Friday, March 19, 2010

Mad Resources

Work has been a little bit LESS encompassing, for the first time in 6 months. We're sort of hitting our stride. The focus has shifted to "how to continue hitting our stride. And how to hit it better."

As a result, I've been finding myself checking on my stock portfolio more frequently, as I like to do in the first available iota of spare time.

I've tinkered a little bit: There has been net selling lately. My cash position is outrageous, at a hint higher than 50% cash. I've also invested 20% of my portfolio in US treasuries, via TLT . I bought when such said equity was in the high 80's. I plan to hold, or sell in the mid 90's. I therefore have relatively little equity exposure. The market is starting to tank a little; I decided it was time to do some research.

Using a favourite analytical engine I screened for high market cap companies with good fundamentals that were on the move this week. I researched a few, but the epiphany struck me quickly into my analysis of the first one, TEVA.

The stock immediately grabbed my attention because of it's big jump this week, and the insanely good fundamentals. I also like pharmaceutical companies; it's a personal interest. My mouse shot over to another bookmark. With four keystrokes I pulled up a chart of TEVA and analyzed it in multiple time frames. The recent volume patterns, and the all time highs of XPH are further confirmation that the stock might be a good buy candidate.

Seconds later I had a stream of ideas, and real time action, on the subject, when I searched TEVA at A lot of people are buying the stock because they think it will benefit from a healthcare reform bill, as it turns out.

Apparently then, this stock, with great fundamentals and an impressive technical pattern also has a story behind it. I still believe that the market has a little ways down to go in the shorter and intermediate term. But this big cap stock might be worth looking at further as a potential long.

My real point though, lucky for you, is not my sub-par stock market logic. It is that because of the internet, I was able to get a very legit idea about a very real equity in real time. The relatively minute amount of action required (in part because of my awesome bookmark organization), and the quality of result are amazing to me. I feel empowered, as long as the power doesn't go out.

1 comment:

  1. Well said, I had a few hours to look at TEVA too, and it encourages me to buy in the dips. Last Friday, the stock traded up while most of the market were down. The volume itself was huge above the 50ma. If volume continues its upward, and the price breaks $64 and market shows no direction other than upside...I will pick up some shares.