Monday, November 27, 2006

Sit back and watch

Big drops like today are so much easier to take when one has money on the sidelines waiting to be put to work. Unfortunately, some of this money was put to work a little too early. I had put in an order to buy Lam Research Corp (LRCX) after the recent breakout last week. I was down in the lab all day and didn't see the big sell off today. Needless to say, my limit order was filled at 54.05. Oh well. I put in a stop loss at 51.90. I doubt it will hold. It looks like we are in for a nice pullback and LRCX is bound to get a lot cheaper.

Flotek (FTK) dropped less than 1% on very light volume. Very Bullish. I'm tempted to buy more very soon.

AllianceBernstein (AB) pulled back 2.56% on moderate volume. It looks like it might get down to area 72.50, where there is nice support. The bullish sign for AB is found in the 5 min chart. It make its largest price decline on the lowest volume of the day and then rebounded somewhat on heavier volume. I like that.

Gold is up nicely the last few days. I originally purchased shares of the gold ETF because I'm worried that inflation is worse than is generally accepted. The dollar weakness has definitely helped this position.

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