Monday, November 05, 2007

Quickie: Interactive Brokers (IBKR)

With markets in a state of flux as marked by recent (and increasing) volatility now can be a good time to step back and take a look at other strategies to work your money in the market. Trader's narrative wrote a nice piece on Interactive Brokers (IBKR). Babak's piece has identified a great dollar-cost-average candidate. The head-and-shoulders pattern he illustrated may/may not come to fruition, but the stock is forming a solid looking base - a great time to drip invest in the stock. The advantage of the dollar-cost-average approach is that most of your money stays in cash, so timing a bottom becomes less of a concern, and once the market (and the stock) finds strength one can look to increase the investment/average up. In this case, one would look for confirmation on a break of the head-and-shoulder neckline with a second chance provided on the break of the IPO price.