Come on in and see what DJIMSTOCKS.com is all about!. This week only (April 21-25) with the market rallying and a flurry of earnings to be released, we are opening our member only site to the public to come and see what we've been trading day in and day out in 2008. It's been the year of the commodity trade so far and we've been hot on its tail with our favorite Steel , Coal, Ag'Chemical stocks and anything that resembles a momentum sector/stock trade.
There is no need to sign up, no passwords to wait for, just come in and browse the pages inside (listed below). You are only restricted from receiving the Journal, Daily Alerts-Comments by email and from posting.
Free Access begins Monday, April 21st, Pre-Market
]]>
In this festive Bear market season with another FED rate coming this week, we at DJIMSTOCKS.com are getting into the act as well. In the spirit of the FED, we are giving away an extra month on our 3 month/$145 subscription until March 31st.
This offer is also available to current DJIM members on 1 month recurring and 3 month subscriptions. Members may add the 4 month special to their current subscription end date. (prepaid).
To participate, visit the 'Subscribe' link at www.DJIMSTOCKS.com and proceed to the temporary 4 months for $145 special box (OPTION #3).
Thank you,
DJIMSTOCKS.com
We have to admit, that trading in 2007 has been a challenge. It's a challenge not so in the sense that it was difficult to produce a profitable year. It was a challenge because we have had back to back to back great years in 2006, 2005 and 2004. In the beginning of 2007, expectations were high among the traders but the results did not come close to what we had in the previous years. At least, that is the case with DJIM traders and many other traders we know. This year has been dominated with volatility. At the end of the year, you can say it was a trend less year. Stocks moved up and down in an exaggerated fashion along with the indices. The most difficult thing about the market this year is that no trend lasted for more than a few weeks at a time. We were constantly battling a changing trend where you literally didn't know what to expect some days you walk up to your trading platform in the morning or after lunch. A few things are clear though, we know the exact cause of this volatility, the sectors that are getting hurt the most, and we are still not through to start a new year.
Shanghai surprises, Housing bubbles, credit crunch, massive writedown, potential weak consumer demand, potential recession...... you can see what we have to deal with heading into 2008.
Ok lets go over a few things that have worked in 2007 that may give us the headstart in 2008.
Solars, many agree that this is the year of the energy stocks. As oil price crept up to $100, alternative energy stocks have been benefiting the most. To many traders, solar stocks are the reason their accounts are in black this year. It's true that this group has ran up a lot but earning side of things have been keeping up the pace. At this point, we aren't about to give it the end of the run up prediction. The key thing we are looking for is how some of the leaders in the group react to each others coming earning reports. Yes, this group can correct anytime now and they really should based on the way they have ran up. So far, they haven't been able to crack the major trend line so we don't believe they would until something dramatically changes the whole group behaviour.
Earnings winners, other than the first few months of the year, the so called earnings winners from small cap land have been scarce, very scarce lately. Many of the earning winners we noticed, however, come from the mid cap group where the action was the most fierce. If this is the trend that continues into 2008, we are basically not going to argue with it and we'd put most of our effort into earnings plays from the mid caps.
BRIC plays, this is the area which has been shining on and off in 2007 and we think it'll continue this trend into 2008. Lately, Russian plays have been very hot and we were pretty aggressive with them as you can tell from the number of mentions from nightly journals. So far, we have just been playing MELI (Argentina- latin America)and PBR from Brazil and those two are currently enough exposure from that region for us. In terms of China plays, we still have a bunch on our watchlist and we are just waiting for them to heat up again. A pre- Olympic fever may come. The year of the Rat is ahead of us and the "New kid on the Block' of 2007 in the trader/investing community should continue to provide trading opportunities.
Going into 2008, we expect a lot of "more of the same" attitude from the market participants. We have a Fed meeting coming up, FOMC minutes January 2nd and busy weeks of earnings reports just ahead of us. The dreaded Employment report comes this Friday and could be a spark either way. Hopefully, most of us have relaxed enough in this holiday and we are back to focus on the busy trading in front of us.
