New Buy:(SNDA), Addon Buy:(ARST)

After keeping my eye on (ARST) for a few days after earnings I decided to rebuild to a full position in the stock again, picking up a third of a position at $17.44. The stock has been holding a nice zone during the weakness in the market lately, which I believe points to relative strength in this stock.

I also purchased (SNDA) this morning as it's finding support at the 50 dma. Recently I've decided to take a more aggressive approach with stocks finding support at the 50 or 21 day moving averages. I have more success buying early in this situation than late. Waiting until the stock clears a new high has shaken me out of several positions, and would've with (ARST) as well. It was the lower price I got on that stock that kept me in it through some of the volatility.

Additionally, as I watch the real leaders of this market, such as (FUQI), (STEC), and (GMCR) for example, they've given entry points at the 21 dma. I think that I know a titan stock when I see one, and should not be afraid to pick up shares at a pullback to the 21 dma with these stocks. I will still use my 5% stop loss and actually feel more confident buying at a key support level than at a pivot point that I've seen show little support to stocks.

The action of the market is still a question mark lately, but as long as we're in a rally I will continue to buy stocks, carefully. I think the low volume of the summer can cloud the signals the market is sending, and it's likely that we'll trail a bit sideways until the fall, but of course I can't predict that. I actually have two stocks on my watchlist that I'm willing to buy if they continue to act right, and then I will cut the weakest stock(s) from my portfolio and hold those that perform. Because I have no great confidence in my ability to pick an individual stock, I'd rather cast a slightly wider net and just let go those stocks that don't act the way I'd like. I don't mind using margin to do this for a short time, because I have my stop loss orders so tight. I just try to keep my capital risk fixed at any given time to an amount I can live with.