DJIM hold/ hit list #18

In last weeks #17, we said we're not finished yet with this market in 2006.  Last week showed our resolve to keep finding the 'trade' despite an already fulfilling year.  The market just keeps feeding us DJIM type trading opportunities and we don't want to stop feeding it.  The exodus of players beginning this week for the holidays favors our type of play going forward as the volume creeps lower. The next few weeks is 'easy money' time,  we are only looking to add to the gains of '06...not diminish them with unnecessary risk.  This is not the time to look for the 'hard money' play that could tick a few percentages off your return.  This is not the time to think...hmm..this one could be a winner down the road and take a stake in it,  this is the time to play the momentum when you see it.  What are we talking about?.  Well, we gave it out all week!.  If you look at Fridays action, if you look at the NASD chart you can see the divergence in the money flow..what you are seeing is profit taking year end.  Where do we not see this?.  Clearly by Fridays action, it was in DJIM stocks.  While the distribution goes on elsewhere, DJIM stocks are getting our cash and many other dollars that are giving these stocks momentum.. bringing in the herd.  This is what we will continue to seek out...the positive money flow and/or where it might go.  These types of plays include the possibility of runners like GROW, JST given Thursday afternoon and then the subsequent momo the next day. 

Although earnings season is practically over there are a few names coming out with EPS, maybe we will get a couple more sweet ones before the year is out.  Last week we alerted to two we liked, IPSU and ABM and with a little DJIM patience we gave a follow up alert on each minutes before the big moves. The other grand move had to be the word on POWL at $28 and then the run..okay walk to just under $34, not so bad was the pick up of OPTM at $23.   Besides JST, AXR also had a 20% week. This one was a recent alert at $98 and continues to thrill closing at 129.  Hopefully,  some finally see the promise in buying a stock at $99 and not only $9.90 after the RIMM ride from $99 to $140 and now AXR's 30% in 10 trading days. 

We will continue to be selective in our choices going forward and yes... if we get more quick 5-10%-20% at this point on individual plays, we will take the profits as so should you. For more current plays of interest ROS, ATNI etc.,  just scroll down the Journal.

Short term bets into '07..

No M&A activity is going stop the distribution, profit taking we touched on last night on the NASD.  Add on head banging resistance and you get a 42 point swing from hi to lows of the day.  Some of this showed up in DJIM stocks and a lot of it didn't. You could say a few deserved some profit taking.  AXR and GROW shot to $137+ and almost $70 respectively, both about 5+% above Friday's already somewhat extended close.  You could throw JST into the mix.  Basically the 3 biggest runners exhausted themselves as the NASD turned late morning.   Excluding the oil related issues, AXR/JST sustained the most pain.  There was little pain elsewhere among DJIM names as most finished green..barely ...but green is green!.  The great thing about that is if you scare easily, today provided you with an opportunity to sell your stock near a top while the rest of the market struggled ..

ATNI ZOLL OPTM and almost all the NYSE stocks closely followed at DJIM...DLB MBT VIP closed green.

The best of the day were ABM, which kissed $24 and finished up 2.5% with a NCH.  The other is ROS which tacked on another $1+ and a new NCH. These two definitely have some new found interest out there, we're not the only ones liking how these are trading.

Todays action started with a decline in the small caps but eventually the large caps took over.  If this round of selling continues, never forget your stock could be next.  In small cap land,  they sometimes fall like dominos. The best performers take it hard and those are most likely here at DJIM.  Luckily, this market has had the dip buyers at every turn to support any tumble. It shouldn't be any different into the end of '06 if this was to occur.  We are just leaving it to short term bets now, not too many sleep overs for us.