Wednesday, January 17, 2007

Another buy in front of the impending pullback

I keep waiting for it and just never comes. That pullback came a little closer today when the Nasdaq chalked up another distribution day. We also saw some weakness in the leaders again, especially US Global Investors (GROW), which sliced through its 50 dma.

Well in the face of this impending doom I purchased some shares of Horizon Lines, Inc (HRZ). This is a shipping company that should be helped by the drop in fuel prices. What I especially like is the low volume pullback after its fantastic run last year. This will be kept on a short leash.

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