Two Picks for the Long Term Portfolio

Yesterday, I made two buys for my long term portfolio. I rarely make buys for this portfolio but I couldn't help but notice two stocks that looked ripe for a long term buy. So, I decided to scoop up two of my past favorite Indian stocks: SLT and TTM. Both are stable companies that have taken a hit because of the emerging market mess. Despite this, I believe that once everything clears, these stocks will soon be off to their old highs. A high growth country like India will recover quickly from the market mess and its growing economy will help stimulate the stock prices of SLT and TTM.

More Pointless Movement...

Hey guys,

I know it has been a few days since my last post, but honestly, the recent market action has made me a bit disinterested with the market in general. I still continue to watch it and conduct my nightly research, but until the situation improves, my posts will be sporadic. I still invite you to throw me an email or post any comments or concerns as I still check my blog and email regularly. Just do not be alarmed if I do not quickly reply to your email as I have also been very busy as of late. Rest assured that I am not about to throw in the towel and quit. Far from that. I love trading, and researching equities and markets. This is my passion. I am not going anywhere. I'm simply just trying to take a step back for a moment and let the markets do their own catharsis. This is still part of my strategy. Capital and cash preservation is key right now. The best/top performing fund managers are the ones who have either adopted day trading into their strategy or those who are patiently sitting and waiting on the sidelines in cash. I guarantee you this. If you and I can remain patient, there will be tremendous opportunities in the market. These opportunities will be well worth the wait and will make up for the lack of trades or current losses.

Stock Picks and Trade Ideas for Tuesday

New Buy Candidates: ?



New Short Sale Candidates: ?



Add To: LPHI


Note: Check back tomorrow for updates on any new trades. So far there are a few that are possible buy candidates but none are 100% perfect long setups. At this point I would still be cautious as the market has still not found solid support. Look for more wild swings in either direction and even more volatility to shake things up.

The Market Feels Like An Empty Void

Please let me know if you share this feeling! I have been searching for possible buys rather diligently and yet, I have found none. Traditionally, oversold conditions usually produce high probability trade setups that one could go long. So far, no such luck. Am I just simply being impatient? Perhaps I am. It usually does take a few days for quality setups to appear. For now I have only found one interesting stock. I will let you know more about it later on. For now it is overextended and not at a good buy point.

Oversold: MPR

MPR in at 9.45-46


MPR looks like a good buy at the moment. Also, the increase in volume is helping out as well on an otherwise, extremely thinly traded stock. A little liquidity goes a long way.

Day Trade of the Day: LIHR

In at 18.19


Status: Still holding. I'm going to give it until Friday. Gold stocks wanted to run but they didn't have enough buying pressure to lift them higher. Tomorrow may give them a bit more time to run.

Status: Sold

Out at 17.81-5 (-2.20%)

Barren Landscape...

That is how the market feels and looks right now. This is why I do not post everyday. There is nothing to post about. The best thing to do right now is to just sit tight and wait. Sooner or later the market will have a reflex bounce. Most likely, this will be a short lived bounce. Regardless, I plan to milk it for all its got. With the Fed still cutting down interest rates, we have a long way to go before we truly bottom (at least a year).

Day Trade of the Day: DNDN

I decided to take a chance and throw in a day trade into the mix. Those that follow my blog know that I day trade very rarely. This is because I started trading in the bull markets of 2004/2005. Day trading was futile during those times as buy and hold strategies trumped even the best day trading methods. Today's market environment is radically different. In order to capitalize on the volatility I decided to take a chance (just like Scott at Stock Punk did) and go with the flow.

The trade DNDN.

Step 1: Placed trade. In at 6.41

Step 2: Hold on tight.

Step 3: Sell. Sold at 9.01-9.05. Gain= 40.5%

More Pain To Follow...

Although at this point we are ripe for a small bounce, I would tread lightly because odds are that it won't last very long. My charts are showing me that this correction is going to last at least another year (October 2009). Of course that doesn't mean that we won't bounce around a bit. I am also looking forward to a small number of possible longs to emerge as well. But still, the number of tradeable longs will be small and highly manageable. With the right position sizing one could still make some respectable double digit gains if they know how to hold 'em and when to fold 'em.

Stock Picks and Trade Ideas for Monday

New Buy Candidates: None



New Short Sale Candidates: None



Add To: None


Status: Just waiting for the tide to turn. I am keeping an eye on any new stocks that may potentially set up and run. I haven't found anything worthwhile as of yet.

Stock Picks and Trade Ideas for Wednesday

New Buy Candidates: EPCT, LPHI (rebuy)



New Short Sale Candidates:



Add To: ANCI (formerly known as XSI), QCOR, REV


Note: There are a few good longs that are starting to appear on my stock radar. Check back tomorrow morning for updates and a list of new potential longs.