Wednesday, August 5, 2009

Bookkeeping: Stopped Out of Quality Systems (QSII), Adding to TriQuint Semi (TQNT) and Skyworks Solutions (SWKS)

A very strange day - financials, especially those rescued by the government are flying today - everything from AIG to Fannie Mae to Bank of America. Meanwhile technology stocks are weak by and large after being the markets favorite for weeks. And somehow I've been stopped out of 3 long positions. (Looks like Ocwen Financial (OCN) was pummeled since I sold it yesterday morning)

Won't try to explain it, there is no explainin' anymore. This is what the algorithms are doing today - respect it. Our 4 hour correction is over and its time to cream some bears it appears.

I had a stop loss for Quality Systems (QSII) outstanding but mistakingly it seems to be for the entire position, I had been planning on keeping 0.1% around. Apparently the whole thing went early this afternoon. This company reported a pretty bad earnings report but for some reason was not affected by it at first. Now it seems to be. The stock fell from $54 to $53 first thing this morning and since then has been churning in the mid $52s to $53 area... we were stopped out at $52.85. A close back above $54 would negate the bad formation forming and let me stress again the overall stock market is 70% of the story nowadays so if we begin a new leg up this stock should reverse back through the line it crumbled under this morning.

TriQuint Semiconductor (TQNT) finally fell to a support area ($6.50) - so I am increasing from my starter stake of about 0.2% to about 2% as we hit the 20 day moving average. I'd much prefer to buy lower but I am trying to be somewhat bull oriented and finding something to purchase.

Similarly Skyworks Solutions (SWKS) is also weak today and is back at its 20 day moving average ($11.50) so I'm adding 1% to our 2% exposure.

With both TQNT and SWKS if the market corrects (don't laugh) - I'll be paring these if they fall below the 20 day in a meaningful way since there is a lot of hot air between the 20 day and 50 day. I'd much rather be a buyer lower for both.

Buying the stocks dipping to support really has not been the way to win of late - you want to buy the stocks running away like mad nowhere near support as they seem to go up in relentless fashion. Sometimes the way you invest is in vogue and sometimes not. Pure momentum guys are running the market right now and that's not my style - but if you want the fast money you want stocks making new highs and nowhere near any support line... those are unstoppable right now.

Long TriQuint, Skyworks in fund; long TriQuint in personal account

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