Monday, April 04, 2011

A stock I really like: MAKO.

As a day trader, MAKO offers very little so I own it in my long term/swing trade account. Here is what I like about this stock:

1) The chart. The thing is strong, just goes up.
2) Difficult to buy. I keep buying little chunks and it just flies up, I have never been able to get the size that I want in this thing. A really good sign.
3) Short interest. I guess this company is still new and is still losing money and people are betting it is over valued. It probably is over valued, and thats ok with me.
4) The story. They make surgical robots for knee and hip replacement. I like technology and their procedure might just prove to be the de facto baby boomer surgery. They are also rapidly approaching break even and this would really be a turning point for this company.
5) Bull Market. It is a good time to own market leaders and strong stocks. This bull market could last a long time. Turn off the news, just look at the indexes. When you have a huge earthquake/tsunami/nuke problem in a major market and a new war start and the market rapidly gets back to highs, its a bull market.

I have been tempted to sell some of the MLPs I bought during the crash and park the money in this guy, but for now my position is limited to 1500 shares.


Friday, April 01, 2011

This blog post is related to yesterdays ETF plunge caused by a market marker. It brings to light one of my trading rules concerning stocks that plunge sharply (or spike) to obviously dangerous levels. I simply do not try and buy (or short) these spikes anymore because the trades are broken nearly 100% of the time and often with a loss when only one side of the trade is broken. When they are not broken, it means real news and you are catching a falling dagger.

These short sighted rules on error trades saves mostly large institutions money from being careless while discouraging traders from bringing the market back to equilibrium quickly. When I make a mistake I have to pay for it and I wish it applied to everyone.