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Wednesday, February 23, 2011

A.C.C. Update 12.5

So what is "Airelon's Challenge Chronicles"? You can find a description by clicking here.

So should I consider this an entry for "Airelon's Challenge Chronicles"? I guess so. I just thought I would throw up a text entry on my current thoughts in the markets ... 'things' overall. As always ... they're just my thoughts ... not yours ...

I've been concentrating on the dividend investing side of things lately, as followers of "A.C.C." know.

General Mills has been having a wonderful past few days.

General Mills (GIS)
Daily Chart

(Click to Enlarge)

Naturally, this is not what I see as a 'buy', even if I didn't already hold it in the A.C.C. accounts. 'A' move has already begun. But since I do already hold GIS ... then this is what I call "enjoy the move". Personally, I think current weakness that we're seeing in the grain markets (Wheat primarily, but also Soybeans and even a couple of down days in Corn) is clearing out the initial bearish sentiment from high grain costs to General Mills (GIS).

And although I don't own Abbott Labs (ABT), I have been discussing it lately, so I thought I would discuss that a bit. First of all, if you haven't seen McDonaldsCalling21's videos on ABT, and his hedging on the position, then I would highly recommend it.

Abbott Labs (ABT)
Daily Chart

(Click to Enlarge)


Myself? Although I don't own it, I still like the entrance that I mentioned on Sunday's entry. At the moment, we're holding on some good 'ema support' on the one hour chart. We need to break above $47.18 for the uptrend to continue, and a firm 'footing' underneath ABT.

Moving on to Johnson & Johnson (JNJ) ... we broke lower later in the day, and I truly think we're in one of those positions where larger accounts could start to think about putting on a smaller hedge. Now we didn't break below $60.29, which is my initial level. But just the way we broke down? I'd be thinking about it. In other words, yes, the same puts I mentioned on Sunday, but only buying a few such puts, to save a bit on premium, and only 'soften' any potential blow that downside risk presents.

Johnson & Johnson (JNJ)
One Hour Chart
(Click to Enlarge)


Who knows? We could bounce off of that $60.30 region, and never breach the support. But it's at times like this that personally? I'd have my finger near the trigger finger, and be watching the tape closely for the opportunity to put on any such small hedge. And as I mentioned Sunday, with a clear break below that second area of support ... would be an opportunity to increase the size of the hedge. Since I see more downside risk with Johnson & Johnson (JNJ), this is not one I'm looking at buying more of, or averaging down on with these prices.

Coca-Cola (KO)? We're trending nicely upwards, but I want to see us take out that higher high of the $64.80 region. On a larger account? If this trend holds, I don't think averaging in and buying more would necessarily be a bad thing.

But that's just me.

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Note: The above statements should not be construed as an investment or trading recommendation. Airelon's Investing and Trading Journal is a blog that allows subscribers to look 'over my shoulder' as it were, for my own personal specific trading and investing ideas and thoughts for the next week. But they are only thoughts as of the moment of publication, and are subject to change.. Any trades or investments that I discuss within this blog are simply my own thoughts regarding my own investing and trading outlook. Remember that entering any market is an individual decision. There is no guarantee that I will enter, or have entered any of the trading or investing ideas that I discuss in this blog; as larger accounts may require a different strategy as the ones presented here. This blog simply contains my trading and investing thoughts for the next week. I, the author do not grant this work for wide distribution beyond any single individual subscriber as this publication is protected by U.S. And International Copyright laws. All rights reserved. No license is granted to the user except for the user's personal use. No part of this publication or its contents may be copied, downloaded, stored in a retrieval system, further transmitted or otherwise reproduced, stored, disseminated, transferred, or used, in any form or by any means except as permitted under the original subscription agreement or with prior written permission. I personally only enter any market after watching and reading the tape and I trade using money management principles. The losses in trading can be very real, and depending on the investment vehicle and market, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 14 years of experience in trading and investing in these markets. Airelon's Challenge Chronicles are demo accounts,with all of the inherent problems therein, which are used within this blog in an attempt to track the results of my own thought processes., and is run as a model. Traders who should make their own decisions based off their own research, due diligence, and tolerance for risk. Any pictures used within this blog are believed to be public domain. Any charts that displayed using the ThinkorSwim platform, or any other charting software are believed to be public domain. Any other pictures were obtained through Wikipedia's public domain policy. As a reminder, any trades discussed for "Airelon's Challenge Chronicles" would only be 'day trades' according to the parameters discussed for Airelon's Challenge Chronicles, at this stage of the game in order to escape the risk of over-leveraged gap opens in the commodity futures markets. As a 'trading sister' would have grown to the $30,000 level, I would have graduated the account into 'swing trading'. In addition, it is understood that readers have read my YouTube methodology series. It is also understood that the writer of this blog has repeatedly warned against the dangers of shadowing any other traders thoughts. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk


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