Friday, March 23, 2007

Trades: SBGI, CELG, VDSI, SMSI, RIG

Yesterday, I sold 500 VDSI at $18.24 for a $285 gain (+3.2%). I am still holding 500 shares.

Yesterady, I sold 500 SMSI at $16.42 for a $230 gain (+2.9%). I am still holding 500 shares.

Today, I sold CELG at $54.90 for an $830 gain (+3.0%).

Yesterday, I bought 500 RIG at $80.30 and sold today at $82.30 for a $1000 gain (2.5%). I got lucky on this one.

I bought 500 shares of SBGI at $15.23. The trade is detailed below.

The RIG Trade:
As just about everybody has over the past week, I have been watching oil drillers very closely. While there have been nice moves, very few were trading around support or resistance levels. RIG is one of the exceptions. It formed a "W" double bottom formation and was nearing resistance of this formation at $80. I placed a limit order at $80.10 Wednesday night.

When I checked quotes about a half hour after the market opened Thursday, I saw that the stock was trading at $80.79 without gapping up and assumed I was in at a good price. However, when I checked my portfolio, it wasn't there! For some reason, my order had not gone through. I was royally pissed, as I saw a lot of potential for this trade. As a last ditch effort, I placed a limit order at $80.30 and hoped the stock would pullback. I checked again in the afternoon and saw that it was trading close to $82, and just assumed it never pulled back. It wasn't until much later in the day I realized it had pulled back for a very short period and I did get in at $80.30. My bad mood instantly reversed itself.

SBGI has printed two NR7's in a row (lowest range day in the last 7 days) and is nearing near term highs at $15.50. The stock has been under accumulation during the recent consolidation of its gains as well. This is an early entry before breakout, which I sometimes do if the stock looks really good technically and prints an NR7.

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