CSCO...DISCO

Boy...this old song and dance is a bore. Have we not seen this before?.   Well, it wasn't too long ago, August 9th..the day after CSCO's shiny earnings that the Nasdaq did a 37 point dive off the top to the close.  Let's go through the two step today...early morning in MC we said.."P.S..a good time this morning to take some profits in your gaps".  Sometimes you are given a gift, unwrap it and leave.  We can't stress it enough here, take..lock in your points, profits. The Nasdaq proceeded to give up 30 points from highs to lows of the day.  It was just last night and many times before these names were profiled and /or talked about as trade bait on DJIM...from yesterdays close to their highs today, MR up 9.4%, RVBD 6%, DIVX 5.5%, BTJ 5%, SNCR 9.5%, SRVY 8.3%, EDU up 3%, RIMM 3%...10% since note in MC on the perfect conditions for a kick from 118's. Throw GDP 5% and even TRT from $12.70' alert time was a 10% ride to the close and yesterdays list glows.  If you're not taking profits of these type of gains, DJIM is not your bar!  

As per MC, we were ready to rotate more new found cash into more BTJ, GDP etc. This turned out to be no more than a intraday sector trade...they perked up quickly and just as fast gave it up. We did the same as the tide turned for the day, but the day was far from over as TRT, GMKT, GLDN (MC) were added along the way. The G's are earnings releases within the past 48hrs with charts that were looking for new highs while the market was selling off.

A few notes...

GROW- as per market chat comments,  we waited out the CC after a morning trade. This was too funny!. Is this a Asset management company or a PR firm?. We're sorry but taking 7+mln OS and turning it into 15mln shares via split is not going to lessen the "trading volatility" in GROW.  This is not the usual reasoning for a split and we can't believe GROW's team believes cheaper shares won't bring on those that like cheaper shares to trade. This stock has a reputation we've seen grow since the beginning, its not going away with a split. They are traders themselves, you know.  The fact they stated they have been on IBD #1 for 8 of 9 weeks is over the top. These guys should be promoters not Asset managers. The ironic kicker is they might need the extra shares to pull off the closing stunt today another day.  GROW was about to finish below the breakout point under $35, but then the painters came in and with a stroke of the brush made it a mid $35 close. The ugly candlestick was spared, but the smell of it all you can't hide with a paper bag.  We believe nothing will change with GROW the stock, it will remain a volatile trading stock and nothing more. Care should be taken with any position going forward, just like its always been recently.

TRT...what TRT gives out mid-quarter reports?;). Didn't we just introduce this at $8.50. Well...management gave a pleasant surprise with the unexpected early earnings release. We applaud this management, no doubt this was to stick a fork into the inside sellers side. You see there is a difference between the companies people selling and a Hedge fund aka Zeff doing the deed with a large stake in the co'.  We feel they were a little ticked off and today's early surprise was the pay back. This stock was almost ruined, now this DJIM stock has life again. We look forward to IBD refreshing the rating.

Update on Thursday, November 9, 2006 at 09:55PM by Demi/ YourPersonalTrader

AAON-APH-ATNI-BTJ-GROW-MEK-MR-SNCR-TWLL-RIMM-RVBD-UCTT(wkly)....this should be enough as BT is starting to see cowboys and stallions in his work;)
NDX WITH TARGET....updated at BT charts (navigation column)

DJIM hold/hit list #13

Back in October, we stated that November is seasonally a strong quarter for small caps.     Near the end of October, we stated that we just could not wait till the small cap earning season to start.    Well, we aren't disappointed, so far.       Maybe  it seems that all we had to do is to come back from a 8 month vacation and trade from November till February.    Now that would just be too easy plus we could have missed all the DJIM action from late August..just go to the Journal Archive.  The truth is, without the hard grind of the summer, without going through the emotional roller coaster with the market from the first trading day of the year, none of us would stay as focused, or sharp when the time mattered the most.     Well, here we are now.   We have had literally a stream of awesome small cap action last few days and we are trying our best to make the most out of it.    It means all out for us.    Folks, if you hadn't committed much time, energy, capital or effort into the market last few days, we'd say you are gonna be sorry a few months down the road.     Here are some plays we really like that showed up last little while...

