Portfolio Is Gettin A Little Wild

Today, I started building my position in NCTY. This was much earlier than expected, but the stock crossed and important point for me today closing below 18. I had promised myself that if it did so I would begin building my position. I purchased 100 shares today at $17.48. I am hoping to eventually build a position in the 500 share range and with an average closer to 15-16. I am dreaming of building a position in the 1000 share range. :) As I have discussed before, I see this stock as a potential 10-bagger and I plan on putting my money where my mouth is. Obviously Q3 earnings report out in November will tell us a lot about the company's prospects as it will be the first full quarter where results will be included with World of Warcraft.

Technically NCTY had built some support in the $18 range which was pierced intra-day and held for the close. Here is chart:


The next support looks like it is around the $15 range. Here is longer-term chart:

These charts are not particularly meaningful as the stock definitely falls in the small cap department (re: market cap < $500 million) and the trading volume also puts it in the illiquid category ( average daily share volume < 300,000 shares).


There were not any real significant changes to the portfolio since this morning other than adding the NCTY. The gold shares continue to drift around, not really sure if they want to make the push for the next upleg. The banks and homebuilders are also drifting, not really sure if they want to sell-off or rally. Lets see what happens over the coming month. I excepter October to be a big month for my portfolio - either on the downside or the upside and I currently have the positions to justify that idea.

I have a strange mix right now in that my cash levels are perilously low, limiting my flexibility in a crunch. The only exciting part is that I have the portfolio positioned in several different directions and it will be interesting to assess how different news items and perceptions interact between the different positions. Although the NCTY is much more a stockpicking story totally unrelated to macro and more about a bottom-up analysis, it does add an interesting exposure as it should have decent correlation with Nasdaq index as well, so if tech continued to rally it might have an interesting effect....only problem.....I have no leverage in it and 10-1 leverage in my other positions meaning those will correct a lot faster and more viciously.

Ill leave it at that and I look forward to the coming weeks.

Regards,

BG