After dinner, I placed orders for four stocks. This required reviewing part of the watch list, but mostly it was stocks marked for purchase, and everything seemed to be in order, so it went pretty quick. I did study the charts carefully to confirm my earlier observations, and make final order-type decisions. These were: two stop orders and two limit orders, one good for the day, and one until canceled. I ordered $100 worth of each, roughly.
Here's a sample stock: Mesabi Trust. They own several big mining claims in Minnessota, low grade iron ore in a range of hills, with a whole bunch of land. The company is ninety years old, and I'm looking at it as almost a utility. After 2004, the stock made a big wave up, from 5 to 30, and then it plunged all the way back to 5 in 2008. Since then, it has rallied fast back to 25! But now it has plunged through 20 abruptly.
I'm looking for a price around 15, maybe a little higher, possibly a little lower. I don't expect the the stock to stay at those prices for long, and I expect a very big and rapid rally to follow this correction, taking the stock perhaps to 100. This is a bit of a dreamy interpretation of the chart, but what I'm seeing is lots of these companies primed to leap upwards in a rebounding economy, lots of charts making strong buy signals, which could confirm that the economy is rallying dramatically, and which are, in a sense, confirmed by the very prevalence of such indications of strenghth. Of course, action in the coming days and weeks, viewed through the prism of the trades I just made, will confirm or deny the vallidity of my analysis.
No comments:
Post a Comment