DGIT and others...

DGIT($10.25), Co. raised the guidance for the next quarter.   They are estimating for 18.6 to 19 mill, which is about 2 mill more than the last quarter.   The stock is breaking out on this news and we are looking for follow through.

SYX, yesterday proved to be a good time to buy.   Will it make it to IBD this weekend?  keep your fingers crossed.

ACOR, what goes up must........... consolidate.   We locked in some nice profit by reducing some exposure to this hot potatoe.   Will it continue?   It might and when it breaks new high, we'd be there.

IAAC/FNET, both playable for follow through if they get a good close.

also keep an eye on MR, an IPO today which is based in China and sells medical device.   It looks pretty sexy.

DJIM updated holds/ hit listd

Those following DJIM must've noticed we entered the week without passing on a hitlist for the week. Last week we dropped up to 7 off our list as they pullbacked from DJIM high runs...the AMIE, GROW's etc. Instead of waiting for these to bounce we decided to go shopping this week for some fresh meat if the market allowed for such. We already had the steak in TRT from Friday and a bounce possibility we were waiting for in SYX plus a few well behaved carrots in CPY, CETV, TWLL, SNCR still on the plate. If we fall in love with the stocks that gave us amazing runs like EDU from 22, AMIE 29...we would be nowhere holding them right now waiting for a bounce.. Instead a clear head and free cash has allowed us to replenish our DJIM hitlist quickly and even enjoy a wild ride on ACOR. So far this week we have positioned back in SYX....as noted in MarketChat IAAC was becoming a possibility again as it came to $22 today. Once it was evident IAAC was clean over its 9ema we recycled in and watched it close strong ($23.60). The 27MM PPlacement seems to be behind it at least for today. A steady dip on light volume made us step up and get some more TRT in the mid 9's today. On the day our recent IPO runner from $22 EDU retraced all of it's DJIM gains, we found ourselves in MR($16.40) a medical device co from China IPO'ng today that closed very strong...if EDU bounces here we could have it back in DJIM books shortly. Keep an eye on it, you've seen it run once. Also added was DGIT($10.25), the guidance was nice but the chart is just as nice.

DJIM recap ..IAAC, EDU, TRT, SNCR

... recap of some trading opportunities today from DJIM list.

What we have here at DJIM is 3 sets of eyes interested in the same type of stock, helping each other and passing it on. Our strategies, techniques might be different in some respects but the goal is all the same.

IAAC was alerted to yesterday in MC as it came to its 9ema just underneath $22 with some force. The remark "BT get the charts out" is that after one sees the possible move coming another like BT can put up charts and give clear signs of where (R)esistance might come into play. Knowing where the R is essential when a stock takes off so you can act accordingly and hold onto your gains. In IAAC's case a couple of points. Last night BT pointed out $24 would have to be taken out with force. The force was not there and we had the perfect place to exit and look for another possible entry as BT was.

EDU- last night we talked of a possible bounce at $22, the original trade entry on EDU. Seems like it couldn't wait to bounce and gapped this morning. We did enter but like IAAC feel this is a chart trade for the moment. The EDU chart has the 50ma to consider, like IAAC you might want to exit if you do not see the force in taking this out. No fun hitting your head against a wall for too long. 

TRT- adding yesterday was quite fruitful as is every opportunity where the weak hands decide to lose their shares of TRT at this point. Even today was a gift to some as it fell intraday. Like EDU, if you follow the DJIM you had yourself a nice 6-7% day. TRT opened under $10 and ripped to $11 in the morning.

SNCR- mentioned this one in MC today at 70K in volume. The edgy SNCR was in full bloom as someone came in to play with the bid later in the day but had no sellers. The volume which averaged 30K the past 3 days doubled after our mention to 150K. The day after we profiled SNCR this action caused a fast rise to over $11 on these shenanigans as the ask was chased by a 50K lot. Added some today to see what the fuss is about..maybe tomorrow we'll know. A opp for a quick trade seems to exist if thats your game, a possible longer term trade if the software game stays warm.Notice the quick move intraday and volume end of day.

End of Q dressing inc.index moves..SNCR,TWLL

The Russell 2000/3000 will most likely be adding a few DJIM IPO names shortly( tomorrow)...SNCR, TWLL and even the hurricane/homebuilding play PGTI.