Let's get it on!
]]>This time of the year is for traders as prices are manipulated up and down as the desks are away giving some hedgies and retailers run over the mid-small caps. There are still a few days left for many possibilities, so we'd stick to the game plan and the stocks we've been mentioning for days to concentrate on. A few stocks of interest yesterday...
N, this has shown all signs of a volatile small float IPO we have traded before. This one could move fast as we saw Wednesday and yesterday it showed glimpses of wanting to move up again. We'd keep a closer eye on it today.
WBD, MBT..we've noted the strength of Russian stocks in the recent months turmoil, yesterday these two showed resiliency compared to the rest and flirted with NCH's or made them again. VIP, was due to a dip as noted because it was quite extended and is one stock that was one of those stocks that might have been a bargain yesterday. APEI was another. Now that GLDN is a non issue, the 4th musketeer has ridden up and made new highs late in the day on big volume, ROS. Chart, large volume should have popped on a few screens overnight. This a state owned stock basically and yesterday Putin had a few words of comfort for these types of stocks, plus they announced a new CEO. This might be back in the gap up mode.
So keep to the same mentality of using this time to 'make trades', the media geopolitical hype will make you think too much and the shorties will most likely play the sell before the weekend in case a nuke goes off. This market has given plenty of reason to put on a helmet on in the recent past, this is not one of those times ...besides, it ain't gonna help, so just keep on trading..lol
]]>If it's peace you want, then you are glad to know that major indices have held up well and many big cap stocks have either inched up or stayed unchanged, in a non volatile way. If you are like us who like to take advantage of this opportunistic time, then the only thing you'd be doing on a boxing day is buying and selling hot stocks online. People, if you are serious in trading like us, then you would've tied yourself to your chair during the last few trading days. These past few trading days have produced some of the best action since early October. And if you were hurt by the downturn in the late November period, then now is the perfect time to get some respect back from this market.
Basically we are about half way over this holiday trading and we'd imagine most traders would be back in force after Jan 1st. This gives us another 2 1/2 holiday trading days to do our thing. Right now, we are playing stuff that are currently in play. It is crucial that we stick to that theme for the next few days.
Solars, 2007 is the year of the solars and we think we'll carry some good momentum into the new year as well. Today's action seemed to be spreading all over the smaller and less established solar players which include SOLF CSIQ CSUN ESLR CTDC etc., while the bigger names seemed to pause to catch some breath, with the exception of FSLR. Yup, we are playing just about every single one of those smaller names today and we'd continue to play until the momentum stops. Keep in mind, many if not most of those less established solar names are still not proven in terms of earning track record. When some of these names reverse, it is crucial that you don't buy the dip thinking all solars are created equal and have awesome earnings growth. Buying dips on plays like FSLR STP JASO SPWR... have good probability that they will come back in a hurry. Buying dips on the smaller ones may get you into a situation that you'd lose another 30% before even seeing an uptick. Bottom line, you have to know what you are playing distinguish the type of plays among solar names.
MELI, then there's this one! If you cashed out last time after Cramer's mention, then today's the day to get it back. We alerted early in the morning that it looked promising but we did not imagine it'd pull a move anywhere close to 20% today. This one, unfortunately we have to agree with Cramer for once, has the marking of being a monster. Yes, it can definitely go into triple digit based on what we have seen with other similar type of stocks.
Bottom line, there's no need to go nuts with all of the hot plays out there and just trade the ones you are most comfortable with. Stay focused and stay clear headed, and we may just finish this year on a high note.
