My Open Positions and How They Came To Be

For my first blog post and first ever review of open positions I will take a look at what I currently own and what led me to enter each of the stocks. This is mostly for me – to rehash my previous moves and look for points of improvement, but I hope any readers can benefit from it as well. I follow trends so you’ll notice I hold stocks for as long as they allow. The ones I have held the longest are often the biggest winners and I like it that way. Another thing: as the name of this blog suggests I use the social web, almost exclusively, for my investing ideas. I run my own screens as well, but I find that following the work of smart people reduces my time and also teaches me an enormous amount about investing that I would otherwise not have access to if it weren’t for Stocktwits and bloggers. So along with my commentary on each stock I own I will also cite my source for the idea. Thanks for reading.

V – long 2/8/2012 +77%

I was interested in this company for a long time and actually entered after MA announced earnings and V rose in reaction to that strength. Not one of my most prudent entries but the trend was up at the time, I hopped on and it has stayed in an uptrend ever since. This has been one of the easier stocks to own. Doing nothing until the trendline is breached. 20 week is also good long term trendline to watch.

Source for Idea: Warren Buffett… It’s funny looking back at old ideas. I have been investing for a short amount of time and have nailed down a process and strategy in the last year or so. Before that I guess I was all over the board. A little Buffett, a little trend following. Ha…

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PRLB – long 8/8/12 +74%

Patience after my entry in this stock has been rewarded and has been a serious winner since breaking out to all time highs early this year. Again, not the best entry. Or more importantly, not the best hold as it did drop more after my entry than anything I would allow now. Got lucky though. Volume shows that big players still want to get in this and I will stick with it until it tells me otherwise.

Source for Idea: Stocktwit post by Joe Fahmy… Again, my process and strategy were not defined back at this point. I knew I could learn a lot from Fahmy’s posts and tweets, but I would never enter a stock based on the post of someone else anymore. I guess this is why looking back to past decisions is helpful…

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ASGN – long 8/16/12 +78%

This entry shows what is probably my favorite technical setup for a long entry. The stock had a strong move up on good volume from around $14 to around $20. It then consolidated and formed a nice round base that never dipped far below any major averages. I bought it in anticipation of another move higher and have been rewarded nicely. Last week it broke above a long term resistance trendline. We’ll see what happens from here, but so far so good.

Source for Idea: Leigh Drogen favorite trends for the year… looks like I was finally pulling it together around this time last year. I had read Drogen’s post at the beginning of the year and added his ideas to my watchlist. I then kept track of it but only made a move when it matched up with my personal style and strategy. This is a perfect example of ‘investing social’ – I used the social web to find a good idea and I combined it with my personal style to create a quality investment.

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GOOG – long 12/13/12 +30%

Like V, this was a company I had an interest in owning and was stalking for a while for a good entry point. The stock broke above long term resistance in August ’12 and then retested that breakout. It never dipped below the $650ish previous resistance which led me to believe it was likely now going to be a support level. I entered shortly after and the stock has not looked back.

Source for idea: Google, everyone… There wasn’t a specific person or source that turned me on to this as an investment. Who doesn’t know about Google?

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KORS – long 1/9/2013 +19%

Similar to the ASGN setup, this had a big move and then consolidated in a bit of a round base. After it found support above the 10 and 20 week moving averages I got long. Another notable aspect of this entry for me is the weekly MACD moving positive. I am a big fan of this. This proved to be a good entry for me, but the stock has required patience. I am fine with being patient here because it looks like the stock has a good chance of moving higher. We will see.

Source for idea: Most trend followers on the social web… This name is widely followed and talked about by a lot of people, but also by people I enjoy following and respect. The name had been on my watch list for a while and a setup I like came along so I took it..

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INVN – long 2/12/2013 +3%

Not my type of entry (daily breakout buy, basically bought the top in the stock when I entered), didn’t stick to rules (held on to a loser for far too long), and got damn lucky that my confidence in the story and company looks to be paying off. I have learned a lot from this and have vowed to never hold a loser too long ever since. The crappy thing is that I have been interested in the company for a while and have watched it closely for a while. If I would have cut my losses after this entry I think it is likely I would have re-entered around 12.50, after the earnings strength and support above major moving averages. Instead I am up just a few percent now. But, I got lucky and I have since to buy a daily breakout or hold a loser too long. Hopefully I can keep it up. Also, this stock looks really good now.

