New Stocks Live | Penny Stocks| Stock Marketamp nbsp

Selling Almost all Remaining EnerNOC (ENOC)

admin — Tue, 08 Dec 2009 16:53:06 +0000

The position in EnerNOC (ENOC) has worked out very well for us… after a purchase right at the 200 day moving average on the 23rd of November, the stock did a complete U-turn the next day and ran right into resistance. We dumped 2/3rds on the 27th, for a 11% gain in a week… the velocity of the move surprised us, but we will never complain about such gifts.

At the time we wrote

If the stock gets over $30, the chart will be in far better position and we’ll most likely get back the 2/3rds we sold off. Until otherwise proven, we assume it will falter before then…. happy to be proven wrong.

And thus far that seems to be the case – the stock has stalled at resistance multiple times; almost textbook in fact. :So with that said, I am going to dump almost all the rest of our position for a 8% gain – still great results for 2 weeks of “work”, and sit with a 0.1% stake just so it doesn’t fall off my radar.

At this time I would not be interested in buying back until it falls back to the 200 day or moves north of $29. Until then, it will sit as a 0.1% position while we await a more compelling entry point.

Closing Meritage Homes (MTH)

admin — Tue, 01 Dec 2009 03:12:08 +0000

This market is confusing; I face a swathe of quite awful charts in the small and mid cap arena, while every institutional manager on the planet rushes into Amazon.com (AMZN) and a handful of similar ilk. The market leadership seems to narrow by the week, but it is almost entirely located in names represented in the well known larger cap indexes.

Meritage Homes (MTH) is another name that is breaking down; this was our proxy for exposure to the government sponsored “housing recovery”; we started the position in May. Now that the seasonal strength in the sector is over, we can go into hibernation for some months and then begin getting ourselves into a lather when (as it does EVERY year) housing data starts ‘showing signs of improvement’ next spring. I will remind myself to load up on anything housing related around next March since the green shoot crowd will be out in force and in awe (remember, we have no memories) that housing sales in June 2010 will be stronger than April 2010. Even though it happens every year.

But for now I am more inclined to short MTH than be long, so we’re expunging the last small piece (0.1% exposure) in the portfolio. The majority of this position was expelled on October 8th at $19.22, so we missed that spike up afterwards and the ride down. As with much of the market, another stock just churning.

Frankly I am having trouble finding good charts that don’t involve a PE ratio in excess of 40+… in any sector. When I am working this hard to find long ideas, it should be telling us something.

No position

What the Heck is Going on During Mondays Lately? Always Up

admin — Sat, 21 Nov 2009 14:14:52 +0000

I’ve noticed Mondays have been very strong lately; the past few weeks government officials worldwide reiterated stimulus, money printing, and more stimulus – first in the G20 (2 weekends ago) and then in Asia (last weekend). But then I thought back and it seemed like every Monday we seem to walk in to things that hammer the US dollar, and the market soars. So I thought I’d look a bit closer.

Whatever (or whomever) is doing this, seems to love marking the markets up on Monday. Just by chance? Or am I data mining? If the pattern holds you should be buying hand over fist for “Monday Mark Up”… or at least covering any index short exposure. Considering we are sitting just over the 20 day moving average and we’ll be drunk in some announcement over the weekend that will cause the US dollar to sink…. odds are for another one lovely Monday?

I’ve cut back my index short upon noticing this trend plus the near term support level ….