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The Case for Buying HD at $23.42

I've been buying more HD recently.  Today, it closed at $23.42.

Tonight, I noticed somebody spent $325k to buy 25,001 HD Jan2009 37.50 Calls, so I had a look at the recent housing data.  Here it is:



A picture is worth a thousand words, so look at my pictures.

In Chart #2, HD is sitting on the long-term support line, imo.  This means I'm going to increase my rate of buying the stock if the stock remains at (or goes below) today's prices.

Do your own Due Dilligence, but I'm just telling you what I'm doing.

- Vooch

By Vooch at 2008-06-30 20:43 | Stocks | Vooch's blog


Now... let's overlay U.S.

Now... let's overlay U.S. Popluation Growth over the past 40 years (right Y-axis), and what we may be seeing, is the bottom in housing because the population is still growing:


- Vooch

By Vooch at Mon, 2008-06-30 22:11 | login or register to post comments

In this

In this chart:


I am removing the effects of artificial demand, by raising the secondary Y-axis to 450,000,000 (to lower the orange Popluation line below artificial demand) so you can see what it looks like.  To me, this is a better represenation of the 4th chart I drew.

- Vooch

By Vooch at Mon, 2008-06-30 22:25 | login or register to post comments

I found an error on the

I found an error on the Legend for the left-hand side Y-axis (it's in thousands, not millions).  The corrected version is found here:


- Vooch

By Vooch at Tue, 2008-07-01 01:59 | login or register to post comments

Don't be a pig.Take some

Don't be a pig.

Take some profits here.  Today, I sold some HD at $28.51/share.

I'm taking a 20-25% profit today (5-week holding period) and loading up the power keg, so I can bash Mr. Market in the head again with a baseball bat another day.

- Vooch

By Vooch at Mon, 2008-08-11 13:14 | login or register to post comments

>  Take some profits

>  Take some profits here.  Today, I sold some HD at $28.51/share.

If you listened, you just saved yourself a -4% haircut this afternoon.

- Vooch
By Vooch at Mon, 2008-08-11 15:28 | login or register to post comments