Tuesday, September 28, 2010

Hot Stocks Update: RAX, REE, LYSCF, CIM

If you've read my blog since I've started and traded off of it, you've gained more money than the S&P 500 has returned the entire year to date. 9 out of 10 fund managers can't even beat the SPX 500. So - I'm rather proud of the certain moves I've made this year. Make no mistake however - Following someone else's trading advice is perhaps the most foolish thing you can do with your money. Although it's hard for any trader to swallow their pride when it comes to losses - I've personally lost tens of thousands of dollars following other people's trading advice. Most traders/investors have big egos when it comes to talking about their positions Staggering losses are quite the humbling experience - but almost a necessary learning hurdle that every player in the financial markets must experience first hand to realize and learn proper money money management skills.

On another note, I watched Wall Street: Money Never Sleeps this weekend, it was definitely more sappy and "Hollywood" that I would have preferred. The original Wall Street was much more "gangster" in a sense that there was much more hustling involved in winning on The Street rather than an emotional roller coaster ride that Wall Street 2 gives you.

Assuming we entered at the highs of the day, here are the returns so far.

Standard & Poor's 500 Index (SPX)
High on 04/24: 1219
Current Price: 1142
Loss on Investment: -6.3%
Comments: Caution, critical area, not able to break resistance of 1150 as of yet. Above 1150 targets next SPX level of 1219. Below 1150 targets 1050, then 1000. I ended getting stopped out of the S&P contracts, however CIM and GLD have done well since.

First up: Rackspace Hosting (RAX)
High Price on Recommendation Day: 23.47
Today's Closing Price: 26.11
Return since Day of Recommendation: 11.4%
Comments: I would have preferred a pullback closer to $20, but after the night I posted this is the day the pullback came. Stock has broken to new highs and posted 50/200 day simple moving average cross. The call buyers were very happy with this trade.

Second: Rare Earth Elements (REE)
Suggested Price: Breakout of 6.37
Today's Closing Price: 8.95
Return Since Recommendation: 40.5%
Comments: Beautiful Volume and follow through on the break of the high of 6.37.

Third: Chimera Investment Corporation (CIM)
Recommendation Price: 3.90 in April
Today's Closing Price: 4.14
Return since Recommendation:  6% + distribution yield

More to come...

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Disclaimer: All content within this site is solely the opinion of the author and does not constitute investment advice. Trade at your own risk.