Wednesday, February 21, 2007

An unexpected increase in inflation sends gold prices soaring .

So much for a WFMI pullback. Stock is flying after hours on news Whole Foods is buying out fellow organic producer Wild Oats. I don't usually average up into my positions during an extended bull market so I will likely sell WFMI when it reaches the overbought level and wait to buy it during weakness, in a bear market.

NYSE Group Inc (NYX) is a momentum stock which I am glad I got into last Friday. I felt the pullback was overdone and it looks to continue its upward momentum atleast temporarily.I don't like chasing momentum but will buy during pullbacks when I feel the previous trend is ready to resume and NYX fit the bill nicely. Look at the large volume on Friday which suggested the current turnaround. I expect resistance at the 50 day moving average around $98 and I will be keeping a close eye on this level.

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