]]>Solars..SPWR FSLR STP JASO....SOLF CSIQ EMKR ESLR LDK...This is not 6 geese a laying, this is 9 ladies a dancing!. Following LDK margin shrinking report it was noted we'd be looking for a dip if it happened in this sector to do some possible buying. Hardly any dipped and instead just coattailed first out the door on RIMM's big day . This group did not disappoint Friday or Monday as set ups, NCH were abundant. Clearly this is where we want to stay and ignore the suffering in the groups like shippers, china stocks. Now..if the hedgies want to pump their book for this end of the year Q, we just might see another sector wake up..so keep eyes a movin'.
Russian stocks...VIP MBT WBD, this group has followed our blueprint here for the past week and more. The GLDN deal has been a definite positive for VIP's share price (37's-45) as we thought, not often you see the acquirer get such a reaction and we think this can go further. Low 50's, but not after a pullback of small sorts as the last 3 days have left it a bit extended. MBT, we were 'eyeing it back to recent highs' and we got that as it hit $100 Monday. Again, we'd use any pullback as a possible buy in. If the volume comes in this, we'd saddle up as the chart looks very good. WBD has been in a tight narrow range and with a little volume could spark again with another move upwards. The float, spreads are ideal for a low volume move in Xmas trading week.
APEI, LRN, N... last week we said these may be ideal for light trading days ahead. A sign of it was present in APEI as about 60K pushed it to a NCH with 4 pts in tow. We will continue to keep focused on these IPO's. Due to these IPOs stellar opening days, a sentiment change in the markets make for a perfect combo and so we have our eyes set on "N" , Netsuite. If the market tone continues to stay this way, it makes the possibility of N performing well greater. This new issue has some color!. It did a Dutch auction for pricing the stock which might have kept the flippers of a quick buck away. It also has color because of the money behind it in ORCL's Larry Ellison and a management team of former ORCL heads. This brings in interest from more traders or just investors with a fondness for ORCL or tech. If you're a Baseball junkie, you'll like or actually maybe not like that Oakland A's Billy Beane is there on the BOD to crunch the numbers and use their software..lol. The market cap might be big, but with the available float as it stands now make it interesting in the short term. It just seems sexy, especially following VMW success. We'll see...
Reminder
Reminder to our original members signed up for 3 month subscriptions that many subscriptions expire Dec.31st. Please check your Paypal receipts or your Paypal account, last day is before your last payment date. Last resort;).. contact us for date. Those that usually pay in advance, your subscription will run till end of March.
Thanks and hope to see you back for the start of another year together..
]]>
In our opinion, the market is ready to cheer for some good news. We now know what this market is capable of when good news is put in front of it. Basically there was couple of key events, an earning report from RIMM, a back to back with ORCL, and news of possible foreign cash infusion into MER. Big techs had strong positive reaction and financials also traded well. We have been saying this for a while that in order for this market to gain any upside momentum, we need companies to deliver earnings that show no slowdown in growth and no signs of recession. Also, financials need to go up on headlines, good or bad ones, or at least stay steady on the bad stuff. MS/ BSC trading firmed up despite the expected blow ups during the week.
The coming week is a short trading week and we have just 3 1/2 trading days to deal with. While we can assume that many traders have taken the week off to spend time with the families, we believe some traders may be taking advantage of the light volume holiday week to push some stocks around. We are looking at none other than the solar sector and any other stocks made the recent headline in a good way. The ones that have made the recent 52 week high are also high on our trading list.
A rundown here with solar stocks that include STP FSLR JASO SOLF CSIQ, popular stocks include AAPL RIMM MA, Russian stocks like MBT WBD VIP, and recent additions include RSTI LRN APEI are all on our top trading list.
We definitely had a pretty turbulent year but we can still end the year on a high note. Stay with the best performing plays because those may be the ones to get us off to a good start in the new year.
