Friday, April 22, 2011

Earth, Sun and the Moon

I live in this half spherical dome
Painted blue from the inside,
A ball of red fire rises from one corner daily
that we call the sun.
It goes all the way across the diameter
When the ball sets down
Another soft white ball appears
That we call the moon.
The blue dome become sprinkled
with spotty shining spots we call stars
and the moon dances in between them.
Every day the same spectacle appears.
Oh, the rising and setting of the fire ball
and the mingling with soft vapors called clouds
makes such beautiful patterns and color mix.
The dome takes orange, violent and ash colors
All this is possible because of the great fire ball.
Sun!!! I am in love with you.
When the soft clouds get heavy with moisture
they form colorless liquid drops that fall
on the solid ground called Earth.
On this ground is where I live.
This spectacle we call as raining.
When it rains the sun is hidden behind the clouds
It gets too dark and when the clouds
have exhausted themselves
the sun comes out from hiding.
The sun and the clouds play the
hide and seek game.
Mostly we people are busy with ourselves
on earth but some fall in love
with these spectacles happening everyday.
Everyday the great Sun brightens the day
These hours we call morning.
There are some flying winged animals
we call birds and there are green solid
semi conscious fixed woody beings
we call trees.
All nature is so happy with the coming of the Sun
It is beyond description
Lately, my body is responding
to Sun just like a bird
who sings soft tunes in happiness.
Like a tree fresh from night sleep.
My body when touched by those
beautiful rays of light and warmth
responds to the grace with love.

All nature is connected by this
inner divine feeling called love.

I thank thee for giving such peace
when love is missing the being
dries up like a waterless seed.
Love is like water to the seed.

When the sun sets on the opposite of rising
the stars slowly take off their mask
and shine and dance.
Some fall in love with the moon and stars.

The light from stars
takes several years to come to earth.
Our dome become dark and has deep
penetrating eyes.
The more one gazes through it
the more deeper it gets.

But I say that I love Sun the best.
He is the supreme being.
Without him nothing is possible.
He is the Supreme Lord.





Thursday, April 21, 2011

URI is following the rules

URI crossed the 30 moving average with high volume on the downside. It is entering the start 4. This is the optimum time to short a stock. It pulled back to form the shoulder on the right of the head. It is the typical text book formation of head and shoulder. I shorted heavily on this stock at this price of 29.5.

I am expecting it to go down to 23 in a couple of weeks. There will be some pull backs on the way. All one has to do is hold the stock until it is below the 30 day MA. Put a buy to cover, stop limit , 5-6 % above the 30 MA.
Only some stocks go, and cross the 30 MA depending on the volatility of the stock.

In this case URI is not that volatile that it crosses the 30 MA. So hang on the ride down dude!!! This stock should help me get out of the recent losses into the fertile profit area. And the profit will be good money. Please do not mess up this text book case man.

1d5d10d1m3m6mYTD1yr3yr5yr10yrMax
Print chart


Wednesday, April 20, 2011

Some shorting oppurtunities and many stocks at their very highs

Shorted URI and NOG. have to wait a week to see what happens. They are in the down ward direction.
Market did well today.

URI formed the head and shoulder formation and the historical data shows that this stock has fallen several times before after reaching 30 range.

Many stocks are on the top levels. There are many with good fundamentals like fossil, netflix etc. But there are also stocks hitting tops and coming back. Like Riverbed, NOG , URI and Jupiter networks. These are in Phase 4.

One has to buy stocks that have very strong fundamentals at the top otherwise it may start coming down. Fossil and SHS were good buys that i messed up.

Any way just have to wait. Nothing to worry. Put the buy to cover, sell stop order and just wait for the stock to fall. 

Tuesday, April 19, 2011

NOT HOLDING SYNDROME: GREAT LOST OPPURTUNITIES

CMG
PCLN
RVBD
PPO
VRX
TPX
APPL
BIDU
HS

GREAT LIST. Why did I sell it out?? One reason is to cash out  15-20 percent above 30 day moving average and most of the cases, whenever the stock moved up, it went 50-60 percent up.

Hmmmmmm. Need to rethink about the whole strategy. Follow the basic instruction the book Secrets of profiting in Bull and Bear markets. The book does not talk about continuation rally and other patterns but the basic idea of holding above 30 day moving average is so important.

