..A few good things about cash

One is sitting in it and the other is spending it...same goes for your trading dollar profits, you can sit in it after you worked your butt off, stressed your mind and finally earned it and/ or you can go window shopping and selectively, wisely spend some.  There's always something new come earnings season....last week it was in the JCG window, today REXI came out with a flyer on its earnings. Despite the morning beating of China stocks and tech names, REXI behaved well and we showed it in alerts mid $25's on about 15k volume.  Last night it reported .21 vs .04 on 86% increase in revenues.  The numbers over recent Q's is hard to figure but the reaction this morning showed it was a go.  The chart helped the decision process, as did the thinking Asset management co's have been in favor as seen here with GROW, IAAC.  The stock got some air and hit a intraday high in the mid $27's before closing off just under $27.  One thing we are doing now, since this is a full time gig for us ....is look for fast and liquid movers. The reason is simple...instead of being trapped in a thin stock with a oversized position, a liquid stock provides easy quick exits!.  We are still going with the cautionary flag, so this short term trading opportunity is what we will attempt to catch for now.  Two stocks provided this late in the afternoon as the market improved...DIVX, FMCN. These are not just any stocks getting the groove on, these are earnings plays fitting to DJIM, plus they fall into our trading methodology or is it madness of buying stocks as they move to NCH's.  We don't shy away from this and we wouldn't today.  Adding, buying late in the day is nothing new for us.  Even if you caught the alert note and jumped on it ......around a $1 on each was had for a flip at the close in 30 minutes.  If you held, you could have more or less tomorrow.  Whatever floats your boat!.  FMCN was actually placed on our screens in the morning but it was taken down to $65 with the rest of the China stocks. The reason we were looking at FMCN is WRH came out with a $85 buy target.  All it took was the market to go green for this to become relevant plus a kick off the 9ema.   At about the same time DIVX began to show life, more life than any other tech names as it reversed strongly.  We didn't care to know what the excitement was, we just had the 52 week high in sight and a curiosity as what it would do with it after it took out yesterdays high... Well...the 52 wk high $29.72 was history pretty soon and a NCH of $31.36 at 4pm.  At this point we are trading these, simply this means we could trade this into any morning strength or a weak market or hold longer.  We're not showing any love right now and will trade according to the action we see.

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.

No complaints with NCH's...

...the NCH's, new closing high list is long today for DJIM closely followed stocks...AXR ALY BTJ GROW JST REXI ROS ZOLL..intraday highs for POWL,FTEK

If you had to find some faults of today's action, you can say that FTEK reversed hard intraday and IPSU or POWL did not follow through the way it did the day before.    Have those three plays met our trading objective?  Hell yeah!    It's apparent that up until now, we can conclude with everyone that the key for each and every one of our plays is to find them early and get in early or wait for the next leg up.   When it comes to selling to take profits or cut losses, unfortunately everyone has their own threshold and emotional tolerance and discipline.   We like to take profit a lot and trade along the trend.  When a stock stalls or reverses, there'd be lots of sell signals and plenty of time for us to act, and such is the advantage of sitting in front of the screens all day.   Only you know when you've had your fill and its time to move on.    Ok,  here are some stocks that didn't disappoint...

ATNI, volume perked up considerably today and half of it is due to a block trade.  Nonetheless, we like its action and its strong move above 9 ema may suggest that it's ready to challenge its old high.   We got back in some.

ABM, what a surprise!...well, not really as its a blast when institutions (80% in ABM) want to play your side and buy as today.   This one was alerted yesterday due to their earning but today's action felt as if the earning came out today.   This one had strong action throughout the day and we like this one and thinking this one may no longer be a sleeper mover. Again..this is a lesson in not chasing the open, if you are not experienced enough to make a call, don't do it.  Let the market tell you when and if its worth a ride.  patience paid of nicely with IPSU, ABM

OPTM, we alerted this one earlier today and even though it did not close at the high, the late push was encouraging to see.   Say what you want, this one is also an attention grabber today.

GROW/JST/ALXA,  why do we group these three together?   Because really, those three only trade off momentum, nothing more.   Since momentum trading is what we do the best, of course we had to alert them late afternoon to all just in case they close well.   And they all closed well.

The bottom line is, if you get into some of these plays early enough and apply a proper selling strategy, a hard reversal intraday should not hurt the play that much.    Even if you did get caught and took some losses, there's really no need to get hung about it and just accept it as part of the game and move on.   There's always plenty of good action waiting for you here,  and that's also the reason why we rarely bring back our past plays (TRT) to our watchlist, unless they come back and challenge the high again or have some PR to kick it up. Too many of you fall in love with a stock and miss opportunities day after day because your money is tied up.  We can see by how many clicks the TRT chart gets compared to a flying AXR.   Move on people, TRT was here at $8 and then 12+ , AXR is up 25% since alerted here 8 trading days ago, what has TRT done the last 8?

....Crazy Genes...

..We didn't ask for much this week...or did we?.....We just wanted to keep our 2006 gains in check and give us and you a XMAS bonus without risking much at all.....1000 shares of ESCL yesterday at say $7 & and change on the break of alert, fetched you maybe 8k, 9k, 10k,11k,12..maybe 13K back in less than a day of trading.  You know we are not of the speculative lot here at DJIM,  we don't throw spec stocks out randomly or give a stock a headline like last night for no reason.   It's not our game to risk our money or get you to risk yours... Going into this week, we said what we were looking for as DJIM stocks came off their highs ...we weren't about to start buying the dips and instead wanted to concentrate on some holiday shopping with a good return policy.   We would've been happy with $10..11 as we were happy with some $9 the day before on ESCL,  but the difference is we didn't calculate its holiday trading week (even if that was the premise heading into the week) and ESCL could even do more than last time!.   Most the day was occupied with this baby...momentum is momentum...slice it any which way...volume, exuberance equals momentum and this one definitely had the crazy genes in it to replicate its May run.   Turned out not to matter if you bought yesterday at  $7's..8's or if you had started to play it today...either way...you should be ho' ho..tonight.   Traders can decipher momentum easily, starters can just as easily...it's all about volume!.  If you're a rookie, you're not at such a disadvantage...volume is volume...all can read that!.  If you want a short term trade, 20-40k ain't going to cut it like in EVST.

The bias has been SHORT TERM trading this week. If a FFHL goes from $10 to $12 after alert in 1hr of regular trading,  we are happy for those that closed 20%+, but we are not so happy to hear one DJIM reader closed on another.. but that's the game of trading, folks.   If you believe enough to buy a stock at $12 from a IPO price of $8 ......be ready to suck it up if it turns against you for a bit.  You're playing the game, so be prepared.  Still a day doesn't make a stock, up or down the day after the IPO.

Kinda happy for all those that have held onto FSYS, a good stock that just isn't discovered. Today was a little redemption...

RVBD fought back because of TW comments premarket, still the NASDAQ needs to WAKE UP before we get excited about DJIM techs again.   Hey Cramer only brought GMKT a little further than we did..no biggie, we were there first.....POWL has kissed $33+ from our 28,  OPTM hanging in with a mildl NCH as well.

Still beyond the plays and the playas'...OEH was a nice pick up this morning for DJIM.  We've been watching for a few days and bought early today off yesterdays NCH.  If we didn't think there was more potential at $45.50's, we wouldn't have mentioned it...make a long story short...1.2mln after 60k volume alert and a high of 47.82 on the day.  First million plus volume day probably in a year for OEH (200k yesterday),  not the first record volume day for a stock after a DJIM mention without news.

Charts updated include: FSYS OEH OPTM POWL REXI and ESLC for the remaining nutbars left in it;)