Tomorrow, Tomorrow...RIMM for DJIM?

RIMM for DJIM?. If this stock closed at 8.60 and you had a chance to buy it at 9.99 AH..would you based on the % jump in guidance?. ..we would and we did..sort of....the only difference is paying about $100 a share in a starter position..now we wait for the premarket analysts comments for further action. Using our benchmark of getting a 25% move, we can't say $125 is out RIMM's future...besides we need some Canadian content and paying '99' as hockey season approaches seems quite fitting for us. Of course not a small cap, RIMM still falls in the 'earnings story' and 'momentum' categories we follow. Most importantly since we have a few techs... we hope RIMM brings a nice tech rally to end the Q tomorrow...Not that DJIM's needed any help as witnessed by todays action, but a hand from the overall market would be nice for a change.

Co issues upside guidance for Q3, sees EPS of $0.88-0.95 vs. $0.77 consensus; sees Q3 revs of $780-820 mln vs. $700.23 mln consensus.

Update on Friday, September 29, 2006 at 07:46AM by Demi/ YourPersonalTrader

Like the way they are thinking this am-  Research In Motion tgt raised to $140 from $100 at RBC ,  ThinkEquity upgrades Research In Motion (RIMM 86.06) to Accumulate from Sell and raises their tgt to $115 $45 following earnings.

Rational Behaviour..

We wish there's an easier way to explain market's action today.   Of course, if your account is under performing(in a relative sense) compare to the index, you are probably among the 99% of all traders out there.     What's really surprising us is not the reason why the index is up, but how it's been holding up in such a resilient way recently.      Here's a question, how would any of our stocks perform if the Dow is only up 50 pts and Naz up maybe just a few pts?   Our guess is that most of DJIM stocks would still end up closing where they did today.     Ok on to some stocks...

TRT, after 1 1/2 day of pullback, this one finally seemed to find its footing on its own.    Put it this way, one good rush can take out its old high.   This is a very low float stock and naturally the volatility comes in the same package whether you like it or not.   Give room to allow it to tilt either way but as long as the overall trend is up, you just have to act according to the overall theme.

RIMM, after a couple of days of consolidation, this one is finally moving on very healthy volume.    This one is more tied to the index than most of our small cap plays so it's prudent to track COMP while trading this one.

SYX, this one got a new closing high and is looking healthy.

possible setup for tomorrow  NGA IAAC ANGN CVLT

Nice Action....TRT,SYX,IAAC,ACOR and more

Ok, so the action today is more than just nice.   What it feels like is that market finally gave us what it owed us for a couple of days, action in the small cap land.    Still, indices finished up very nicely considering where we are at this point.    We can definitely conclude that market is riding on a high note going into the earning season which starts next week officially.    Now the DJIM stocks...

TRT, this one had a much better follow through than we expected.   Not only it took out $11.50, but it closes near the $12 mark.    We don't know if it's going to take out the high any time soon but we do know that $10 feels like a distant memory.    Now that people have seen how far it can pullback, it is only logical to think that they'd be lined up to buy on any pullback now.    Of course, we'd be in there doing the same thing.    Idealy, we'd like to see TRT trade in the range(consolidate) for a little longer before pushing for the next level of higher prices.   Looking good!

SYX, slow and steady!   In terms of percentage, this stock moves nothing like those little biotechs.   In terms of following the trend, this one is beating the little runners hands down.    Alot of the action is definitely due to the strong indices and maybe some IBD rated buying.   As long as the market is in a rosy mode, there's no reason not to own this one.

IAAC, it broke out today, on very good volume.   Although it didn't close near the high, but it closed good enough to generate some more potential follow through in our opinion.

NGA, also broke out and it looks like it should be able to sustain its move for a little longer.

ACOR, save the best for last perhaps? lol   This one definitely has the best momentum out of all of the stocks out there, whether you are comfortable with it or not.    As noted in MC yesterday we hardly thought ACOR was done because of the private placement and today we acted on it as it was about to attempt the days high (also an area where it churned yesterday, see chart below). It turned out to be a good move, and actually it turned out to be a great move.    We are not here to debate the legitimacy of the co. or its potential outcome of its drug so we are merely sticking to the trading action.    DVAX also got a boost today b/c of positive study results and this thing may also get some carried over momentum.   However, we still think that ACOR is by far the sexier of the two  in terms of story and float.

RIMM- traded nicely after yesterdays big day closing near the highs of the day $110. A nice chart like many others here into fridays action.

..JUST CLICK THE HIGHLIGHTED GREEN TO ENTER MARKET CHAT...CHARTS UPDATED FOR FRIDAYS TRADING DAY.

10/05

DJ DAILY DISCUSSION LOG in Market Chat

'Demi' replies » We have taken another position in ACOR here in the low 11.20's

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 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.

..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 !