Sunday, October 7, 2007

China Plays

I picked up a couple of China plays on Friday. Both of them were from IHUB. CSCA applied for NASDAQ, and shareholders are currently voting on the acquisition of a profitable Chinese company. NOEC was the second China play I bought on Friday. Refer to my Wish List post for more information why I decided to pick this one up.

I reduced my position of TRMA by 40%. I was able to get 33.60 for it, which was very near the high for the day of 33.64. TRMA hasn't been that high in over a month. I don't like selling a position when it is on an upward swing and TRMA is moving up right now. It's made about 10% price increase in the past week. I did feel that I had too much of my money tied up in it for too long though. This is the third time I have owned TRMA in the past couple of years. It has a nice little wave that I like to ride occasionally to make a few dollars. It has pretty strong support in the 29-30 area (green arrows on the 2 year chart below), and will peak somewhere between 38 and 42 (pink arrows) before it heads south again.

I purchased it this time around when it was on an upswing (blue arrow around Sept 7th) thinking I would make a quick turn around. Unfortunately, I put my order in at night, went to bed, and spent the past month watching it test support and my resolve. I refused to sell it at a loss, because I knew it would eventually head up again, but when I got the opportunity to sell a portion of it at a profit, I took it. Now it's just a matter of waiting to see how high it goes. This is one of those stocks that I will use the way of the turtle method to find my sell point. I will be looking to sell it once it starts moving down off it's peak. I will expect to start watching it very closely once it hits 38, to see how high it goes before it turns around.

Anyway between that and my MVO post, I believe I am caught up on documenting my busy trading day on Friday.

Always perform your own due diligence before making any investment.

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