As we said above technical analysis is not enough, but with the DJIA and NASD closing at 13450 and 2691 respectively, we are getting more comfortable with the market. Last week in weekend charts, we noted"..The DJIA /NASD are below our comfort levels of 13500 and 2700 respectively, but since volume is expected to whittle down in the coming days... anything is possible. This includes big upside days that can easily get us to the levels noted and away from 13300....". Anything was possible as Santa seems to have gased up and we should move over the above levels into the New Year. Another possible positive technical scenario and a possible Bear stinger is the action in the small cap RUT, IWM as the down trendline from September might be busted shortly. The Bears might have a lack of blueberries to fuel on if we cross here. We are possibly entering the seasonal small cap outperformance of large caps into the month of January, this is probably coinciding perfectly with a break to be over the trendline noted.
A Merry Christmas to our DJIM friends and your families!
]]>Let's hope the ORCL/RIMM reports start to get the talking heads in pre-earnings mode and have some attention turn away from the subprime mess and on to earnings. This mess ain't going away for years and we need to move on.
]]>LRN, if you took your eye off K12 yesterday, you found a surprise on your next look as it probably jumped another $1 or more. We said this might see high 20's if it just got some volume. Guess what....it didn't need it as hit $30 and up almost 50% since we alerted the buy in the first hour of it's debut last week. Only regret and you could blame the weak market last week is we didnt go crazy into it. Ah..the great trader/investor motto...could've..should've..would've!. lol.. A pullback would be great as its up 50% from its opening price, but it just might be getting discovered so its best to watch the volume as a pullback might not be so swift for your first entry or a re-entry. We've taken most off the table and will look for the re-entry, in the meantime we dipped into APEI after it passed it's initiation day with a few nice buy targets. You can only dip as this is trading lightly and has only a 4.5 mln float. With all the messes out there lately, we think these educational online plays are under radar. Actually, they are the perfect stocks for a holiday buying frenzy if the manipulators want to drive a stock or two higher next week as in years past.
WBD, another recent buy in alert after earnings. This followed what we outlined here the past week quite well, it did look right the day before at 121 in a market where nothing was looking right and it hurled $124 for another entry before ticking up to 130. A nice run and it did hold up well, but as we've repeated over and over lately....take what a stock gives you and walk away. In this case it was more than enough. We'll look for re-entry here as well. The volume has not come in yet as it has in the past on runs and so we'll look for it with a break over yesterdays high levels.
MBT, we've been spreading out our risk lately and this means using foreign ADR plays (VIP,WBD as well), in specific regions like Russia. MBT, looked very strong yesterday and it held its break of the recent channel top. This one can move fast and we are eyeing it back to recent highs.
MA, really beaten up the last few days on the Euro ruling for months and months to come. In the near term this should affect MA's profits as it does not cover the majority (over 90%) of MA's volume. Ma should get back on track after all this noise is digested.
Solars, LDK guided EPS in-line, a downgrade and what you might have is some pressure on solars. We'd use any negative reaction spreading to take advantage of the dips in the usual suspects. These plays are not going away by a longshot in the short term.
]]>However, it's enough to cause jitters among the market participants and the technical picture isn't good at this moment. Basically, whatever the upside momentum we had prior to the Fed announcement is no longer there anymore,the market got rolled over. We have broken some short term support and today's pop is just to get off the recent oversold condition. As a matter of fact, Q's almost reached November low intraday. SPX isn't quite at the November low yet but we feel the probability of testing it has increased substantially. Unfortunately, any testing of markets recent low's will probably be pushed into January of the coming year. Can this negative momentum be stopped still? We think it's possible but it pretty much has to rely on two things. One, the financials have to stop going down and react positively to news (good and bad). Two, some of the key companies have to come through during this earning quarter. They have to demonstrate that not only there's no hint of a global slowdown, everything is still firing on all cylinders on the growth front. Make people believers! With those two things in place, we can probably come out of this downturn and establish a rally which we've been long wishing for. As you can see, we still have a few weeks before we know for sure where this market wants to take us.
