Phantasmix Stock Blog

I’m itching to buy stocks (add (LYG: 4.30 -0.46%) and open (AZK: 4.91 +1.24%)) but everything looks so terribly overbought. Arghhhhh

I’ll wait, although apparently some very smart people say a runaway move may be developing.

The problem is I’ve never traded a bull market before. Would a one-day drop qualify as a correction?

Volumes today are lower than the 3-month averages, though. Maybe there’s hope for a better correction yet.

I was holding SPY calls since January 2010 and LYG since December 2009.

I sold SPY calls on Friday and made about 2%, which is of course, nothing to brag about, but I’m still struggling with timing options. Soooo… I’m happy to get out mildly positive/flat.

LYG (international bank, money center) is my only open position and I’m currently in the black on it. I plan to add AZK (profitable junior gold miner) when it corrects.

Will keep scanning charts, maybe I’ll find something more interesting than AZK. But for now, that is the plan.

Earth Lights, Earth at Night
Click to enlarge

I was looking for a gold miner that was profitable (P/E positive) and under $5 a share. Then I looked at the chart patterns, because I want as many favorable factors as possible. Then I looked for the latest news briefly, I don’t want to study it in detail but again – the more positive factors the better.

Aurizon Mines Ltd.(USA) (AMEX:AZK) is the 10th most profitable stock in the precious metals segment of the market. Its net profit margin was 20.91% for the last 12 months. Its operating profit margin was 32.70% for the same period.

Entry: $4.40-4.60
Target: $7.00
Stop… what stop?

AZK Performance vs. SPY vs. GLD

Pretty good, seems to take corrections well and rises faster than the general market and gold.

Last quote: (LYG: 4.30 -0.46%)

So far it’s been rising steadily with tiny corrections along the way and filling most gaps. There’s an open gap around $3.50 which is where I think it may go. It looks overbought now. LYG can still keep going up but a correction to $3.50 wouldn’t be out of the question IMO.

Then it can go on and build an inverse head-and-shoulders (a pattern that worked so amazingly well on (BEE: 4.54 +3.89%)!)

Click to enlarge

7 days ago I put together a list of what I thought were potential doubles.
The criteria was: price under $5 and above 50MA, market cap $200MM+.

Since then I’ve decided to pair down that list. I’ll “release” them as I gather more info

Here’s a couple of my “potential doubles” picks:

(LYG: 4.30 -0.46%) Lloyd’s Bank, still like this one a lot

(SPP: 4.72 -1.46%) Sappi Limited

By the way, what’s up with (VVR: 4.62 +1.76%), Van Kampen Senior Income Trust?
It’s a closed-end income fund, with a 6% yield. I like how it’s rising. Do I have to be a senior to buy some? And if it’s closed-end does it mean it’s closed to new investment? Here are the fund holdings.