Monday, June 20, 2005


The momentum moose is off and running

I picked up 400 shares of AE today at $20.89 today. Let me tell you, buying a stock that is up $3 from Friday morning is not easy. After all, I usually sell stocks like that, not buy them. But this is my experimental momentum portfolio, so I have to be true to the reason I created it. Luckily, the stock continued to move higher and finished the day above $22, so for the time being, the Momentum Moose portfolio is off to a good start.

I am starting to become concerned that rising petroleum prices will have a chilling effect on the economy and the stock market. So to hedge market risk, I bought two more energy stocks today: NGAS and DWSN. I reckon that if the rest of the market tanks, these two should go higher, thereby mitigating the negative impact on my portfolio.

Also, I think we are still in the 7th inning of the bull market in energy stocks. If this were any other sector, NGAS and DWSN would not have passed my value test. But I think energy stocks have become the new dotcoms. Of course, we all know what happened to dotcoms, but I'm willing to bet that as far as this analogy is concerned, we are still in late 1998 and not early 2000.

Comments: Post a Comment

<< Home

This page is powered by Blogger. Isn't yours?