Happy New Year! 2006!

I am looking forward to a challenging and exciting investing experience this 2006! My New Years Resolution to you is to make sure that I stay on top of my game and give you some good investing ideas for 2006. Remember, I am starting out with $50K. I already made one losing decision by buying CAG and selling at a small loss. I am out of that and have no holdings now. We are going to have other losers in 2006 I am sure! The important concept is to make sure that our losers are small and our winners our huge!

So, to you and yours - Happy New Year! Lets make some $$$$$$$ !!!!!!

Jeff

Last Day of Trading for 2005!

DOW 30

So today was the last trading day of 2005! I was pretty much removed from the market today. I was over at Wal Mart buy some tee shirts for 2006! I noticed a few things today.

AIG - hit resistance at $69
CAT - hit resistance at $60
GM - Bouncing off support at $18. I would not feel comfortable owning thing one. I know there are too many problems. Will be very erratic!
JNJ - hit support at $60.
KO - I actually sold this a couple weeks back. I had a few shares from a gift a long time ago (like 13 years). Anyway, the 1980's and 1990's. KO is facing great competition and their management is weak. Lets move the money into something with better chances.
BANKS - JPM and C - hit resistance too.

Misc.
RTN - Hitting new area highs. Keep an eye on this one. Lets look for any signals of a short play.

My Xmas Present - Siri

I received Sirius Radio for Xmas! It is a gift that I would have not bought myself but I really am enjoying it! Great selection of music and no annoying ads! It makes listening to the "radio" enjoyable.

I like it so much that I was tempted to buy the stock. Remember one of those axioms, " it may be a good company but not a good stock." Something like that. Looking at the chart I see that $8 mark is pretty meaningful. If the stock moves above that mark with some power, it may be worth buying into. Otherwise, it could flounder a bit.

Slow Days

So, I did sell CAG yesterday. I really did not have a choice. The market is waiting for more info about how CAG is going to turn things around. I had no choice.

I am keeping my eye on a few stocks though - HNZ, CMCSA, RSH. These stocks look interesting in that something could change and a true could start.

as of 12/27/2005

CAG

AM

Okay, I am getting concerned with CAG. If there is more weakness in the stock today I will have to sell. The idea is to protect your capital and let profits ride. My feeling is that there may be too much uncertainty in the stock now. The market was hoping for more from the CEO last week and they did not get what they wanted. March is when more detailed info will come out. This could be a problem!

UPDATE
CAG was sold today at $20.26. I would rather step aside and wait for the CEO to get a plan together and join in when the others do. The market was expecting more than they got from the new vision.

Note: Bought at $20.89.

Merry Christmas from me and one of Santa's Helpers at Public Co$ !

Slow day CAG is held

A slow day, I am sure most of the heavy hitters packed it up and went home until 2006. I am still holding CAG even though it dropped below my stop target. First, with such light trading I did not think this was a great day to sell. Also, this stock had major support at the $20.30 mark.

As time moves ahead and this stock is still sluggish, I won't waste any time selling it. I must say that I was expecting a pop in the stock that has not occurred.

Hard Day for CAG

CAG had its analysts quarterly earnings report today. There was a sell off but the stock is still being held. If the stock goes below $20.47, then I will sell.

WFR - oh that hurts - like CAG

Did you see MEMC today, up $1 on the open! Yesterday I sold the sucker. You really have respect the markets. It can drive you crazy if you let it. Remember, this is a huge learning process and admission is expensive!

I bought CAG today at $20.89. Please see my trade portfolio for all my action. I am starting my 2006 concept before the New Year! Money never sleeps.

Oops on WFR

I sold WFR this AM. You know, that really irked me. I went into MCD and made a pretty good trade. I knew what I was doing and liked the set up on MCD. Made some money and then went into WFR. I did think the stock could shoot up but I think was really rolling the dice. I sold at a loss and I feel stupid that I rolled the dice like a fool. No excuses...

TRADES FOR 2006

as of 12/23/2005

I keep forgetting

Who said investing was easy. Right when you think you are learning, you start forgetting. In search of the Holy Grail, as some would call it, you forget what "works." Now, what "works" for me is different than what "works" for you.

