MOS, Mosaic	LONG-INT	Looking good; worth small position long	1-9-09	40.37
CAT, Catepillar	LONG-INT	Stopped @ $43	1-9-2009	43.91
DE, John Deere	LONG-INT	Little more downside; should rebound	1-12-09	45.19
XME, Metal/MngETF	LONG-INT	Start buying a little gradually.
BNI, Burlington	LONG-SWI	Very negative; let it rebound to sell	1-12-09
BG, Bunge	LONG-INT	Turning down; peak	1-12-09

SWI (SWING): 2-7 days INT: Intermediate term position 8 days to several months. Open Price: price paid on opening long position or price sold on short position. Bold notes on table above represent changes from previous day.

Thoughts: Best odds only, be decisive, aggressive, mentally flexible, stay in position size, don’t overtrade and wait a little longer to buy and wait a little longer to sell. You will find that will make you more money on your trades. Trade what you see, not what you hope for.

Don’t trade unless the setup is there for you, then use the charts to tell you when the odds are heavily in your favor. Don’t force anything to work for you, let the setups develop and then take advantage of that. Be patient. Stay in position sizes without letting any intraday trade represent no more than 10-15% of your total account value. As you build your account, your position size percentage should get smaller and smaller to lower your risk.

Have a great day and I’ll talk to you tomorrow.

Mitch King

www.TradeStocksAmerica.com

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Mitch King is the founder of TradeStocksAmerica.com. All material presented herein is believed to be reliable but we cannot attest to its accuracy. All material represents the opinions of Mitch King. Investment recommendations may change without notice and readers are urged to check with their investment counselors before making any investment decisions. Opinions expressed in these reports may change without prior notice. Mitch King and/or the staff at TradeStocksAmerica.com may or may not have investments in any stocks cited above before or after this newsletter is prepared. Opinions expressed in these reports may change without prior notice. Disclaimer – Stock investing or stock trading has large potential rewards, but also large potential risk. There is risk of loss as well as the opportunity for gain when buying or selling stocks, bonds, option contracts or engaging in any strategy listed in the Daily Stock Report, The Wizard Training Course, The Trading Room and our seminar or workshops. You must be aware of the risks and be willing to accept the risks when investing or trading in any financial markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell stocks. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

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