Merry Christmas...

to everyone and especially those who have stuck with us for the last couple of years.     Hopefully, this will be home for us for a long time to come.     This is actually the fourth "green" christmas for us since we got together from the swamp days.    Hope all the DJIM readers enjoy their holidays as much as we do.

FFHL, this one is a definite stunner to cap off the day.   Alert was sent out in the afternoon as we thought this one may have a chance to close high.   What we weren't sure is that it would actually take out the old high and also close at the day high as it did.  It sure looks good for Tuesday.

This whole week has been the "easy money" week.    There are plays out there that we didn't need to care about their biz and stories, as long as the action point to the same conclusion.    

cheers, 

DJIM hold/ hit List #19

In most cases, stocks have continued retreating during the second last week of the year.   This is understandable given the kind of market we've been through.   For many people who are making their year end tax moves, the last couple weeks of the year is the time to get it done.   Both of the profit and losses needed to be realized and both will have to come in a way of selling.    So, a pullback in the indices may be the indication that people are just doing that.     We at DJIM here are doing just exactly that, taking a breath from this market and resting ourselves up for what could be a busy earning season.    Yup, earning season is almost upon us again and the coming quarter is considered to be typically the second strongest quarter of the year.

One thing we feel that we have to point out to our readers is that we DO NOT hold through earnings with our DJIM stocks.   Most of our plays are considered IBD type of earning momentum plays and the one very thing that can break them is THE earning.   During the past week, we've seen it with IAAC and MIKR.    So what happened if you get caught holding through, whether intentionally or accidentally, we think the best thing to do is to just move on.     There are just gonna be tons of new plays on the horizon and there's absolutely no reason to hold onto a broken pipe.     How about playing for a bounce, or 50 ema bounce, as some of you may ask?    We think it's better to leave the leftovers to those who actually enjoy them.   For us, playing with the best setups, and playing with the current plays are the only things that matter and from which we get the biggest rewards on.   As you can see, we have no problem coming up with new and exciting plays every week and even every day in a good market.      Our mentality and our approach to this market has always been that we let the plays "come to us" and the nature of this market is such that there'll always be new plays coming to us.    We just have to be there to catch them, early.     So digging up old beat-up plays, leftover plays, and other "left for dead" kind of plays, are not worth our time, effort and capital.     This is the very reason that got us to this point and why this site exists.

In the past week, we had some wild action from ESCL and some steady action from OPTM, FSYS, ZOLL, GLDN, POWL, ROS....   Even though some of those gains did not hold till the end of the week,  it's just down right silly not to take advantage of some of the intraday gains.   Think about where you have started trading them and where they had been during the week and how long it took for those gains to realize.     To cap the week off, we had a super strong close off a Chinese IPO FFHL and our second timely alert on it.   Most of us are probably excited to be back tomorrow just to trade FFHL.     In any case, FFHL may be the focal point for many traders for this shortened trading week.

Lets talk about FFHL tonight...

Obviously, FFHL is an attention grabber today and there's no doubt that many of us are involved trading them.    So what we gonna do tonight is have a question/answer type of format to hopefully address most of the question concerning the FFHL play today, to the best of our knowledge.    So here we go...

so what happened to the stock during the last 30 min.? -  Do we really need an explanation on that?   The simple fact is, it was dumped!

So how did FFHL close today?  - For a momentum stock, it closed pretty crappy.   As a matter of fact, it looked pretty ugly near the end.

Is this kind of action common for this type of play? - Yes, it's very common for this type of play.   You have to get used to it and know what you are dealing with and therefore set the trading strategy accordingly.

So why did FFHL go up at first place? - Well, we think it's a combination of this co. being a recent Chinese IPO and low float that got picked up by many momentum traders, including us.

Does this run-up have anything to do with the fundamental of the co.? -  Nope, absolutely not.    The same kind of traders who trade these are the ones who would also trade EFUT, MAMA, etc.    This kind of a play is about as speculative as it gets.    This one is probably on many trading forums' agenda today.

How does the volume look today? -  We thought it looked pretty toppy.   Twice the float has been churned and stock closed way down from the opening price.   Typically this is not a good sign, even though the stock is still not that far from its IPO price.

Does it mean that FFHL's run is over? -  We don't know!  At this point, probably not.    We think the easy money should've been made already.   Then again, stock behaviour often surprises the most seasoned traders.

How does DJIM approach this play at this point? - well, the bottom line is that we started playing at $10, and so should many of you.   we've locked some big gains today and will watch this one closely for any further development.     As always, we'd let others take the risk and battle it out  while we just wait for the easy and obvious setups to come up.      We are looking for a break of $14.80 for a flip and over $15.75 for some serious momentum.   

The conclusion, Don't get Greedy!    The fact that you found them at 10 bucks here should not keep you from being trapped in this play, ever!    Imagine yourself finding this play out just today at $15?      Also, FFHL, like EFUT ESCL.... are not typical DJIM bread and butter play.     We play them because the opportunities are there but we do  let readers know the RISK involved in trading them.    These are super speculative plays and momentum works both way and the stock can reverse on any day at anytime.    This definitely requires, in our opinion, a full time traders' attention to trade them successfully.   This is the reason why we also don't give out sell alerts on these as things just happen too fast.    But since we do give out our buy alerts early enough, there's no reason even for a rookie to make a buck or two out of these wild plays.

Ok, tomorrow is gonna be another day and hopefully it won't be a dull day.    We are keeping our eyes on many familiar Asian and Russian plays to see any sign of further follow through.

cheers,

Holiday Trading....

A few things traders know about holiday trading are that volume can be low, trading can be thin, and stocks can be pushed around without too much effort.    Still, we still feel that it's our responsibility to spot those trading opportunities and especially those with a clear setup.     Since we are not big enough to push around any stocks, the only thing we can do is to spot signs of an early push and get in before the mass discovers them.    Here are some notable ones for today...

FSYS, you kind of get a feel of "it's just a matter of time" before it gets pushed higher.    We reviewed the breakout last week, the similarities to Novembers push from a range and alerted everyone today about the follow through early..just at over $21.  What a follow through it did and it came off super strong volume.     This one is looking more and more interesting to us and the highs are near.

GROW, momentum just won't die in this one.     Did people think that this one will follow IAAC's steps?   Maybe eventually!   But as of the close tonight,  it's ready to challenge its old high and beyond.  We've hit the last 2 rushes, hope this is number 3.

Last night we said we were looking for follow through on the Chinese and Russian stocks.  In DJIM land, the Russian telcos are GLDN ROS MBT VIP. The latter two started this run, the other two have taken over the run. GLDN ROS both here at $38, now sit nicely at 46-47 levels, each up over 20% since put on DJIM.  The big boys reversed big time, especially MBT which just closed off a NCH.  The downtrend was broken early on today for VIP/MBT. 

The Asia-Pacific DJIM stocks have been MR, EDU, HMIN and JST.  We've had enough runs with MR/EDU for the time being but that could change tomorrow..lol...We just think it is HMIN that still needs some discovering and might have further to go in the short term.  We also like its chart best.

To really feel the holiday trading...we are trading ALXA(10.83), HLYS(32.35), EFUT(37's) more on the speculative side of the books.  Of course, the EFUT rumor is probably just the usual holiday games being played...but still a break of the downtrend can possibly create some more points to the upside in EFUT and HLYS...just look at MBT today.  Keep an eye out for recent DJIM names like ABM, OEH, POWL that are approaching recent highs intraday.. here and there.  We just had GLDN tack on a couple of points and the FSYS pop off what are alerts approaching important highs.