Monday, April 21, 2014

Moves at 6800 index

I was selling shares at 6800 as planned and wanting to transfer the gains immediately to issues that are fundamentally sound but are still far off (for some reason) from their 52-week high. Having too much cash while there is still upward momentum is obviously not optimum.

I would like the issues that I freshly get into to not to have a negative news or pending decisions attached to it. MWC and PNX are examples of issues very much below their peaks but have attendant problematic [regulatory] news attached to them, so these are stricken off.

FLI, SECB, SMPH, BPI, are the others Im looking at. They still have room before hitting resistance against 52-week highs again, but of course these are not guarantees. The assumption is if we're on a general uptrend already, these should wake up some and we can benefit riding them as they stand up the bed of slumber, even for short-term.

For SMPH, I would like it to correct to 16 to relieve overbought conditions before going up again. It is also not a long-term issue for me, because of its high P/E. If I do get in, the intention is just to ride for short-term.

SECB--it would also be useful to watch for increase in foreign buying again (like last year) before getting in or adding to existing positions. It would be ideal to see a combination fo 3 among MACQ, CLSA, CSUISSE, JPMORGAN to buy in bulk again. I'd also like to see WEALTH buying as well.

Im holding the rest of the position in blues to ride them until we near 7 K or index weakens and breaks 50-moving average line. Breaking below 50 is always a possibility is we near that dreaded month of May again.

Congrats to those who already profited. You should have already recovered from last year, and gained substantially these past five months, if you stuck buy our attractive fundamentally-sound picks.

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