Wednesday, January 30, 2013

Wednesday After Market


The indexes were red today and that's different.  We learned the economy contracted (no surprise to some here) and Ben reiterated his intention to keep pumping liquidity ($85 billion/month) to keep inflating the bubbles while congress plays graba$$ instead of working together to make some difficult decisions.  I get the feeling even Ben is getting tired of this.

Texas - Lies and Truths

But they run a budget surplus

A state does not have all of the challenges of a federal government but maybe a closer look at how they are doing it is in order.  There just might be some (many) ideas, methods and programs that can be valuable at a national level.

Good Morning Vietnam

Gator's Chart of the Day: VNM
Apparently, Chinese labor is becoming too expensive and the new China is Vietnam.  It must be true 'cuz I heard talking heads babbling about it just last week.  Judging from the volume in VNM money is moving there and maybe there's a trade to be made.  This fund is probably the safest way for U.S. investors to participate in the rapidly growing economy of Vietnam.

"The investment seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Vietnam Index. The fund normally invests at least 80% of its total assets in securities that comprise the fund's benchmark index. The index is comprised of securities of companies which are domiciled in Vietnam and primarily listed on an exchange in Vietnam and which generate at least 50% of their revenues from Vietnam. It is non-diversified."  --- Finviz

The Trade 
The entry should be as near the support line as practical.  I would put my stop just below Monday's low of 21.20.  If the stock opens below the horizontal support line I would not enter unless the price moves down to 19.70ish and bounces.  I would buy that bounce and put the stop just below 19.45.

Since there is no obvious upside target I would stay in the trade as long as volume is above the 50 day average and the price continues higher.  That likely means I would place my stop just below the previous day's low and let the stock take me out when it tires.