The biggest news out of my portfolio today (aside from the Sultan and C both retracing) was surprisingly... EATR! So is it going to be a chunk of junk or treasure hunk? It remains to be seen. The so-called upwards price action of +100% on the day was based on volume of only 500,000. On penny stocks with outstanding shares of over 2 billion, that's very negligible. It's all relative, isn't it? Just because there's 2 million volume on a penny stock that's worth $0.0001 per share, doesn't mean there's a lot of moola behind the move.
A good site I found on penny stocks is OTCMarkets.com, which I combine with market research from my BFF equities broker, E*Trade with stuff I find through my BFF perennial favourite research resource, Yahoo Finance, to make my bimbo trading decisions.
This week, I've got one goal: to take profit on one or two positions. I am going to force myself to do so, otherwise I'm no better than a market spectator, which I have really admittedly been throughout 2010. In 2011, I'm reinventing myself and I'm going to be a quote unquote successful momentum player!
I missed out on that nice move with BAC since I was trying to outsmart the market, but I'm not going to pay a lot for any mufflers anymore.
What I learned about momentum today is something elementary once again. The high beta stocks that I trade move faster than the market. So any time there are signs of stagnation going on, it's time to take profit. And when they start moving faster than the market, it could be time to start getting into lower beta stocks or even more of the high beta ones for some extra credit since the movement of the high beta stocks could then be considered a leading indicator of sorts. I'm testing out this new theory of trading relativity!
Relatively speaking, my portfolio was an underperformer:
+1.47% on the SBA
-1.47% on the Roth IRA
C you at $5 again soon? LOL.
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