Trading and Killing time...

Well, this week happened to be our least busiest week in the last while.   Doesn't it sound ironic when this week had every big name co.  releasing their earning and Dow broke 12k?   To us, it's just business as usual.    We typically don't get very active during the first couple weeks of earning season as most of the reports are dominated by household names.    But of course, if you happen to run a mutual fund with billions of dollars, this is the crunch time.   For us, we just sit back and look at all this in amusement.    Then again, if you happen to be a multi billion dollar fund manager and are reading our blog, we'd say you definitely need help. lol...Although, we love seeing the million dollar Hedgies coming by;)

For us, we trade because this is the only thing we know how and love.  But in order to have an edge, we have to trade in our own games.    Small caps have been our success and it's been this way for quite sometimes.    Just because the spotlight is on the big caps and indices at this moment, it doesn't mean that small caps have been buried deep in the mud.    All it really takes is a couple of awesome small cap runner that have spectacular earning report and perhaps two to three weeks of hard work, you'd be all set for the rest of the year.    The reason why we don't touch options or other sophisticated strategy here is that we are trying to keep trading to its simplest form, demand and supply.    We think we have a very good understanding of the psychology behind trading of small caps.   There's simply no hiding of emotions when it comes to small caps.     Believe it or not, when it comes to small caps, you can experience surprise, excitement, enjoyment, greediness, top of the world feeling, fear, denial, numb, anger.. all kinds of emotional feeling  within a span of just two weeks.    We love to trade around that kind of emotional environment so we can't wait till the majority of the small caps to start reporting in the coming weeks. (TRT was just early in being late).

Meantime, in order to keep ourself busy other than watching this ridiculous CNBC stuff, here's some stocks of interest.....

DIVX, we think this one is catching its GOOG connection one way or the other.     The chart looks like it's setting up for another possible run up.   We added some and will look for direction next week to trade accordingly.

MR, could this b/o be it?   The volume suggests it's the real deal but how many times we've been faked out by it before? lol    Of course, this one is gonna get our attention in the coming week.

SYNA, this one came to our attention last night when it guided up nicely.   Trading action is suggesting higher price to come.

DGIT, this one defiinely doesn't have the lust it had when we first initially found it, but it's nonetheless worth keeping your eyes on.

ACOR ITMN ILMN, when in doubt, go medical.   These three are also high on our trading list as they are definitely more immune to the sensitive side of the economic data.

some new stocks of interest this week included APH, ALB, RBN and most of the airline stocks....

cheers,

Targeting the easy..

It's definitely easier said than done.   What we are trying to do here at DJIM is to constantly find plays that we identify as being the easy plays.   Those are the kind of plays which according to our past experience, have the best probability to go up.    Of course, it doesn't necessarily mean that our plays aren't risky.    Take ACOR for example, we noticed the morning upgrade and decided that it has a good chance of going higher if its opening isn't too outrageous.   We got that and it was a good play.    Had we held on till the close, this is back to square one and you can literally write off that upgrade effect because it was in the bag.     The point is, use the opportunity to your advantage and trade according to the trading rules, as oppose to any other sentimental rules.  **CLICK ON HIGHLIGHTED GREEN to enter Chat

[Demi] (Reply) on Extended trading- Pre/AH » Small caps quickies Travelzoo beats by $0.04 (TZOO) 32.40 :Reports Q3 (Sep) earnings of $0.28 p ...

We still feel this market needs to rest/pull back.   We feel that the sooner it's done pulling back, the better shapen we'd be in for November.   Unfortunately, regardless what anyone thinks the kind of shape our mkt is in at this moment, trading opportunities keep on popping up daily, earnings related or not.     Here's some of the playing/watching today....

RIMM,  this one was noted awhile ago on its earning day and so far it's gotten close to 20%.    This is an exception to what we normally trade but this stock always occupy that special feeling to those who were once trading it on the Toronto stock exchange back in the days.    The break out looks good today.

MR, at last!   We just have one question about this one, "what took it so long?"   In any case, even though the stock is enjoying some nice gains, we still need to trade according to the action and letting some go when action stalls.

BTJ, de ja vu?   The earning reaction looks powerful today and we really don't need to refresh readers what this thing is capable of.

Past BTJ posts    http://djmarkets.squarespace.com/dj-journal-archive/ 

BVX, pennant b/o, thick zone or whatever you want to call it.   The fact is that it closed at the high and higher than the recent high, it's an automatic buy for us again even if this not one of our favorites right now. We have said numerous times what we were looking for since the recent run up, today we got that with volume and a good close.

TRT, we bought a little of this one.  We have a feeling that this one may have seen the low.   This doesn't necessarily mean that it's going right back to old high.   It definitely needs some more work and if the inside selling stops , we may just have a chance. 

EDU, possibly the Motley effect is eroding... we bot little to keep an eye on further development. APH as well off the 9ema. AZZ looking pretty good on the chart.

Off our market chat, a few nice stocks put up by fellow traders..

SILC, this stock is also worth keeping an eye on.   Earning may not be awesome but action suggests it can go higher. MTOX, this is one of those stocks that we aren't initially sure that it can attract momentum or not.  Today it proved that it can and we are in some . ILMN, this is a possible b/o that may get some follow through the next few days.

Yesterday we talked about a power move to/at 114 for RIMM. 

That's a pogo stick you want to jump on when you see the volume kick in.

Charts updated for wednesday at BT Charts

ACOR-APH-AZZ-BVX-CETV-CPY-DIVX-LCC-RIMM-TRT and BTJ