5/30/2006

Volatile market requires greater trading skills

The market have entered the high volatility phase and the risk is higher. In a trending market like the one we saw for last 3-4 years it is easy, buy all pullbacks or breakouts. Now a more selective approach is required. Timing entries and exits on both long and short becomes more critical in such volatile environment. Stock selection becomes even more critical. Risk management and average trade size and time frame all need adjustments. If you trade diversified basket of markets then there are great opportunities in other markets like bonds and currencies currently.

Stocks up 50% or more in a month
IFO,Infosonics
MED,Medifast Inc

Stocks down 50% or more in a month

DHB,Dhb Industries Inc
DOVP,Dov Pharmaceutical Inc
ERS,Empire Resources
ESCL,Escala Group Inc
FLYIQ,FLYI Inc
NBIX,Neurocrine Biosciences
THLD,Threshold Pharmaceuticals

Stocks with all time high volume

CMOS,Credence Systems Corp
LOV,Spark Networks plc
PBJ,PowerShares Dynamic Food & Beverage Portfolio ETF
XTLB,XTL Biopharmaceuticals ADR





Round up

Britain's most famous portfolio manager is a closet chartist.

The media-shy Mr Bolton, who runs £6.5 billion on behalf of a quarter of a million Fidelity Investments clients, said that he used charts to time his entry into some investments.
Chartism, the study of past patterns in stock prices to determine investment decisions is regarded by some investment purists as mumbo-jumbo and a waste of time.
However, Mr Bolton said: I've found charts very useful, particularly on bigger companies, especially for timing. When the technicals confirm the fundamentals, I use them in that way.
Charts were also useful in preventing him from buying into a blue chip too soon, he said. To be too early on a stock can be costly. It's a healthcheck. It's a bit like going to the doctor.


Easier it is to say a company's name, the more attractive it will be to investors claims a new reaserch.

All bubbles burst eventually. The newcomers to market take the maximum brunt when it happens. In the beginning there is shock and disbelief and then a hunt for scapegoats.


The newspaper industry is in trouble and long time bullish media analyst from Merrill raises alarm. Might be a good contrarian bet.

After writing about stocks for 28 years for Washington Post, Jerry Knight is buying his first stock at the age of 63. Imagine a food writer who does not cook and a travel writer who never travels.

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