The faces, the symbols may change but one thing that doesn't change is trading the probabilities that are in our favor. This simply means going with where we see momentum. Yesterday was day 1, today was day two in trading where the probabilities for profits were in our favor. One theme that emerged yesterday was the Russian telcos, we didn't see it in print or hear anything about it later, so may we were a little delusional at the onset yesterday. But then the action spoke as MBT's earning really spilled into other names, one being VIP. If the premise is correct, one Russian bear does well, so should the other. You all know how this works when ones news vibrates to another. Well, VIP did not disappoint, beating handily today Vimpel Comms beats by $0.27 (VIP) :Reports Q3 (Sep) earnings of $1.32 per ADS, $0.27 better than the Reuters Estimates consensus of $1.05; revenues rose 21.2% year/year to $1.36 bln vs the $1.29 bln consensus. If you believed and later saw the probabilities of these companies piggy backing off each others EPS numbers, then you have been quite the point collector..as many as 8 or 9 pts off the two in two days. The other trend widely seen is that of oil related plays. You simply go where the momentum goes and what happens is you increase the odds tremendously in favor. It's not rocket science and we're definitely no rocket scientists but just like one must have street smarts to survive... playing into human nature, the psychology of the trader/investor takes you to where the herd is, better yet where its going to be. There is 63 dollar barrels of oil on the wall.....63 barrels of oil...literally as this is the area of resistance and we are at it. If this is wiped clean soon, a new trend most likely emerges and that is Oil clicks on. The last few days run into this resistance area was capped today by a beautiful move out of ALY. DJIM has its oil stocks and ALY has been here since day 1 to trade in this segment, today was its long awaited graduation as it popped 10% to $21. If you are new here, last night Journal entry noted DJIM stocks we like to trade when this segment gets interesting. The foreign telcos, the Oils are two trends we traded in our favor...the probabilities were in our favor to finish the days... green not red!......
A few others from today...
FSYS, a DJIM alert note in the morning just before the open, spiked early from $18.4 to 19.40 before consolidating for most of the day. Volume perked up nicely after noon. We like the chart on the daily for possibly more from this recent earning play.
RVBD continues to be the resilient tech. This was noted in the morning as it tried for highs at $34 in a not so happy market. We liked the volume action as it broke $35 late in the day, even if you flipped today that's as much as 3%. We like the chart too much to flip, instead we added as the day progressed into another NCH.
CMT, a DJIM alert pick up last week continued to paint a quiet, yet nice chart closing with another NCH
BIDU, RIMM, FTEK all these had some spark from news, rumors and are looking good. We are a bit more comfortable with the market and have increased our buying, trading the probabilities that are in our favor as we closed off November.