Add-on Buy:(GU)

Today I added on to my (GU) position with a second buy at 16.933 - 5% above the buy point. This raised my cost basis to 16.50. I believe pyramiding up is the right way to build a position, but have to admit I find it stressful. Just when a stock I own moves enough that I start to feel comfortable with it, I'm buying more (albeit a smaller buy than my initial one) and raising my cost basis. In fact, (GU) faded this afternoon below my cost basis, then came back enough to just barely close above it at 16.57. It did stay above the 16.16 buy point today, and again traded on big volume, both positive signs.

The market itself showed some positive action to follow up yesterday's bearish reversal. The Nasdaq was up 1.5% on higher volume than yesterday, and above average volume which has been rare for several months. More importantly, after reversing when it hit the 200 day moving average and closing flat yesterday, today the Nasdaq passed that key resistance level and stayed above it - that it did so on higher volume is quite positive.

I'm pleased too that there seems to remain a healthy level of negative sentiment out there. For whatever reason, the market likes this. The strength of the Nasdaq could begin to yield moves from industry groups outside of energy and agriculture, adding further momentum to an already resilient market. As always, the landscape can change tomorrow, but for right now this looks like a healthy uptrend.

-Geoff