Saturday, October 30, 2004
Behold the powers of technical analysis! I have bought shares of Southwest Airlines at 14.26 a share on October 18th. Now according to the chart the five day met the twenty day on Friday the 15th. Of course, I didn't buy then and I was nervous about buying on the 18th after the large jump in price.
It stayed flat for a couple of days and then it rose. It has risen $1.51 since I bought it. Now if I sold out now, that would be a ten percent gain. (Actually a little more, but let's keep it simple.) Of course, the plan says that I should not. I may lose some of this money. I may make more. It's hard to tell. That's the way of the stock market. Of course according to technical analysis I would sell out somewhere around 14.40.
That 14 cents would be a one percent gain. If I get one percent a month, that's twelve percent a year. I only get ten percent on tax deeds. (Or that's what Tennessee pays out. Some states are higher. The book I've linked does not apply to Tennessee.)
Anyway, I can't wait to see what happens next week. They are predicting that the price of oil will drop next week. Of course, Southwest has optioned quite a bit of it's fuel prices over the next few years, so who knows how that will affect things if the price of oil goes up.
Really, it's all speculation anyway. And that's what technical analysis is all about, playing the crowd.
Later folks.
It stayed flat for a couple of days and then it rose. It has risen $1.51 since I bought it. Now if I sold out now, that would be a ten percent gain. (Actually a little more, but let's keep it simple.) Of course, the plan says that I should not. I may lose some of this money. I may make more. It's hard to tell. That's the way of the stock market. Of course according to technical analysis I would sell out somewhere around 14.40.
That 14 cents would be a one percent gain. If I get one percent a month, that's twelve percent a year. I only get ten percent on tax deeds. (Or that's what Tennessee pays out. Some states are higher. The book I've linked does not apply to Tennessee.)
Anyway, I can't wait to see what happens next week. They are predicting that the price of oil will drop next week. Of course, Southwest has optioned quite a bit of it's fuel prices over the next few years, so who knows how that will affect things if the price of oil goes up.
Really, it's all speculation anyway. And that's what technical analysis is all about, playing the crowd.
Later folks.
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