Market Update

When technology IPOs like RVBD DIVX get bid up the way they have been last few days, we just knew that this market is in a very good mood.   whether this mkt is healthy or not is up for debate and fortunately for DJIM traders, it's the least concern for us.    What we are seeing is definitely more and more tradable small cap opportunities.   It does feel like this is one of those time of the year where all our time, capital, effort and focus need to be put where it matters.

TRT,  there's really no need to add to what we've already said.   This is in our opinion the best small cap stock we have seen in a while.

SYX, this one is a tough call.   We hope that those who bought it during the pullback have taken some off the table because there's always a possibility of repeat of last Friday's action.

IAAC, take two!

MR, we are keeping a close watch on this one as it's still currently working off the IPO inventory.   We like this story and think this is right up there in terms of sexiness.

EDU, check out BT's chart on possible course of action.  

DGIT, it just feels like it's just a matter of time before it moves, hopefully higher.

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.

DJIM wk#7 holds/ hit list

Not many changes heading into the first trading week in October. DJIM reshuffled the list early in the week. http://djmarkets.squarespace.com/journal/2006/9/26/djim-updated-holds-hit-list.html

Last week was highlighted by the TRT run, the re-entry on SYX for a 2nd run for the roses which ended with IBD#2. Both of these have been highlighted here in detail for the past few weeks and a little or a lot of locking in profits is always a good idea. The week also saw the recycling program in full bloom as we unlocked a few nice trades highlighted in MC/Journal... IAAC(twice), EDU off $22 and a quick SNCR bounce off the 9ema and the biggest in ACOR. We added MR an IPO, DGIT which raised guidance as well as giving RIMM a whirl on their big guidance hit.  On friday, 16 of the 19 IPO's that were added to the Russell 2000 friday night got taken down an avg of over 3% to fill, each taking a reshuffle trade of $100-700K at the close, at or near the days low. SNCR and TWLL were victims of this and are on the DJIM ropes. The action friday was definitely skewed for all the IPO's but unless these two reverse quickly their time with us might be over after a few nice trips.  CPY, CETV acting fine, watch the charts.  All charts refreshed for Mondays trading.

Keeping Focused...

Some mkt gurus are blaming the rise in indices recently is purely due to the large caps where small caps are largely lagging.   We at DJIM would like to dispute that theory whole heartedly.   Other than RIMM, pretty much all of our plays have been gathered around small caps.   There were plenty of opportunities here and there and we recall no less than 5 good plays at given time.   That's really enough to take advantage of and make your portfolio stand out.    Of course, we also admit that lots of focus, time, and energy are required in order to make the best out of them.   Then again, you just can't get good at anything without dedication and hard work.     Ok onto the plays....

TRT,  very very resilient.   This actually reminds us of this mkt.    It just won't go down.   Ok, we are not wishing for it to go down but even the best stock needs a pullback sometimes.    All we know at this point is that if it pulls back, we'd be adding it very aggressively.     What if it continues up without pausing?  Then in that case, this will be considered an extraordinary stock.   We definitely have very high hopes for this one as the earning season draws near.

SYX, ok so it made it to IBD#2.    We are reducing some exposure today as we think the near term catalyst may be over.   This thing may still have legs up but it can only be attributed from overall mkt action and its own chart action.   I'm sure BT will be on top of it.

MR,  can it break $17 and hold it?   So far the first part came true but we'll have to see about the second part of the equation.   We will likely add some on its way up if action does not disappoint.

Also so far EDU DGIT IAAC in our opinion are still holding their end of the bargain and ready for a potential move upward.    Over the next few weeks if not months, DJIM will be very busy as historically it's always been the time for our small caps to shine.    We just have to really focus up and gun down some big winners.

cheers,

Update on Monday, October 2, 2006 at 09:42PM by Demi/ YourPersonalTrader

SYX- MRVL" ....The co believes the shortfall of demand is primarily due to a combination of weaker than normal seasonal shipments in the personal computer market ....."

