Friday, July 21, 2006


Took another look at SWY and decided to let the market stop me out for a good profit. If the market had been rising I would have held it but given the choppy nature of things I decided that a bird in the hand was worth more than the potential for eggs downstream - or something like that. Anyway I got 2.95 out of the trade per share purchased and I'm not going to sneeze at that or cry about it.

Played a little scalp using HANS. The way that works is I watch the VIX and if it starts to fall I try to grab up some high volatile stock such as HANS around a pivot point and ride it to the next pivot point - which is what I did. Made some on it and let the market stop me out. This is a fun way to make a living as long as the trade goes your way. I always keep a tight stop on the play and make sure I dump out at the next pivot point (unless, of course, the market is starting to run up).

Dumped SDS and I don't think these are very good funds to own. It was supposed to deliver 2x against the loss in SPY and it wasn't even close. Best I saw all week was 1.5. Anyway I took a small loss on it but I only had a small number of shares.

Sold back half my BGO - I'm getting a little leery of gold. Given the state of the mid-East I expected gold to rocket and it is doing nothing. So I sold back half today and will get rid of the rest next week if it doesn't rally over the weekend.

Bought INTC - again - I just can't pass it at this cheap a price and I don't think it will go down much more from here. Regardless of the state of the PC market, Intell chips are used in everything else so worse thing probable is that they just sit around my buy price for the next forever. My target is 18 and change or next Tuesday noon whichever comes first. (That's only part joke).

To finish the day I bought Expedia (EXPE). I bought it using a filter that I call linear regression transition. I found that when the linear regression slope transitions from positive going to negative going there exists a short term window of opportunity for the stock to go up. EXPE met that criteria.

The market is drying up (volume is going going gone) while I am typing this (12:18 P.M.) and I think I'm going to pull the plug for the week. All told I made money this week and will probably make more next so I'm happy.

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