Petro Engineers and Stock Trends
July 26th, 2005 by BWV
3 refinery builders, 3 charts in solid uptrends. I’m long all 3 at the moment.
I generically define a stock in an uptrend as having its 20 day moving average (avg closing price for last 20 days) being over its 50 day moving avg, and the 50 day being over the 200 day. This is logical.. those simple facts illustrate the fact that the stock is in the process of going up.
The charts of most - if not all - of my long holdings fall into this category. I have no intention of buying any “bottom”.. as that would mean buying well before a downtrend actually reverses. Who am I to know exactly when a major trend change is taking place?
Because no one is given a medal for buying the bottom tick or selling the top tick.. and it can be expensive to attempt to do so.. I prefer to play trend continuations.
I bought some FLR today for a Swing move, in addition to the Long Term holdings. JEC I’m letting ride in LT accounts, and will be looking to add some shares in the near future after a nice earnings release today.. and market reaction . Also doubled up on FWLT recently for a Swing trade, while LT holdings there remain in place.