Remember -
1) Be Patient
2) Don't Get Fancy
3) There is no such thing as a perfect trade or investment (you make money or lose money)
4) Keep an open mind

Right now, I do not have any trade ideas. I have my eyes open.

UTX IS STALLING

Looking at todays close of UTX does not make me bullish. Is it time for UTX to rest after its huge run up? The odds say YES!

I thought so - DPZ has a large stone tied to it.

Just for S and Gs I went to an Insider Trading website to see if Dominos was was being dumped by the VCs. Take a look for yourself. I would wait until you see DPZ trade over $25 for a few days before buying. There is a lot of overhead supply and I am not privy to Bain's trading book so I don't know what their plans are. You may want to stay the hell away for a while.

Flat for the day

I guess many are waiting for the Fed to meet and do what they are expected to do. MEMC moved up a bit today. I am still long that one.

In other ratings moves, Morgan Stanley upgraded United Technologies (UTX) to overweight from equal-weight, as the broker believes the company isn't getting enough attention for its aerospace upcycle. United Technologies was higher by 13 cents, or 0.2%, to close at $55.55. OK, I don't understand this comment - I mean take a look at the chart of UTX. The stock has moved from about $50 to $56. The stock seemed to getting attention to me. The stock did move through major resistance and continues to move up.

A Tough Week!

"We're going nowhere fast because we don't have a lot of meaningful news," said Paul Nolte, director of investments with Hinsdale Associates. "We've been left to trade on interest rates and crude oil, both of which have been very volatile."

Traders are now looking ahead to Tuesday, when the Federal Reserve is expected to bump up fed funds by another quarter-point to 4.25%.

My Thoughts

I have to agree. I bought some MEMC (WFR) at $24.15 and saw the stock head south pretty fast after that! I still own it though. The word is that demand for the chips is here. However, there is a silicon shortage, which MEMC can produce. So the stock should go up. See chart here. I feel the buyers are still around for this stock. This past week was pretty volitile but I feel that was due to Intel coming out with news and the market unsure of what to expect. If there is weakness in the coming week, MEMC could be done for a while. Time will tell.

I bought some MCD last week at $34.14 and sold at $34.99. MCD is have a hard time getting past the $35 mark. I like their Chipolte IPO but I don't want to hang around just for that. I am waiting to see if this stock can trade over the $35 area on good volume.

The New Format Is Here In 2006

For those of you who read my blog, I thank you and hope I might have a couple interesting things for you to read. Also, for the year of 2006, I am going to keep track of a portfolio that starts with $50K. I am not saying whether the money is real or fake, I will let you decide. I will also disclose all my "moves" and let you see my performance and diary notes on a timely basis. I can't wait to begin!!!

Price Resistance -

Looking at a few charts and it is quick noticable how stocks will hit resistance at round numbers. For example:

Dominos = $25 - I think it is Bain Capital selling at that level.
AIG - $70
AXP - $53
BA - $70
CAT - $60
C - $50
GE - $37
HPQ - $30
IBM - $90

Anyway, I think you get the point. I never realized that these price points were so strong. Something to think about when you are about to buy or sell.

the Semiconductors

Much has been said about the semiconductor and the shortage in silicon for the wafers, I guess we are waiting for Intel to come out and give us some news today. I am waiting for the semiconductor stocks to take off and not look back. I remember when the cycle were so crisp and clean that you could just buy and hold until the cycle was over. Now, there are a lot of false starts it seems.

Remember: Bulls live above the 200-day moving average while bears live below it.

Cramer and the financials aka banks

Last night I started to watch Mad Money and Cramer started out with a lecture on buying the financials or buying one good one. I had to shut off the TV because I have been watching the financials (JPM and C) go up for the last couple weeks! Come on Cramer! We knew about this a month ago!

Anywho, Cramer has to do a TV show and talk about something.

Also, only 15-20% of stock actually will trend. Something to think about when you are holding onto that stock that you hope will go to the moon. Should you sell?