ATNI, this is definitely not a flashy stock like some of the other heavy hitters.    It has very good earnings and it moves in stealth mode.   Before you know it, this thing can move 20% without making any kind of headline.    It broke out on Friday and we are keeping a close eye on this one. We added back. Friday looked like the day it would break all those candle wicks on the daily. http://djmarkets.squarespace.com/journal/2006/11/1/atni-atlantic-tele-network.html

GMKT, this stock had a very powerful move on its earning day and it smelled lots of institutions stepping in to bid it up.    A very sexy business and a dominant player in its area and with the holiday coming up, we think this one is gonna be in play for a while.

DLB, wow what a report this one had.   Ok, this isn't exactly a small cap but man you gotta give those guys a thumb up on their execution.   It took out multi year high, literally in one day of trading.    Now it may not give you another 33% gain day anymore but we bet it caught lots of people's attention on Friday.

Reports Q4 (Sep) earnings of $0.22 per share, $0.11 better than the Reuters Estimates consensus of $0.11; revenues rose 29.4% year/year to $102.1 mln vs the $83.8 mln consensus. Co issues upside guidance for FY07, sees EPS of $0.83-0.92 vs. $0.75 consensus; sees FY07 revs of $420-450 mln vs. $405.67 mln consensus.

MEK, it made it to IBD #5.   How will trade from now on?   We think it could trade with the group but with a better beta action.   Other plays we also consider in the same genre include BTJ ALY FTK. 

TRT, ah ha!    This one is not an unfamiliar name, far from it.     The latest quarter simply confirms the status of the stock, it's not going to be a micro cap anymore.   Bring it on Zeff boy!.  Nothing new to say, just scroll down our pages or go to the archives to get your TRT fill.

EDU, didn't we say this one could make some easy money?  Lol  Ok, nothing is easy in this business.   What this stock did the last few days, is simply giving back to all the believers and followers of DJIM site. Same as TRT, you can find your fill of EDU write ups as it seemingly has been with us since day one.....3 rides now!..Recycle, recycle we say. If EDU doesn't cut it one day....MR has picked up the slack and vice versa.  Late this week MR hit a new high 20.57. DJIM's Super Ninja's are sure to provide more excitement.

FSYS, this play is new and we think it can get some legs out of its report. We put an eye out on it early Friday morning in MC, its action perked up and we entered.Reported Q3 EPS of $0.22 vs -$0.63 in 3Q05; (est.$0.13c), revs rose 13% YoY to $55.4 mln vs.44.1 mln est. Co' raised 2006 rev guidance to at least $210 mln, up from previous guidance of $200 mln.  This alternate fuel segment needs some new trading blood, maybe Fuel Systems Solutions will be it.

AAON, we introduced this earning gem Wednesday morning. Not only did it take out the $25 we spoke of, it took on $26 Friday. Definitely, a A-Team member!

GLDN, we also introduced back some Russian blood with this Telecom/Internet provider. Volume has really picked over October and into early November with its earning release. 35% revenue growth, 40% net income YOY, 16% revenue, 7% net sequential growth.

RIMM, yep...we raised the RIMM flag as it became the 11th 25+% move in 12 weeks of DJIM. The action Thursday left it with a little toppy action. Every other day they seem to have a need to strike a blow into RIMM, Friday it was MOT's deal with Good Tech. This has been going on endlessly and RIMM just keeps making new highs. Nothing is wrong with RIMM for those wanting to play it out further, but we feel there are better chances of a finding another 25% move elsewhere...faster. We'll still keep a close eye on it as it's in the Constitution of Canada to do so;)

EFUT, is one we are trading as the Yahoo's are all over it. Definitely not for those that plan to have many bathroom breaks during the day.

It was just on Halloween that we took a cautious stance as many of the DJIM stocks felt toppy, by the close of Friday November 3rd we started to use up the cash with 6 or 7 buys. The names are changing, growing fast and furious during the past week. Buy the strength and don't sit on the UCTT's that are clearly lagging the uptrend.  Honestly, what are you waiting for?  You also have plenty of oil/energy names to rotate in and out of depending on the oil picture. If you have your DJIM list close by and have created a watchlist/buy list of these stocks, last week was a very fruitful one.  For more DJIM names read the commentary of the past week plus glance over the charts for ideas to trade.

