Just Like That

"The most valuable commodity I know of is information. Wouldn't you agree?"
--Gordon Gekko (Wall Street)

In the span of a couple days, JNJ has vaulted from the bottom to the top of its trading channel--unusual for such a low beta stock. Primary impetus was a rare triple analyst upgrade day yesterday that sent the stock soaring more than two bucks higher on huge volume. Today saw nice follow-thru.

btw, note the big volume rehearsal higher off the 62ish level on Tuesday--a day before the analyst upgrades. Looks like some folks got the word early...

While I like the price appreciation, I'm currently in acquisition mode. As a buyer, I prefer lower rather than higher prices.

After the quick run up, and stochastics reaching overbought territory, I'll be prone to sell some of my higher cost shares should we jig a bit higher. That will leave me with a lower cost basis for my remaining position, and capital free to take advantage of future price weakness (if/when).

If, instead, JNJ heads to Pluto from here, then I'll participate--albiet in smaller size.

My sense, however, is that chance favors lower prices down the road.

position in JNJ