In the meantime, there are still short term trades that can be played among many of the familiar ones. Solars, we'd continue to trade this sector aggressively and we'll stay this way until the next round of earning reports. We'd try to buy more often on the dip these days as oppose to chasing the breakouts. FSLR had a really nice bounce off yesterday's selloff. LDK is inching up ahead of the 3rd q earing report Wednesday. As far as CSIQ goes, someone just lit a fire underneath it midday. EMKR, is also in the secondary solar loop now since announcing a contract last week.
Some of the foreign stocks also did well, especially WBD, a buyer was definitely present as any sizeable lot was taken out pushing to highs of day. Remeber this one is volatile, but usually worth the headache (look for possible interest to come in $124 area for further upside as noted before). VIP, MBT came out with subscriber metrics yesterday and are hitting on all cyclinders. If the GLDN combination occurs this is a definite positive to VIP and its share price as well. We'd continuing to trade these as there is less exposure to the problems here.
The bottom line, we have to differentiate the overall market direction from the individual trading opportunity. It means that although the market trend is uncertain or downward biased, we can still find good setups still for short term trading. The key is to stay flexible and be ready to sell when things don't go your way. The end trading result may not be like holding small cap eps winners in the past, but it is a way of survival in this particularly difficult trading environment.
]]>
Lets talk about what happened in the past week first. The action from past week is purely centered around Fed decision and we can understand how market participants feel after the decision. They have a hangover. In our opinion, unless Fed surprised us in the optimistic way, this market would get sold off regardless because as we had come off such a good 2 week rally from the November low. In terms of Fed's decision, in our opinion, they are doing the right thing even though it may not be "instant market friendly" kind of decision. The bottom line with the Fed is that we have the Fed on our side still. They aren't being ignorant contrary to many people's thought and they are simply being patient to help out the financial crisis. This of course isn't being bought by everyone because many wanted that "magical potion" from Fed that can solve all of the problems once and for all. Believe it or not, many if not most of the problems associated within the financial sector still need to be addressed and resolved by the companies involved themselves. In other words, market needs to do the most to bail themselves out. This is only healthy in the long run.
Too many people are too negative toward this market and too many shorts have piled onto the recent upward momentum in our opinion. Basically, we believe that when you want to trade this market down, you definitely want to do it with good timing. First of all, you want to go negative really hard at the beginning of the crisis and in a seasonally slow environment. Right now, there's definitely no saying that we are at the end of the crisis but we are definitely far from the beginning of it. People are fully aware what the problem is and measures are being put in place to correct the problem. It does take time. However, you don't want to go really short when things are being fixed, slowly but surely.
So against all odds, we think the second possibility is that this market churns upwards has much better probability. In order for this market to dive and take out the November low, you'd need some really disastrous news or the proof that we'd go into a real recession to do that. Somehow we just don't think any of those two things is in the cards at this moment. At least, not during the Christmas shopping season, we might add.
Earnings Earnings and Earnings! What more confident catalyst you need other than earnings? We have them coming up and the way this market has been setup, anything better than the lowest expectation can cause a good rally upside. Of course, that also depends from company to company and sector to sector. Last week we had LEH reporting and we have to say markets reaction has been very positive, despite the drop of all major indices. In the coming week, we have GS reporting and this is considered best financial house there is. Again, the way it sets up is that the shorts wanted to push it below $203, which is the recent low and knock it down for good. If this stock is at $240, we say the odds of getting sold off is pretty high regardless the earning number. In our opinion, the trade definitely calls for the upside when the number is released. The next important report in the coming week is RIMM. In our opinion, the recent 20% drop from the $122 area took away any bearish surprise. It feels that shorts have pressed a bit too early going into this report on the heels of a couple of firms analysis of RIMM. It is "unlikely" that RIMM would report a slowdown in its business and we can almost ensure a massive squeeze if it doesn't play out the way bearish camp wanted. There are quite few other reports in the coming week which include NKE FDX MS BSC BBY ACN JOYG GIS... quite a few different and important sectors. This should provide us a good picture whether our economy is heading into a recession or not. Again, we believe in our thesis that market rarely goes into a crash into an earning season. Basically, we'd be much more nervous being short than long at this point.
