Mind the gap!

My plan this week had been to go long an AIM listed company, Air Partner. That is, until I saw the spread from my broker. The gap between the buy and sell prices was approx 5% of the share price, meaning that the share price would have to rise 5%just for me to break even, so I changed my mind! I have elected to go long EasyJet instead:

2015 04 11 Easy Jet

Why am I buying Easy Jet?

  • the ma20 is above the ma50

  • both moving averages are rising

  • there are a series of higher highs and higher lows in place

  • it looks like is trending upwards

  • its Stockopedia rating is 94 (100 is max), meaning that essentially it is a good buy, considering the quality of the business, the value of the share price, and the momentum of the change in share price (QVM listing)

  • the spread on the buy and sell prices is minimal (it's a FTSE 350 company)

I have set a stop order to go long Easy Jet this week. Mind you, I still quite like the look of Air Partner, and its' Stockopedia rating is 98, so I might buy it anyway, on the assumption that a 5% spread is worth paying.

For those of you who read my last post about stop orders, you might like to know that my stop order to buy Plus500 was eventually triggered last week, meaning that I bought in at a lower price then I would have done the week previously.

For my thoughts about the markets during the past week see this video (3 mins)

To find out how my open positions have been doing this week click here (9 mins)


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