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Momentum Investing...

These are trades we have called in our chatroom. They are a bit longer-term, intended to build portfolios a bit more slowly.  They are ideal for those who don't have time to daytrade, but still want to use momentum to build their savings.  

Sometimes a swing trade. Sometimes a trend trade. Sometimes a long-term investment. Always a tight control on risk, and always following the momentum.

Questions?  Email Gimmie or Ken

 

 

These are our latest Momentum Investing picks:
 

  Avis Budget Group: CAR

Entry:  November 3

Reason: Technical.  Had all the elements of a Cat Signal. 5 MA turning up, %D in bottom territory and turning up. A spike in %K. OBV coming up off the bottom. 
Stop:  Any break of 8. It had been hovering there, finding slow support. So if that breaks, down it goes.
Target:  Our target was either the "MA test", when the 5 MA turns up and touches the 15MA, or a move to the 50MA.  It first needs the 5 MA to cross up above the 15MA though, if it has a chance of reaching the 50 MA.  Look at the way it topped in October and you will see what I mean. So around that MA test, one has to decide to either "Trail or Bail".  Take conservative profits, or trail a stop up and watch for the cross. 
 
  Allied Irish Banks: AIB
Entry:   November 3
Reason:  Technical.  Had all the elements of a Cat Signal. 5 MA turning up, %D in bottom territory and turning up. A spike in %K. OBV coming up off the bottom.
Stop:  Any break of 4.28, the low on November 3.  To be trailed up as it rises.
Target:  Our target was either the "MA test", when the 5 MA turns up and touches the 15MA, or a move to the 50MA.  It first needs the 5 MA to cross up above the 15MA though, if it has a chance of reaching the 50 MA.  Look at the way it topped in October and you will see what I mean. So around that MA test, one has to decide to either "Trail or Bail".  Take conservative profits, or trail a stop up and watch for the cross. 
 
   
Legacy Reserves: LGCY
Entry:   November 3

Reason:   Fundamental.  This is a pick from bruce, our resident oil investor. 


This is a very small firm that acquires used oil and gas property in Texas- properties on which a lot of the oil has already been sucked out of the ground.
Old oil properties don't produce much oil, unless you know how to get it out.
The gov't lets you depreciate the property as you remove the oil from the ground. Its a racket.

But the best part is, its paying 13% dividends. 

Target:  It has already gained a dollar since entry, but this is an investment he intends on holding for years, not days.  Its really about the 13% dividend payout, so we don't even have a target.
     
 
 
 
 
     
 
 
 
 

 

 

 

 

 

 

 

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