Up until this point, we have to say that we got more than we bargained for during the last few weeks. Market has been extremely good and we had no shortage of good runners and a few super runners. A quick glance at BT's charts, DJIM list#13 from last weekend and you see what a week DJIM had. We introduced some new blood at the open during the week, EXLS, ZOLL to go with the GMKT, EDU, DLB, GROW, EFUT, AAON, ATNI already on the DJIM list from last weekend. These days are the reason why we trade, this is also why we have no problems going 100% cash when our gut tell us to. Animal instincts, pile a stash for the harsh weather. Some of these DJIM stocks definitely need to consolidate but new opportunities are popping up left and right, so it's best we/ you do not have your cash wrapped in something not participating or moving. Thanksgiving trading week could add some fuel to the fire, this is why we've kept the charts of EFUT, CAAS up for more trading opp's...maybe this is the week...You see when the gnomes leave for turkey, the retail kids like to take charge of the house on a few names and run them up...basically taking a turkey and stuffing it with MOMO for a day or two. A good chance is the theme of the C-team, China stocks continuing on. Many of them provide a nice float to move. You spend lots of time trading and learning and going through countless emotional roller coaster throughout years of dealing with this market. Thankfully, a month like this would make all the hard work you've done in the past seem worthwhile. We are going to highlight just a few stocks that stood out going into the weekend concentrating on the Asian theme.
JST, we played this stock a while ago and someone lit a rocket boost behind it on Friday. Is this all because of the asian theme? We definitely think so to go with the earning thrown in. What may added fuel to JST is the IBD rating and it's not a total surprise to see it show up on IBD 100 this weekend, #73. Unlike the other IBD plays floating around in the last few weeks, MEK BTJ ALY, we think JST may have some more momentum to go. Why? JST is not oil dependent, and it's in a sexy region! This is something we pointed out Monday, a look from the oils to China stocks, well now its spread to Japan a bit. But most importantly from the trading perspective, it's being discovered by momentum crown based on its volume on Friday. Ok, so momentum doesn't go up one day and die down the next day and we definitely don't think JST is one of those one day wonder either. How are we gonna play this one? The bias is definitely on long side and we will be trading it aggressively. We are also seeing a trade around CHDX and BIDU, primarily we are interested in the CHDX action.
MR, if the earning reaction isn't exactly explosive, then we can say that we are glad that the earning thing is over. MR went up on its own Friday and had a NCHigh after being mentioned early in DJIM Alerts. We like this one very much and added on its advance. Again...why hold a stock into earnings, better to have free cash and possibly dig up a EXLS the same day. You can always buy the MR back, we've been doing it since introducing it late September at 16.40. It was a frustrating stock at times but now up 30%.... it's all forgotten with the possibility of more on the horizon!
GMKT, hit $25+ Friday after getting a DJIM headline November 9th has provided many opp's to enter in the 19's-20 since. Late last week buying the dips was a buying opportunity as well. The stocks price and daily volume keep riding the tide... higher.
TRT, this might as well be a foreign stock as it does the majority of its business in Asia. The stock has been in a tight range since exploding off earnings with DJIM in tow from the $12's. The thin market might be the right recipe for another leg up this week. Although a quick dip to the 9ema is a possibility with TRT, a potential buy point again. The other choice is to buy a confirmed breakout which is not far off either. Volume is key here, both ways. You want it slow and easy to the 9ema, you want it hard and fast into the high.