2 Momentum Buys

Comforted by the resiliency that the indices are demonstrating, I stepped outside of my comfort zone and purchased 2 high flying momentum stocks: Valentis Inc (VLTS) at $3.36 and Suntech Power Holdings (STP) at $32.30 which was in yesterday's hindsight report. While I bought them after they had already made significant moves, I set tight stops right after purchasing and they are both even (minus my darned commissions of course....) as I type with 2 hours left in the trading day.

Valentis released a press release after market hours on Tuesday claiming favorable results on its lead compound in Phase IIb placebo testing. Valentis' drug is being designed to fight Peripheral Artery Disease (known as P.A.D.), a debilitating disease affecting 8-12 million Americans. There is very limited treatment and with VLTS 934 you only need a dose once quarterly, with equal or better efficacy than current treatment options. The Phase IIb testing was supposed to be completed in mid-2006. The company has plenty of cash and should have no problem raising more as they approach Phase III testing. While I have set a tight stop, I would like to hold this stock. However, if it looks weak going into the close, I might close the position today and look to get back in later. DISCLOSURE: The firm where I am employed owns a small position of VLTS.

Suntech Power Holdings: What can I say...it is a high-flying Chinese alternative energy stock. I'll be honest, I do not know too much about this company except that it is moving strongly to the upside and is in a popular sector. I have a tight stop and will probably sell before the close, hopefully for a gain. I am slightly up now.

Please read the Trading Almanac DISCLOSURE