Game Over for the Individual Investor

[youtube:http://www.youtube.com/watch?v=SptB3STL5rs 450 300]

Hat tip: Howard

There are many great names on sale in my opinion, but you must be able to look out a few months/years out. Normally I don’t speak much about my portfolio(s), I only mention my quick trades.

Beneath the surface, I have been building a portfolio with stocks that have took it on the chin. I use smaller position sizes and add to them as they fall lower.

Here are some names in that portfolio: NVIDIA Corporation [[NVDA]] , VMware, Inc. [[VMW]] , Chesapeake Energy Corporation [[CHK]] , Google Inc. [[GOOG]] , Yahoo! Inc. [[YHOO]] , E TRADE Financial Corporation [[ETFC]] , Valero Energy Corporation [[VLO]] , and now Chipotle Mexican Grill, Inc. [[CMG]] .

Suntech Power Holdings Co., Ltd. (ADR) [[STP]] was in this portfolio, but it ran so fast I had to take profits.

As traders, we should not limit ourselves to one avenue. For instance, I have 3 separate accounts:

The first one is the roth IRA, one in which everyone should have. I use this account for stocks I evaluate on a fundamental basis and have a longer time frame. Typically the stocks in this portfolio have lower betas, and many pay dividends. This is the account I rarely speak of, mainly because it’s slow money.

The second is my swing account. In this account, I add positions I intend to hold for a few days or even weeks. This is also the account I place stocks that have been crushed, like VLO, NVDA, ect.

The third, is my trading account. This is the one you hear me write about all the time.

The point I’m trying to get across is that there are opportunities to be had all over the marketplace. A year from now you will be kicking yourself when GOOG is back over $600, or VLO back at $50.

The market is cyclical in nature, don’t forget to take advantage of the dips.

Chipotle Mexican Grill, Inc. [[CMG]] longer term hold.

In the last full week of August I plan to be very selective with my trades. We are still in a low volume environment which give us a lot of choppy action, no follow through.

I have yet to take any trades and may not trade at all today. One stock I’m watching is Research In Motion Limited (USA) [[RIMM]] , it tested our trendline this morning and is now free to move higher. Over $134, and I will be adding to my position.

As far as solar goes, I am not chasing anything up here. I have a heavy position in Energy Conversion Devices, Inc. [[ENER]] and will ride this thing until earnings, where I will take half my position off. If I had to pick one to buy at this level it would be SunPower Corporation [[SPWR]] .

Sequenom, Inc. [[SQNM]] BTFO, but had no balls to take the trade.

note: Leave comments, keep me updated with stocks on your radar.

I will be looking to short the Agriculture space by buying puts in [[DBA]]

Going through a few charts tonight, I notice Ag is ready to resume it’s recent downtrend. DBA, which measures the space, rallied above the 50 MA, but failed to hold. I will be now be looking for a break below the 200 MA with significant volume.

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Also, the market is at a critical juncture. Let’s take a look at the [[SPY]] , which measure the S&P 500.

Last week we saw a clear break in our recent trendline, then Friday we saw a re-test back to that same level. I will be watching to see if we can clear 130 with significant volume.

If we fail to move past resistance (recent trendline), I will be looking to short the market.

Bullish Chart Patterns

• VIDEO – Symmetrical Triangles
• VIDEO – Ascending Triangles
• VIDEO – Flags
• VIDEO – Wedges
• VIDEO – Pennants

Bearish Chart Patterns

• VIDEO – Symmetrical Triangles
• VIDEO – Descending Triangles
• VIDEO – Flags
• VIDEO – Wedges
• VIDEO – Pennants
• VIDEO – Rectangles