Week 2

2nd Week

The end of this week the market indexes (S&P, Dow and Nasdaq) have fallen 1%, which is a pretty agile falling. The reason is a fiscal cliff aka the Budget Control Act,  starting 31 december 2012 midnight. Easiest explanation for The Budget Control Act I could find : Among the laws set to change at midnight on December 31, 2012, are the end of last year’s temporary payroll tax cuts (resulting in a 2% tax increase for workers), the end of certain tax breaks for businesses, shifts in the alternative minimum tax that would take a larger bite, the end of the tax cuts from 2001-2003, and the beginning of taxes related to President Obama’s health care law.
 In summary, businesses pay taxes to health care. Which means, they lose money. Which means, traders start selling and price decreases. Now, what we did here, is called fundamental analysis. It is mostly based on overall state of economy, companies management and balance sheet. Techincal analysis, which I'm testing in this blog, is simply trying to predict the stock's movement and is not that much affected by company's results .

Now, let's see what has happened with my portfolio : 
In total (in 2 weeks) : 
NKE -0.58% . Will sell, because it hasn't worked out as I hoped and there might be coming a fall and a triple bottom. If the movement hasn't been as predicted and it doesn't seem to be going any better, sell the fucker. There's no point just holding your money there and just hope for the situation to get better. Probably it'll get worse. Of course dumb luck might make the stock go up, but that's a rare occasion.

KIM +0.16%; nothing to say about that

A +4.07% - a week ago it was -1.25%

Stocks bought week ago : 

JNPR +2.19% - triple bottom; has risen as presumed and probably gonna sell next week, because in a couple a days the movement will stop

L -2.05% - bought it because of the famous head and shoulders indicator. though it hasn't moved according to that indicator, I will still hold it because at a large scale's uptrend it will bounce up from channel line (below) soon and when it does, I will sell it immideately. If the stock hasn't been acting as predicted and has fallen fast then before "selling the fucker" try to analyse and stay calm. There's a quote about it in Wall Street : "First lesson in business is don't get emotional about stocks - it clouds your judgement."

Guess this is it for the week. Won't be buying anything new next week. Chill.