Jon/ Demi

DJIM recap..

So far the blueprint for this holiday week is quite the Green when it comes to DJIM small caps. We spoke of EFUT possibly being good material for holiday trading and it hasn't disappointed as far as excitement goes and huge gains since Mondays open.  Does it have more in store?. Who knows!. The real fighters off DJIM have to be GROW and JST, up 8% and 7% plus respectively today with NCH's. If you were patient, you probably got yourself a decent entry on JST without chasing its lights out on the open yesterday. Not far behind has to be the GLDN in DJIM alerts today mid 39's when volume was a quiet 30K. This Golden baby didn't only perk up, it foamed up to $41 and a clean breakout on 308K volume.  Again..the point of alerts is to show a stock of interest to us,  it isn't a license to buy because we mentioned it.  So everyone is into the momo this week, that's okay DJIM crawlers go the back door and put up another 5% as in the case of ATNI, $27.58. Ain't that chart a beaut for this DJIM stock from $21 this month. Paste this one on the wall of 25+% moves on the DJ Journal Archives wall....right next to MR which made a nice move to close at $22 today.  

A note on TRT, we pointed out the possibilities on the weekend. One was a volume break over the high, this didn't happened. The other possibility happened but it wasn't the slow and easy walk to 9ema, we would consider for a play. We noted a few things last night we didn't like about the stock and its surroundings, todays action really didn't come as a surprise.  Now is not the time to chase 9ema bounces, there is plenty of other plays forming.   Hard to tell now how TRT will react.    

Be smart, the market is only going to get thinner as we head into Wednesday trading.  If your stock exceeds expectations it might only be an illusion and not your trading prowess, same goes don't freak and SOS DJIM if the stock of choice does not meet your expectations...the spreads, the volume allow for a lot of trickery as we finish off the week.....

CMT mentioned around these parts since earnings,  put in a nice candle for the day. Let's see what this close brings tomorrow, if it holds early this type of thinster making a NCH has the makings of something that could bring traders in.

Chinese stocks... the likes of BIDU, GRFF, HMIN are definitely across a few trading desks this week providing a volatile trade.

From Russia with Love...

We started the day with a very optimistic tone and we definitely finished it with the exact same tone.    So basically, the cautionary stance we took a couple of days ago is a little bit lessened.    However, just because the index is finishing solidly green, it doesn't mean that we are going back gun ho and buy back all of the DJIM stocks back off our watch list.      Still,  it's a game where you only get rewarded from the best action going forward, not from the past.    Momentum stocks provided us with some solid gains yesterday such as FMCN DIVX late day runs, today we had some other DJIM stocks such as ATNI IAAC SNCR MR EDU... providing sparks.    On top of everything,  every one of the Russia based telco stocks caught fire today, notably MBT GLDN VIP ROS.    These were the primary trading targets but if you were recycling DJIM names, you too had a good day!

DJ Traders Market hours Alerts in DJIM Alerts

'[Demi]' posts » MBT, russian telecom out with excellent earnings, also possible overflow to others such as VIP-GLDN, which was raised to buy and a 50 tgt from 37 by an overseas bank yesterday.

To cap the day, we definitely had a couple of wild small caps and the one we chose to play is RNIN.   RNIN is getting some buzz b/c of its close similarity to FMCN and the fact it's an IPO, it gets played with some serious momentum.     It's not easy to keep the gains for a 5 buck stock, even though the float is small.   It definitely had its share of volatility today, but the end result is a close near the high of the day with volume surging toward the last half hour of the day.     While this normally signals another good day to come, it's never guaranteed that it can happen and this play is definitely on the more speculative side.    And last, oil service group had a very decent day.  Recent DJIM stocks such as ALY BTJ GDP PVA... all seem to have broken out.    We'd say choose your play wisely and pay very close attention to the overall sentiment in the group.    One little hiccup in the sector and we are simply outta there.     

