..Recycling...

Despite a weak report from Freddie, market held on strong on the heels of a 300 point gainer day ignoring the Freddie usual seen backlash.  Unfortunately, AIG's AH's report might be an excuse for some backlash.  As we said yesterday, now that we are back to the area where previous breakout attempt has failed, are we simply witnessing another head fake move?    It's possible that we stall right around here as we come to the resistance noted, but it's also possible that we make some noise and perform some unthinkable action, and that is rally to the upside for some late summer fun.  Hey, if Favre can end up a Jet, anything is possible!

One thing we have noticed or witnessed in the past few months, is that market cannot rally without the participation of the financials.    In fact, every big move in the past few months has been led by the financials.   Judging by this pattern, unless the financials, as a group, move 5 or 10% higher,  it is unlikely we'd get some meaningful action after this recent 300+ day.  It is hard to picture large cap techs act like a catalyst as they did today for an extended period.   However, we are noticing some of the popular names are being recycled right now and are being played potentially on a daily basis.   Stocks like RIMM alerted today and BIDU are some of the stronger names with an interesting setup.   Yes, it is boring to trade stocks on just the technicals,  but it does provide traders some incentives to sit through the day.

As far as commodity goes, whenever the storm finishes, you always seem to get a couple of sunny days.   We are not calling an upturn of the commodity sector here just yet, but $CRX bounced nicely and many of our shadowlisted stocks had a good day, especially in the morning.   We are simply pointing out here that whenever the oil is stabilizing, we'd have a pretty good probability of running up a few points from some of our favorite commodity plays.    One day at a time,  this is the mentality we have to remind ourselves to stick with.

EBIX, one of the best earning reports from a mid cap came from this thinly traded stock.  It's unfortunate it's so thin, but if you picked up even a few shares after our 'eye' alert August 1st, today was pay day.  It never hurts to get a some shares off a great report and just wait it out and sell into a substantial move or just hold on for an investment.

ICLR,  this stock was an original DJIM play, it manages clinical trials for drug and biotechs and is therefore in a pretty safe place for this market.  If you invest and than not just play fast stocks, than this stock like EBIX may fit into your book.  ICLR was $35 back when we went online, with no hiccups since, so you can see this has investment value besides a nice chart to possibly trade now.