When I see someone is saying such-and-such a stock is overbought what I'm seeing is that the purchase pattern is exceeding things of an historical value. As an investor far more interested in capital appreciation than distribution, "over-bought" isn't a term in my vocabulary. Under-bought is all I look for as it spells "stock compression." And stock compression is what we see when stocks are held back for the wrong reasons. Any stock-related success in store for me lies in the future and won't be history until well after the fact.
EPD, ETP, NGL, DK---all are poised for strong gains going forward, in my opinion. Early this week I added 1,500 NGL. ETP added 500, EPD just added 200 early this morning and a hundred yesterday. DKL is a bit of a question mark. I am ahead but not convinced it will remain so. I have a buy order for 100 of DKL but only at $27.50.
Today's gains will unwind somewhat and I wouldn't urge people to buy at these bloated prices. Stock prices do not always reflect valuation correctly. Friday is the week's day of reconciliation and gains such as we're enjoying will be exposed to profit taking. So beware!
The dust will soon settle and we'll unearth new bottoms and fresh buying patterns will once again surface. Today is definitely NOT the time to be committing fresh money to picks we're seeing as gilded through and through.
Next week, possibly Wednesday and Thursday, things will be clearer, assuming there's been positive action on the proposed legislation. Pete807 told me in a PM that McCain is prepared to vote in favor of the tax revision proposed and Pete figures the big market bounce is coming from that. I've not looked in on the news but pete807 is one smart guy and I'll bet he's nailed it.
Meanwhile, we've got some strong movers today and I'm good with focusing on those. I'm always looking for greener pastures, of course, but
I figure we've got strong contenders for successes beyond wherever beyond goes so let's try to let market turbulence calm down a bit as we collect ourselves, our $$$ reserves, margin sensibilities and reconnect within ourselves and each other here on the boards.
Keep up the good work! And remember that a vital part of doing that is to exercise patience. I know it's hard when we have a bunch of strong picks driving northward but this is the time to exercise discipline and limit susceptibility to emotional responses.
