Despite lovely gains in the stock market, the I.N. makes giant mistakes to learn from. Want a sneak peak at how the I.N. thinks when eyeballing all the information out there dredged up by the Data Miners and the new Scottrade brokerage account?
Since the start of the year 2009, everything is gaining in ALL markets. You could have invested in your damn shoes in FEB09 and quadrupled your money by now. So always think one to three months when watching the I.N work stocks.
Day trading is for people who want heart attacks and crushed social lives where friends gossip, rightfully, behind their backs. This said, the Info Ninja loves NYSE, S&P and Nasdaq stocks at one-third their 52-week highs. 52-week high is $11 and today it’s $3 or $4 bucks? Excellent! Buy and Hold.
This can go horribly stupid. PLLL was just such a stock when that afternoon it sold a controlling share to an investment group that will re-manage and, hopefully, return profits. So all trading came to a dead halt. oops.
GAP 52-week is about $12. History shows giant, undulating waves of value this past year dipping as low as $3.10 and getting as high as $8.49 It seems like GAP is afraid to just get back up. But a lively, three-month long $5 dollar spread is pretty, friggin’ cool! So, wait for stock prices to dip again to $4.50 Once again, horribly stupid happened and, at the time of writing, is still happening – see the picture below!
Despite buying the frozen PLLL and missing out on what would now be $2 dollars per share on GAP, we’re still pulling about 5% a week in gains while the market is expanding towards the holidays. The research continues – just thought you’d like to see what was going on behind the scenes.