A little bit of everything...
Wednesday, December 13, 2006 at 10:05PM Of course, if you simply stare at the index and listen to CNBC today, you'd find it no more than a torturing experience. The market seems to be stuck, as suggested by the index action and as well as the commentators would have you believe. But if you look closely, especially the list off the DJIM stocks, you'd find plenty of action here and there.
The key here for us, is to play those that are attacking the new 52 week high off the DJIM watch list. When a stock fails to advance or stalls at 52 week high, we reduce and lock in profit. Having a list of strong stocks and constantly updating by adding new plays and deleting old ones ensure that you are always playing with the best stocks with potentially the best setup. Here are some highlights..
Russian stocks, GLDN and ROS continued their march upwards and left their stalled comrades MBT VIP behind. Eventually these cracked the 9ema recently. We are focusing more on the first two while keeping an eye on the rest.
Sugarcone, IPSU had a very nice follow through and in fact it was not late buying earlier today.
Surround sound, Cramer surely discovered DLB at $30 and it's a definite bonus which is already 20% gainer for us. Briefingcom has been all over it as well.
We also like the follow through on POWL and a nice setup on FTEK. Two of DJIM's fav. oil co. BTJ/ALY have made new closing highs as well. This market has become much more selective and it's understandable that many traders simply just want to take it easy for the rest of the year given the long stretch of rally we've had. The best course of action for us is to let market show us what's working and we'll go from there.