That -54 Naz day is still lingering around our memory.   It can not be easily forgotten and the way we've been trading last couple of days fully reflect that.     We have been playing with smaller sizes and only playing with those we think that exhibit the best momentum, today it was the idea of a wild fire spreading from MBT earning. It was a hunch in DJIM Alerts premarket and paid off handsomely with NCH's big dig days from the Russian stocks.

cheers,   

A long DJIM trading day!......VNDA>>DLB

We prefer to remind ourselves tonight why we DON'T play the biotech/pharma game instead of taking out the poms-poms for DJIM.  Of course the gains can be tremendous as we saw by the first alert trades in VNDA..$21 to $22, that's about 35-40% from yesterdays close.  But... what if we play this game of Russian roulette and we wake to a drop of the same size because of poor results and then we go lower and lower before the bell.  One thing we recognized recently and mentioned last week is VNDA has the capabilities of getting MOMO as seen in November.  We didn't expect a release, just a breakout from this tight range as the stock was acting funky lately, yesterdays close showed some hidden promise...This (momo) was clear and center in our minds as the stock gapped to $21, 35-40% was nothing for this stock, we knew it was capable of doing much more and the first thing we did was probably add 10X the size we already held.  The gains off those morning trades made the pick ups at $15+ a backdrop as the stock traded $28+ and another 35% off the first trades this premarket.  The point is simple, we have never seen the risk in playing these worthwhile and tying up cash...waiting and waiting for some trial news.  At the end it comes down to what you do after the 'news', not before!. We doubt this will turn into anything close to the ACOR we played here, but there will probably be a leg here or there to jump on as this stock gets discovered.  Right now, it might become more of a Pharma acquisition play. Many big Pharma are losing sleep and going a little schizo these days, VNDA could be their cure.

While the DJIM China stocks rest, their comrades the Russian telcos seem to be acting just fine. MBT, VIP, ROS and led by GLDN showed strength in a lacklustre market. GLDN, the volatile of the bunch continued yesterdays bolt to new highs, volume has been excellent the last two days. ROS is the crawler in the family, we alerted under $38 and today finished 39.69. Nice chart if you have a second to spare.  MBT and VIP seem like they don't want to consolidate for too long and instead make a run for the recent highs. As market deteriorated after 2pm, these seemed to hold and even pick it up throughout the day. We'll see tomorrow.

So our DJIM day started at 7:30am with VNDA and was still ticking at 6:00pm with a Cramer tick on DLB with a $30+..Guess the man got the alerts this week;). We would have preferred to let this play out on DJIM time but we won't be afraid to take some early profits if its called for tomorrow.  Stay on your toes tomorrow for the market, don't give up what you've earned.

POWL....bam...boom

..did you think we were going to get the CRASH...SPLAT too?.  Come on, you did!...Well, if you didn't, we did with the NASD down 20 and the FOMC a few hours away.  Our belief has been the closer we get to the holidays, the farther we are from a correction.  We just don't see Bernanke and his Posse stealing this Christmas after giving us such a ride.  It just wouldn't be fair, would it?.   The problem early was NUE and the NUEsami it could cause that rattled the market...the ripple effect, the wave hitting other steels..metals..titaniums...oh no maybe all the way to China and our dear DJIM China stocks!.  Oh yeah BBY didn't help the cause.  The 2:15 FOMC was almost a pause, nothing too actionable as expected yet it gave the market the little bump it cried for. The NASD spread was 25pts from open to lows, finishing down 11 was just fine.

We liked IPSU's numbers and expect a few follow ups from the analysts they surprised. We were looking for a breakout from days tight range after the FOMC showed all was okay for todays market, but never got it.  Sometimes, stocks need a little time to give it another leg up...recently we wrote on DJIM about POWL and wanting to give it a few days to settle...well, today we alerted to that note and the rest is history from $28 to a $30 close. Sometimes it takes a good stock a few hours to move again, sometimes a few days to be discovered again...sometimes a few weeks.. REXI which hasn't done much since our 1st day run off earnings, maybe will turn now.

If you've been kicking back with some DJIM Russian telcos, you enjoyed the volatile GLDN hitting a NCH with another move. The chart, the volume are all there. If you're in the crawler, ROS..you got a new high $40's as it announced a fast fiber deal with KDDI from Japan-Russia.

