My core rule has always been to buy stocks that are going up and sell ones that are going down. Makes sense right??? If it was only that easy!! I find myself right now tearing that rule to shreads. Lets look at the positions I have.

AAPL Short @ 120 (up 70% in 6 months)
HOKU Short @ 10.95 (up 100% in 2 weeks)
JSDA Long @ 16.00 (down 55% in 3 months)
RACK Long @ 13.00 (down 66% in 6 months)
NYX Long @ 74.25 (down 33% in 6 months)

I am beginning to see a pattern here. Every stock that I am long is trending down and every stock I am short is trending up. Who am I to predict when a stock is going to change directions? Sure, HOKU is up 100% in 2 weeks (i feel pretty good about my positions here), that is seriously pushing it. I guess if half of these picks do what I expect them to I will do fine.

Should I keep pretending to trade by my core rule? It does make sense right? Or do I need to reexamine it?



Seth Godin Is A Marketing Genious





This morning Apple and AT&T announced the monthly plans for the iPhone. Only $60 a month... not bad... Anyway, without realizing it they are starting the party early. If you havn't made the swap now (Long to Short) you better hurry. Time is running out.


Click here if you have no idea what i'm talking about.



Yogi Left His Shoes On





For those of you who want to get a free iPhone listen up. We all know that the iPhone is one of the most revolutionary phones in history. It will change mobile devices forever whether you believe the hype or not. News like this does not come often and there is always a big trade to be had. So what is the trade to make $$$ off the iPhone release?

Short The $hiT Out of AAPL

Now don't get me wrong, as a web developer/graphic designer there is no company (not even Google) that I respect more than Apple. That being said, this is about making money and you can't let your emotions get in the way. Is taking your profit from shorting a stock to buy that company's product really unethical???

One of the oldest sayings in the market is "Buy the rumor, Sell the news". We have seen it work time and time again. Once the iPhone is released, what news does AAPL have left? The potential revenue and the speculation around the iPhone is already built into the price of AAPL's stock anywhere above $120 a share.

Lets look at AAPL's chart since the Jan. 8th announcement. The stock exploded on the news of the phone at MacWorld. Since Apple had never preannounced a product before, everyone hopped in buying up every share they could find shooting the stock up 20%. Oh, its not available until July?? SELL SELL SELL back down to where it was before the announcement.


Ever since then its been rumor after rumor, press release after press release, blogs, newspapers tv reporters, iPhone iPhone iPhone. These "rumors" have taken the stock on a wild ride up over 50% in just 6 months. Untill its June 29th release only a select few have ever actually laid eyes on an iPhone. This my friends is why the iPhone (up until this Friday) is classified as a rumor.

Now sure, the iPhone launch will attract A LOT of attention and probably some new Apple investors (suckers). They will hear about the long lines at the AT&T/Cingular Stores. They will hear about how people are fighting over them and waiting in line all night to own one. None of this matters. The people who run the money on WallStreet have priced all of this into the stock.

So how do you get a free iPhone? It is simple, short 25 shares of AAPL from $125 (or higher) down to $100 in the 2 weeks following the iPhone release. Take the $625 profit and go pick yourself up an iPhone. Don't forget to put a stop somewhere around $129 just in case Mr. Jobs has something else up his sleeve. (its happened before)

It has been a great year for Apple investors. Those of us who bought in 1 year ago today have seen a 100%+ gain. But all good things must come to an end. Its time to make some money down the other side of the mountain.





Today Cramer was pitching a company called Given Imaging(GIVN) for his Speculation Friday pick. These guys are actually convincing doctors and healthcare providers that they need a pill cam. Yes, as in a camera that you swallow. I love how it has the logo imprinted on the side of it, looks like a promotional product! Check out the website too, looks like a scandalous company trading on the pinksheets. I can't imagine a doctor prescribing their patient to swallow a camera. If people are actually benefiting from this then thats great, but honestly this seems like a desperate attempt implement imaging technology.




Sold my NVDA today for a nice 15.68% gain. I bought it on the 13th @ $37 and sold today for $42.80. If I dont sell after making 15% in only 6 market days then im getting too greedy. I could have just sold part of my position but I am confident I will be able to buy back in lower. The stock was up almost 8% at one point today because of an analyst upgrade. They set a price target of $47 so I think investors will look for it to reach there in a few months. In the mean time I would rather sell into strength and book this nice pop today. I will probably look to get back in on a dip.






Now this is entertaining.



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