Bookkeping: Adding to Shaw Group (SGR)

As a reluctant bull I am having a hard time finding much to buy. Most of my favorites are well into extended runs (which many people like to buy i.e. stocks making new daily highs) but I prefer to buy stocks nearer to support levels. Since I like the infrastructure group and one company that has not make a recent run is Shaw Group (SGR), I will be adding 150 shares today ($10K) to the 225 I had previously, and move Shaw Group to a 2.0% position. You can click on the label for this post to see previous posts on Shaw Group, essentially I am adding as a technical purchase. The stock broke through its 50 day moving average last Thursday, and despite a mixed earnings report tried to make a run, but has now pulled back to the $65s range. It has support just under $65 (50 day moving average)

If we see a breakdown below this level, then I'd probably make the position smaller again until the market is ready to take the stock up. I do like the fundamentals and the backlog is just enormous. However the stock has been lagging the group by a large margin; much like McDermott (MDR) was until the market decided to get back on that train.

I am trying my best to apply this big pile of cash but not much is really pulling back to areas I am interested in buying. Again, if I were buying stocks making new 52 week highs, there would be a lot of great stocks in my universe to pile in... this certainly can work as a thesis of investing as well. The overall market action is 'constructive' and would indicate to me, someone in the know ... knows we are going to have some serious actions coming down the pike tomorrow. Could always be wrong but this seems like a market just waiting for a dose of helicopter droppings.... if I were totally ignorant to the economic situation and just looked at charts, this would look like a market ready to take off. Hence I am trying to erase as much of what I know (temporarily) and just suspend memory of the economic background so I too, can enjoy the kool aid.

Long Shaw Group, McDermott in fund; long Shaw Group in personal account