Now some plays....
Solars, is it us or does it feel that most if not all solar stocks are being setup conspicuously on Friday? Just look at some the chart setup from some of the popular names and we swear they are all setting up for a good run-up in the coming week. By the way, they are being setup(in a very positive way) on a day that all indices dropped well over 1%. This is simply amazing which tells us that people want to own these things at year end. Basically we still have a bit over a week to window dress these names and it isn't a myth that the best stocks get owned at the end of the year to show them on your book.
STP/FSLR/JASO/LDK, these are what we considered the favourite solar names to trade last week. With the exception of LDK EPS Dec.19th, which we are still waiting for the audit report to cast away the cloud, a start today as (independent Audit out according to LDK concluded allegations incorrect), the other three are being setup superbly going into next week. YGE, IBD #92 is also enjoying a nice trend change.
SOLF/CSIQ, these secondary solar plays are also setting up nicely, especially with SOLF. The 9 ema has just caught up with SOLF and the next move might be big and will likely get this thing out of the recent trend. With the entire solar sector heating up, we feel the move is very likely to be up than down. ESLR had 2 nice days after Thursday premkt upgrade and follow up news.
Asian stocks, as seen in charts this weekend they took the week off after a 2 week recovery, following overnight numbers from HANG/SHANG they will most likely continue to be out of favor to start the week.
LRN, 300k volume and a higher finish on day 2 of trading. If this thing had any volume Friday, it might be already looking at the high $20's.
MELI, this is the play you only can wish we'd all bought more of before Cramers mention. On the other hand, this is no longer a strange name to traders and with its tighter float and story, anything is possible. Basically, this one is better now with Cramers exposure than before which is largely an unknown stock to many. The trading in this one is rather volatile so we'd continue to be inclined to buy on intraday dip and sell into strength. It has worked beautifully in the past so there's no reason to change the strategy with this stock. The trend is firmly to the upside since the break at $45.
RIMM, we've been buying some late in the week looking to hold up to the earning report and then play after its EPS is digested. Again, in either case, if this company reports a good number or the market rallies, we'd be all over this beta name along with other heavy favourites like BIDU AAPL GOOG etc.
VIP, MBT..also seemingly against all odds these were green on Friday, closing around highs of day. Another Russian stock, WBD pulled off another impressive Q with what looks like their best EPS number yet. Again as we 've seen too many times lately, nobody was interested in earnngs, this time because of CPI data headline. Simply, you had pockets of strength to buy...the solars, the biotech, the russian stocks late in the week despite the volatility to the downside in the overall market.
Bottom line, this is the time where you have to be playing the most popular stocks. We have seen it that the small caps aren't exactly working so you might as well join the crowd. The more crowded it gets with a good mover, the better. We can even see it with some of the recent story stocks from the biotech sector like RIGL SVNT BMRN etc. You trade what others trade, when a stock is showing upside momentum that is. Only then, you'd have a chance to outperform others.
]]>
LRN, K12, how cool a name is that!;). Anything/anybody to help the kids from Kindergarten to grade 12 surf online other than us is a great concept!. Okay, so its a little more than that as LRN offers a 'real' curriculum of educational services, lessons. A virtual public skool alternative to supplement the kids education. A recent educational IPO, APEI serving the military/law enforcement had a big run since it IPO'd as we noted with LRN today in the $22's. It had nice full day trading to the $25's and we were trading/taking positions throughout the day. A 6mln float makes it attractive to boot.
MELI, a long standing citizen here and a recent alert this week at $45 was making some people very happy last night as it traded to $58 AH's off Cramer. It's only a recap if you are not trading it this week as it's held its ground near highs through all the volatility we've seen. We have always liked to sell to an incoming herd from another source.
