Thursday, February 22, 2007

Two Fer Thursday

I'm going to take introductory positions in WLT and SYNA today - and depending on the mode of the market at 10 A.M. I'll take the position either this morning or at COB. By that I mean if the market (SPY) is going up at 10 I'll buy then if not I'll wait till close. This helps get a better price on the day of purchase.

Why WLT and SYNA? They popped out of my "three month low" filter (which is still bring home winners) and I had enough time this morning to do some due dilligence - at least Marlyn style. As you know I'm not that interested in what they do only how well they do it and apparently both these companies are in good hands management-wise. Institutional holdings are in the 90's so there is a low supply and both companies are distressed and coming off the bottom.

Here is SYNA


WLT insiders are buying with both hands but SYNA is kind of a mixed bag - the institutions are buying but some of the insiders are selling. I'm not too concerned with that for the moment.

I'm targeting SYNA for 1.25 up or .65 down (1 ATR). After it hits the 1.25 up that will be the new stop and I'll take it day by day after that. WLT's target is 2.00 up or .87 down (1 ATR).

As you know I am a proponent of pivot points and I have learned to use the pivot point method as kind of a moving average. Using that method I produce these kinds of charts -

This is WLT and what you do is fairly simple - when the red line crosses the blue line you buy. The method is a bit slow - in other words the move is under way when the cross occurs but I like that because it reduces the number of switchbacks. As you can see in this example sometimes the red line sits on the blue for awhile and sometimes it just takes off. I prefer it when it just takes off - naturally.

Again this is not an invitation to invest in any stock, bond, mutual fund, or your Aunt Nellie's latest get-rich-quick scheme involving alligators and barbecue sauce (although you might stand a better chance with Auntie than with the "uncles" down in the pits - wink wink).


Bullish Jim said...

WLT shows up in every screen I do looking for high quality beaten up stocks. I can't believe I haven't bought it yet! Your post has given me another reason to consider it.


Theirs has to be one bad day a week.