Any way I had to learn the hard way. At least now I know, the reason why.  Stocks can consolidate 50-60 percent above the 30 day moving average so do not sell. Just keep holding even if there is a correction of 10 percent. Buy at right points and keep holding till the stock comes 7-8 percent below the 30 day MA.




Selling 15-20 % above the 30 day average in a rally

When to sell and when not to sell to get into safely and cash out.

1. It is good to sell when you think it is the end of the rally and there is a lot of speculation going  on. This should be the only reason to sell the stock.

2. My selling BRKR at 20.8 was good because after correction it came back to 19.5 and I bought it at 18.8 when it was close to 30 day moving average.

3. My selling VRX was a horrible thing to do even though I made a profit at 44. 5. This stock when to 53.

I am making this blunder and it has cost me several thousand dollars. I was right on VRX it is an excellent stock but did not hold it to get all the gains. I sold it prematurely to cash out profits. Fast moving stocks can go more than 30 percent sometimes and consolidate at the top. This has happened with best stocks like VRX and BIDU and many others. So it is a mistake to sell it even if it is 15-20 percent above the 30 day moving average. It is unpredictable and it is good to just hold it and learn to hold stocks.

Not holding stocks like CMG and many other stocks cost me several several thousand dollars till now.

Ofcourse I did not understand what was continuation rally in the case of Riverbed and Polypore and also Chipotle. I am still learning.

Especially when the stock is in continuation rally, I observed  that it consolidate far from the 30 day moving average. The primary rally is slow and bordering the 30 day moving average but the continuation rally is rapid after the usual cup and handle formation. One should never sell the stock just because it is 15-20 percent above the 30 day moving average. It is a blunder to do so. Example is LULU and SINA and BIDU. All of these and many others consolidated 30-40 percent above the 30 day moving average. Even VRX that moved from 35 to 53 .That is like a 60 percent move. What a move!!!!!! Great. I missed it because of misunderstand and not holding the stock. The stock can consolidate much much above the 30 day moving average.

Learning learning. So never sell except if stock comes 7-8 percent below 30 day moving average. This will save you many thousand dollars profit.




Similarity between BIDU and SINA and LULU

BIDU one of the growth stocks of this year is a stock that needs to be studied. When there was recession it went down to 10 dollars on  June 9 th, 2009. Now it is at 150. What a stock!!!!

Coming to the details, the stock went up to 40 from 10. Then it consolidated there for some time. Then the extended continuation rally began. The stock moved from 40 to 70 dollars. Then it consolidated there for one month from May to June 2010. Then it took a cup and handle formation and moved to higher and higher to 80 then to 100. It consolidated at 100, for a couple of weeks. Formed a solid base, then moved to 150 now.
One of the best stocks that moved in from of my eyes.

Now come SINA, it has a similar graph and is in the same sector. Also LULU has a similar graph. They both may not be such big winner as BIDU, but there is ample chances that one of these stocks will move higher and higher.

LULU formed a big base at 40 dollars, then broke resistance and never looked back. Now it is at 100. I think now they moved 20 percent and will consolidate for a couple of weeks and move again another 20 percent. These two stocks need to be in close observation along with BIDU.

These 3 stocks are a good buy even now when they consolidate on the 30 day moving average. Go for it dude!!!


Choosing simple model and golden rule

When there are many stocks to choose from, it is best to choose a model that is easy to follow. For example, the model I choose for HOC is complicated. Instead I should have chosen JAZZ.  It is in its first phase of rally. Not even in its extended rally.

I remember not understanding the continuing rally in Riverbed and Polypore and losing a lot of potential profits.
The best thing to do is choose stocks still in their first phase of rally and moving smoothly over the 30 day moving average with regular dips on the 30 day average. This is the simplest model to deal with. At least when I invest other peoples money I should use this model.

There are many stocks that doubled with this model like AZO, DLTR and many more. Today I found
JAZZ and ALXN.

I saw Jazz when it was around 29. Now it is 34.5. Hmmmm.

Endo is a big gamble. Lost money on it. It is still above 30 day average, but it has a history of not following rules. I should have observed the history carefully.

250 K is the target dude. When will you make it??? I may have to short a couple of stocks to get my money back like 6 K . Shorted NOG at 23 , will cover at 22. Have to do that a couple of times.

The Golden Rule is to always buy on the 30 day average. I didi not follow the rule with Endp and HOC, guess what, lost money.