Really nothing too exciting today, mostly a bunch of stocks, including DJIM's hitting off new highs early on. This could be a short term top that just provided a higher exit or it could just be a small turn before catching more momentum. The market will let us know soon enough.... EDU smacked 37.96, DLB 31+, MR 27.20, ZOLL 56+  Is this it?. We don't think so and will keep to recycling the best DJIM names and sandwich new plays around the core.  A stock in a uptrend, including the previous days action coming to a new high... might continue a downtrend if it breaks that previous days lows...something to watch and help make exit decisions.

A little bit of everything...

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.  

..Spinning

..and getting nowhere!...Selling remains the order of the day on the indices as we close off the week.  Despite the Nasdaq now closing on a weeks low, DJIM closely followed are holding up quite well.  Unfortunately, any further breaks are stopped in their tracks by the bigger picture. If we do get a late bump up, these might be the first place to look for an extension of their highs.

OPTM is one the best acting out there and finished with another NCH after testing $27. Not a bad run from the recent alert buy at $23. We 're still adding along the day.

GLDN has been doing some xmas shopping this week and looks poised to move on. A little volume and we could see new highs again. It's slower cousin, ROS made another NCH and big bidder is still lurking around slowly walking it up.

ZOLL made another NCH and continues to slowly creep higher. It to just needs volume , but thats a hard thing to find in holiday trading.

FSYS picked up on yesterday late day spurt with more volume today. Maybe this base it broke out of yesterday is similar to the one it broke out of in early November. This one has a way of disappointing, so we're cautious here.

OEH flat lined on nice volume after its big day,  FFHL is turning over the inventory, you're in it to trade it.  Having WBHambrecht at the IPO helm should provide a trade here. They of the pump FNET circuit can get this in play.

RIMM, want to see the analysts price targets go up tomorrow..lol....before buying this back at the high 140's.

One last good day is not too much to ask for tomorrow, is it?.   You can't live on the ESCL daily.. that sort of trading stuff wipes, drains you out !

DJIM hold/ hit List #19

In most cases, stocks have continued retreating during the second last week of the year.   This is understandable given the kind of market we've been through.   For many people who are making their year end tax moves, the last couple weeks of the year is the time to get it done.   Both of the profit and losses needed to be realized and both will have to come in a way of selling.    So, a pullback in the indices may be the indication that people are just doing that.     We at DJIM here are doing just exactly that, taking a breath from this market and resting ourselves up for what could be a busy earning season.    Yup, earning season is almost upon us again and the coming quarter is considered to be typically the second strongest quarter of the year.

One thing we feel that we have to point out to our readers is that we DO NOT hold through earnings with our DJIM stocks.   Most of our plays are considered IBD type of earning momentum plays and the one very thing that can break them is THE earning.   During the past week, we've seen it with IAAC and MIKR.    So what happened if you get caught holding through, whether intentionally or accidentally, we think the best thing to do is to just move on.     There are just gonna be tons of new plays on the horizon and there's absolutely no reason to hold onto a broken pipe.     How about playing for a bounce, or 50 ema bounce, as some of you may ask?    We think it's better to leave the leftovers to those who actually enjoy them.   For us, playing with the best setups, and playing with the current plays are the only things that matter and from which we get the biggest rewards on.   As you can see, we have no problem coming up with new and exciting plays every week and even every day in a good market.      Our mentality and our approach to this market has always been that we let the plays "come to us" and the nature of this market is such that there'll always be new plays coming to us.    We just have to be there to catch them, early.     So digging up old beat-up plays, leftover plays, and other "left for dead" kind of plays, are not worth our time, effort and capital.     This is the very reason that got us to this point and why this site exists.

In the past week, we had some wild action from ESCL and some steady action from OPTM, FSYS, ZOLL, GLDN, POWL, ROS....   Even though some of those gains did not hold till the end of the week,  it's just down right silly not to take advantage of some of the intraday gains.   Think about where you have started trading them and where they had been during the week and how long it took for those gains to realize.     To cap the week off, we had a super strong close off a Chinese IPO FFHL and our second timely alert on it.   Most of us are probably excited to be back tomorrow just to trade FFHL.     In any case, FFHL may be the focal point for many traders for this shortened trading week.