Source for Idea: Chris Perruna favorite ideas for 2013… Perruna, like Drogen, puts together a list of stocks that often match up with what I look for in investments. The ideas go on my watchlist and if I like what I see I look for an entry. Sometimes I am wrong about the entry. Not his fault. Mine…

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HHC – long 3/8/2013 +44%

This one makes me look smart. I had been watching this stock after reading a few smart people saying that it was very undervalued. I don’t dive into that kind of stuff, but when the story matches up with technicals it gives me more confidence in the entry. This consolidated for a long time just below all time highs. It then broke out on major volume and I hopped on. Looking good and feels like it will keep going.

Source for Idea: 2/14/13 post by Todd Sullivan (valueplays), reposted by Howard Lindzon on Stocktwits (I didn’t follow Sullivan until after this). Another great example of leveraging the social web for investing – I let smart people (howard) read a bunch of stuff and curate it for me. He reposts good ideas and I read. I then add to my watchlist and make a move when it matches with my personal style.

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SPSC – long 3/8/2013 +47%

Another example of my favorite setup and what I am now constantly on the lookout for in new stocks. Big move, smooth consolidation, weekly MACD turning positive, close to all time high breakout. I entered in anticipation of a move higher as the stock looked to find support above major moving averages. It has since broke out a couple times and looks really strong right now.

Source for idea: Stocktwits post by @TwentyOne… This is an example of finding a Stocktwits user that has a very similar style as me. I regularly go through the stream of this user and add his ideas to my watch list. This was a good one…

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FEIC – long 5/1/2013 +18%

This was a bit of a breakout buy for me but it was coming out of a nice base so I didn’t consider it to be a chase or emotional buy (like INVN). It is also a stock I had been watching for a little while and believed in the story and strength of the company.

Source for idea: again, Leigh Drogen’s favorite trends for the year. The guy puts together a good list. The stock also made the ST 50 after I was watching it. It then setup and that was all I needed to make an entry…

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TEAR – long 5/14/2013 +38%

This was an abnormal entry for me, but controlled and well prepared none the less. I actually stayed home from work one day (I invest retirement money and trade a little bit on the side) and decided it would be fun to do a little short term trading. I had my eyes on this stock for a while and was really interested in the company. They reported earnings the night before my entry. I read the earnings call transcript and calculated a 5:1 daytrade the next morning. Since then I have applied my trend following rules and will hold as long as it stays as strong as it has been. (I know, don’t turn a trade into an investment. This was a stock I wanted as an investment for a while. It was just how I treated the entry that was a trade).

Source for Idea: Investment research firm I follow that posts their monthly research universe. I look at their ‘strong buys’ and watch any that interest me.

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LNDC – long 6/7/2013 +5%

I haven’t held this too long so I have less commentary. The volume on this stock was very enticing when I came across it and it gave a nice entry point with the 10 week and previous breakout point acting as potential support. We will see what happens, but it looks like it could move up.

Source for idea: same investment firm I mentioned for TEAR. I usually wouldn’t follow sell side recommendations, but I know people at the firm and I know what type of stocks they look for. I also only use them for ideas and buy only when it matches my criteria.

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LNKD – long 7/5/2013 +5%

A widely followed stock by trend followers that gave me my favorite type of setup. Big move, smooth consolidation, weekly MACD turning positive, support above 10 and 20 week MAs. This is new but looks good so far. We’ll see.

Source for idea: most trend followers… Kind of like GOOG, I can’t put this idea on one person or source. It’s been on my watchlist for a long time and finally gave me the setup I wanted.

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So there you have it. My first post. A look into how I come up with ideas. And luckily for me, they are all winners right now. I have found my style and that style is trend following. Just so happens that that is a nice style to have in the recent market. I will stick with it until my positions tell me to get out.

I don’t know who the hell will read this, but if you made it this far I hope you enjoyed. Feel free to reach out with any questions/suggestions/ect.

And do your own work. This is mostly for me, not advice.

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