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RVB's Market Musings

What began here as an avenue to interact and learn has far exceeded those goals.

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Wednesday, July 20, 2005

Best Buy and Money Management

Today's the day. The day I would take some off the table. It's time. Let's not be piggish, and sell some. This way, if the stock heads higher, we still participate in the run, and the market looks pretty good these days. We might be headed to new highs, and, in fact, the nasdaq hit a new high on some pretty darn strong volume today.

So, what's with best buy? It's really been on a tear, and has been resting. I think that it's going to pull back a little bit. A strong player might actually risk it and buy more then, but I would just let the position unfold. Here's a technical justification for selling 1/3 of the position:

The bearish divergence is why I think BBY will take a quick dip. But I think that it will be quick because the trend is REALLY strong - indicated by the Stochastic oscillator being saturated in "oversold" territory. So I think BBY is headed to 72, and then headed to 80. But I would be taking a little bit off, because it's been good sailing, and now we hope that we're on to something big - and I'd be using some house money to find out!


At August 10, 2005 1:56 AM, Anonymous Anonymous said...

Hi Rich,
BBY split. I sold 1/3 and still own 440 shares since the split occured.
Thanks for the advice.
Hang in there.


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