Thursday, January 26, 2012

Quick update

Tuesday I sold my DDM shares. Back in October I bought them at $53.78 a share and I sold them Tuesday at $64.60 which calculates out to a 20.1% pick up. I still remain optimistic short term, not so much mid term and later this year or early next year we go down the toilet bowl. Typically when a stock gets so far above the moving average line it becomes overbought and tends to have a mini correction. I will enclose a chart of DDM so you can see how far above the moving average line it had become. This is a 3 year chart and as you can see every time the price moves a certain distance above the moving average line the stock will fall back. I will either try to buy back at a lower price or, if things start to go south, I may look for another stock to buy. 

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