Wednesday, October 10, 2007

Noteworthy events for my portfolio

While the dow dropped today, my portfolio increased by 1.42% today. That's over 500% annualized, if that type of increase was sustainable all year long.

Anyway, I wanted to document a few stand out events that are occurring for some of my stocks.

Starting with TRMA, this stock finally broke through the resistance it has been feeling at $34.00 today, to end the day at $34.30. This is the break through that I have been waiting for. While there has already been a bit of a pull back in after hours trading, I am staying optimistic that this is the beginning of the run up to the low 40 range for this stock. I have revised my support level on this stock to 31.85, and see minor resistance at 37 and 39, but then nothing holding it down until it hits around $43. Even with the sell off the other day, a decent portion of my portfolio is riding on this stock.

CSCA first caught my eye on IHUB and so far is not disappointing. Since 10/3 it has made new highs each every day except for Monday, though it did match the previous days high. While it tends to close quite a bit lower each day than the high, it is still moving up at a consistent rate that I am quite pleased with.

For sheer volatility, NOEC is unmatched in my portfolio. Intra day swings have been crazy!

10/1 5.83 - 6.98 O 6.10 C 6.64
10/2 6.26 - 6.90 O 6.57 C 6.26
10/3 6.50 - 8.81 O 6.60 C 7.945
10/4 7.83 - 9.60 O 8.50 C 8.50
10/5 7.49 - 8.80 O 8.71 - 7.65
10/8 7.25 - 8.19 O 7.88 C 7.84
10/9 7.31 - 8.19 O 7.31 C 8.19
10/10 7.56 - 8.74 O 7.57-8.20

Since the beginning of October, it has been at or below 7.50 6 times, and at or above 8.70 four times. While risky, this shows me an opportunity to make some money based on this intra day volatility. I have put in a sell order for my shares at 8.70. Once it sells, I will place a buy order for 7.50 and try and ride the price up again. That is a 16 percent gain each time I can capitalize on that price move. I'll keep you posted on how that works out.

Well, that was a lot of good news, now for the bad news that should be good news...PCU.

The number of mistakes I have made since I first saw this stock are astronomical. I talked about some of them in another post. My most recent mistake was to sell Covered calls against the PCU stocks that I had owned.

You see, historically, October is the worst month in the stock market. I had accumulated some shares of PCU since my last blunder sell of it, at an average price of 105.72 per share. Since October is historically a bad month for the market, I decided to sell covered calls against PCU to make a few extra bucks. I sold the 120 October calls for $2.40. PCU is now at 135.46 per share, and the calls I sold for $2.40 would cost me $16.00 to buy back. This is a very hard lesson learned, and while I will make money when those options are exercised on October 20th, unless something crazy happens in the next few days, I will be selling those shares for much less than they are worth.

As I said the last time I posted about PCU, the chart shows no signs of slowing down.

Special note to PCU: On my honor, if I ever have the opportunity to own you again, I promise to treat you right!

Always perform your own due diligence before making any investment.

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