Tuesday, September 30, 2008

Trading Strategy / Photon Close

How do you play this gyrating market!? Yesterday, I executed several small trades on Apple (Ticker: AAPL), Goldman Sachs (Ticker: GS), Financial Spiders (Ticker: XLF), Invitrogen (Ticker: IVGN) and the Nasdaq 100 (Ticker: QQQQ). I closed out all those trades yesterday and today with some small profits.

The good news is that Photon Dynamics (Ticker: PHTN) issued a press release this afternoon stating that the Committee on Foreign Investments in the US (CFIUS) has approved the merger with Orbotech (Ticker: ORBK). The deal is expected to close on Thursday, October 2nd. Orbotech will pay Photon Dynamics $15.60 in cash. My gain from this arb play will be ~ 14.30%.

Now with most of my arb plays winding down, it’s time to regroup and evaluate a new trading strategy in this type of volatile market. I’m going to revert back to the good old CANSLIM strategy developed by William O'Neil.

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