Stocks STKL, NATI, CNQR

I have been looking at STKL, NATI and CNQR. They all are over-sold right now. I bought NATI this morning. I am considering STKL and CNQR.

NATI has dropped 4 points on no news. The closest thing I could find is some insider trades. Fundamentally everything is in order. 10 percent yoy revenue growth, 32 percent yoy earnings growth, no debt, dividend and decent balance sheet. I will be watching this stock closely as it certainly isn't undervalued even with the recent drop.

STKL could be a great long term play. They are developing technology to produce ethanol (alternative energy source) from lignocellulosic biomass. They produce organic foods, and they produce environmentally friendly materials. Gotta love what the company does. Earnings and revenue are growing and as mentioned over sold. Will be looking to get buy some stock in the next couple of days and will add on strength. For those interested in more info check this yahoo link

CNQR has a really strong chart and product. Great press and company story. Even with the pull-back the company is priced higher than what I am comfortable with; however it has momentum. I will try and get in for a quick pop.

After today a lot of stocks are looking good. Passed on HOM this morning, uggghh!

We'll see how tomorrow goes. There is talk of this being the end of the quarter for institutions so they are dropping there losers thus driving the price of stocks down. I'm not sure if I believe this!

Still tweaking my technical indicators.

Technical Indicators

I have been looking at technical indicators and combining them to see which set is most predictive. It is extremely important when looking at indicators is to make sure no news has influenced them. By looking at indicators for a period when there has been no press releases from a company makes them more sensible.

It is important to look at 100's of charts and for long periods of time when learning about an indicator. It is also very important to understand the math behind the indicator. Just because an indicator is pointing up or down is not enough information. You need to look at the indicator in the context of the general trend of the stock.

I will write in more detail about indicators that I find particular useful in a later post.

Based on the prelimnary set of indicators I'm using and fundamentals CAMP has come on my radar. My plan is to sell around 8.50 and have a limit of 7.45.

For the experts in candlesticks, CAMP has had back-to-back DOJI's. Any opinion?

Why write about investing

I have finally decided that for me to be successful in trading stocks I need to write a log of what I am doing. I have decided to make my log public by publishing it as a blog. I am doing this for 2 reasons. One to get feedback and the other is to share ideas.

My inspiration has come from a man known as BlackTruck. He as an avid technical investor. He is passionate about ElliotWave. As he says, even in his dreams people are candlesticks. The good guys white and the bad ones black.

Hopefully by writing about stocks, trades, risk anaylsis, etc I will become more aware of what I am doing and become more analytical in my trades. The most important thing is to come up with a framework (e.g. a set of guidelines) that make me feel comfortable when I trade a stock.

Rule #1 - Learn from other people, but apply there knowledge with what I feel comfortable with. Analyzing a stock is as simple or complex as you want to make.

So hopefully this will be the start of a profitable journey that I will be able to have the staminia and fortitude to continue for a long period of time.