I did a Scottrade screening of Mega Cap stocks with a 2% stock price increase during the last five days. Wal-Mart (WMT) was the only stock that met the test. I looked at WMT’s 1-Month, 10-Day & 2-Day Price Charts and concluder that the stock could be turning into a momentum stock. I bought 150 shares at a Basis Price of $59.61 on June 9, 2008.
On June 27, 2008 I took a look at this Wal-Mart 1-Year Weekly Price Chart:
This showed a strong upward price trend so I decided to buy more shares. Notice the red Price Channel lines above and below the candlestick price bars. This indicated that it might be possible to buy more shares during coming weeks as low as $50/share, substantially below my original purchase price.
I had about $3,800 available in the IRA Account then and, on Sunday 6/29/08, looked at this 2-Day 15-Minute Price Chart on Wal-Mart:
Since the general market sold of sharply these two days, I decided to buy more shares on Monday.
Unfortunately the price headed up early Monday. It turned out that I bought 80 shares at a basis price of $56.90 just before the close that day June 30th. In hindsight I should have put the order in on Sunday to buy the first thing in the morning – more shares at a lower price.
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