Tuesday activity
June 28th, 2005 by BWV
An article in today’s Wall Street Journal details the strong fundamentals of the Energy Infrastructure companies, of which Foster Wheeler (FWLT) is one. For long term accounts, I am long Fluor (FLR), Jacobs (JEC), and Technip (TKP), in addition to the FWLT i added yesterday.
Speaking of adding, I added to my FWLT position as it started to break North this morning.. got some at $17.55, and getting ready to add a little more here near $18. Volume is huge already at 11:15 a.m. I added stock in both my Long Term (”LT”) accounts and Trading account.
I should probably note that most of my discussion here will have to do with Swing Trading — what I do to make a living. A good Swing Trade can last from 1 day (pretty rare though) to about a month maximum. However, I do not “buy and hold” for the entire duration of the trade.. I attempt to enhance the returns of the basic swing move that I’m targeting by Scalping & Adding on intraday volatility.. Much more about this later, of course.
Index-wise, the markets are bouncing a little after a brutal past 4 days. 10,646 was last Wednesday’s high, and yesterday’s low was 10, 253.. a nearly 400 point selloff in roughly 25 hours of market activity. So it’s not surprising to see some sort of bounce here. I expect this little recovery to continue possibly into tomorrow, then sell back off before the Fed announcment at Thursday 2:15 pm. The advance/decline line (”breadth”) is +1350 on NYSE and +1100 on Nasdaq — pretty strong.
I am not playing any indicies but am using this (for the moment) healthy trading environment to hunt for strong stocks with shallow pullbacks from fresh 52 week highs — during the time the Dow has gotten hammered.
