Tuesday, May 18, 2010

Trade Update, May 18, 2010

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Added to my Goldman Sachs Group, Inc. (NYSE: GS) position on the breakout above 140 as per plan. However, the sellers showed up later, and the broad based weakness led to Goldman Sachs selling off. I exited my full position at breakeven (140). Will probably need a couple days to determine whether there is any buy support at 136.6.

Started a 1/4 position in Berkshire Hathaway Inc. (NYSE: BRK.B) as per plan.
long 75.6, stop 73, target 80+

IBM (International Business Machines Corp., NYSE: IBM) has been acting the strongest during this OpEx selloff, along with MacDonald's. I will look to buy both names on weakness.

Another name has caught my eye, and that is American Capital Agency Corp. (NASDAQ: AGNC). This is a mortgage REIT that buys MBS's and CDO's and makes money on the interest rate spread. They pay a 21% dividend. They recently completed a secondary stock offering, which was priced at $25.75. I will monitor this stock to see if it can stay above 25.1 next Friday.

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