MA, another long term play here and again highlighted a few times this week hit a NCH with a $224 close with a converted touchdown and field goal day..10pts. No yellow flags with this machine.
Solars, we highlighted this bunch into the trading day and it was really the only 'group' action going with FSLR, ESLR leading the way off the upgrades mentioned in the morning. JASO, SOLF, YGE all held green as well and if we keep seeing this group up, STP, SPWR will join the ranks again.
MBT, VIP, after making NCH's recently they have tested 9ema and seem ready to resume if the market gives them a chance. The telecom sector has been one of the leaders on bad days in the market and with Russia's political picture clearing up it should bode well for these ADR's soon enough. These have always held up during the rocky days of November. ROS, a secondary play on the above when we started coverage back who knows when is a clear beneficiary as its practically a 'state owned co'. The other two offer volume and so we'd continue playing with them.
RICK, so this is where all the bankers are striking up liquidity plans these days!..No wonder they have no $$$$. This one just keeps on doing a slow dance up.
GXDX, no big surprise the traders didn't show up the day after EPS. We've outlined numerous times recently that small/ float EPS plays are not getting the love immediately as we have been used to in the past. The chasers are still not there as we saw today and since this stock had a very nice pre earnings run, its really not surprising to see profit taking come in. Keep it up there on your potential playlist. A pullback always balances your risk/reward out.
Oh yeah, RIGL, wait till phase 3 comes out, it will go to $100..;). The beauty of this action is there's crazy foolish money out there still to play feverishly and we like that. Along with interest seen in the IPO LRN, it gives us more hope in the coming weeks for plays as there is a willingness to put money to work. It's sporadic now and sometimes doesn't last too long , but that could all change as spreads widen in more names when the volume starts to dry up into the New Year.
]]>Solar plays, basically you just can't go through a trading day without playing these it seems. Crude broke $90 signalling a possible technical recovery and that should bode well for the solar group again. LDK has been active the last couple of days and think this one needs to catch up to others in terms of valuation in light of the recent development and therefore might have more leg room. SOLF is also becoming one of our favourite to trade along with STP JASO and FSLR. Again, remember we noted the upgrades seen recently as a possible prelude to their action as we've seen in the past. At least, 2 more are out this morning, including one on FSLR with a $300+ target.
GXDX, this is a biotech co. similar to WX and it's based in U.S noted in the forum Oct 31. It came out with an eps report tonight and we think it's a very good report that showed a tremendous growth rate. The issue size was only 5 million shares. This one also doesn't trade a lot so the volatility can be high when it comes to trading. Knowing what they just reported, we are putting this one on our active playlist and will add incrementally when opportunity comes. There hasn't been many good eps report from small caps lately, so this is definitely refreshing. It will be interesting to see if there is interest in this kind of play from the market.
Turned out the prudent thing to do yesterday was to sell the gap and not just consider it as we noted in yesterdays pre trading note. The swings are wild and you have to your trading hat on or lose all or most of your gains as the market digests the rate cut and the follow up liquidity plan. It may take a few more days and it's best we wait it out to see a trend emerge. Again.. .."what we need to see is the indices recover and hold 13500 on the DJIA and 2700 on the NASD to start thinking of accumulating positions of substance". This would be a start!
]]>On the technical side there is no great damage, but what we need to see is the indices recover and hold 13500 on the DJIA and 2700 on the NASD to start thinking of accumulating positions of substance. The markets were in overbought territory, the noise of a sell off on the FED was echoed over and over recently..add a few surprises in the actual decision and you have a sell off of magnitude. Fortunately, we are all used to negative 250/50 days on the indices for the past few months and can deal with yesterday without yelling fire and running away from the market. Hey....maybe this was healthy if thoughts of prolonging this recent rally into the New Year cross your mind. Time will tell, but in the very short term we need the market to show us something...some more of that grit and determination would be nice before we go diving in with any force.
]]>