EML

EML was developing a latch for Humvees in '05, last week was the pay off as they received a first order and then a second from Armor Holdings (AH) to retrofit humvees. The 2 contracts worth "31 mln" will be split between the next 2 Q's (sales to hit between SEPT-MAR).. Eastern makes about 100mln in Revenue a year....hmmm nice bump coming as soon as next report.  The stock is extremely thin but moved nicely late last week due to a 3/2 split announced. The real news is the contracts that were not released in a official PR but sit quietly in the sec. filings. The chart is nice, the split works and the potential for thousands of more HV's to be retro-fitted and therefore revenues climbing. Added to DJIM holds....wanted to intro this on a dip but now not sure that will come soon enough. This falls into our crawler category we've had some luck with..AMIE,CPY

this on AH today from PRUD...Firm says the FY07 bridge Supplemental included funding totaling $1.6 bln for Up-Armored Humvees and $794 mln for medium trucks. Firm believes some of this amount would have been included in the baseline FY07 Supplemental. Firm says the fact that U.S. troop levels should be sustained at current levels through the spring of 07 could entail additional Humvee and FMTV funding in the next Supplemental. Firm says AH provides the FMTV trucks and is one of two suppliers of armor kits for the M1151/1152 Humvee. Firm says the change in their est is due to higher assumed deliveries of armor for the Humvee as well as FMTV trucks

AZZ

AZZ (36.90)If you are as unfamiliar with the galvanizing technology as we are, it is ok! lol   The story behind this one is its latest earning.   We have actually traded this one occasionally on and off for a long time.   The reaction(volume wise) to the latest earning is the best we've seen during the last few quarters.    The reason we didn't post this one on the day of the pop is b/c we aren't sure if it is going to hold(filling the gap possibility).   We've given it a couple of days of observation and think it's definitely a good idea to establish a position now.     The stock is relatively cheap given its growth and valuation.   The float is also very small and the stock trades rather thinly.      Also we have to mention that a secondary play is NGA, but that one has long felt like damaged goods.

TRT, well it's pulling back and we are adding some.   It bounced off 9 ema like all the other good stocks do.

DGIT, as Demi pointed out, it got a mention from briefing.com   This may actually get some interest next few days.

ACOR, there's a possible bounce action developing but this one is very volatile.

Nine lives for DJIM recent winners...TRT,SYX,ACOR

There is just something about DJIM type strong stocks and the 9ema on the initial ramp up. This is partly why we say take some off after nice gains, a second chance should and will most likely come. You could see by the wicks on the TRT chart 12.50 was a head banging experience going nowhere yet. We spoke of a PBack and a quick one occurred today with the 9ema serving as support and renewed buying....'Recycle', the selling was not on strong volume......Same is true for SYX, we told you about the first opp at the 9 that took it to recent highs...today you got another reversal off the 9.   ACOR to the 9ema area and then turning big time late in the day. Jon mentioned it just past 2pm as a 'developing bounce' at $9.50...I think developing was too vague as it trades near $12 AH. Looks like a copy of ACOR's first mention on DJIM..a gap into the morning off the 11.50close. This one has the shorts scrambling..

Update on Wednesday, October 4, 2006 at 09:14AM by Demi/ YourPersonalTrader

Follow ups this morning in MChat on ACOR. Financing announced, we stepped out.

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 holds/ hit list#8

Time is flying by with not many changes to the DJIM list from week to week as we run into earnings season..hopefully to ride a thoroughbred or three. We don't care where the finish line might be, we don't care if they only go 6 furlongs/a Quarter or a mile and a half for a few Q's. The point is to get your share of the 'purse'. Anyways...why should we tweak with what's working for us and from what we hear for many of our readers. What happened this past week was more than a break of some of the tops on the indexes, this move included an exodus from commodity related issues in a big way that was felt around the world markets. One area to stay clear..definitely. So...the uptrend continued in the markets early in the week but the DJIM's RUT type stocks were having a hard time getting out of bed and going to work...by the time hump day Wednesday passed, the work week really started to roll for these laggards and they pushed hard so we all could enjoy a good weekend.  It is obvious from our Journal where the concentration sits with our DJIM stocks recently...TRT, SYX and flash in the pan ACOR..RIMM. 

TRT needs its own paragraph. We threw out the PR bone of TRT increasing capacity in their Singapore plant by 20%. Did you go hhhhmm what should I do with this info??. We sure did and with the timing of the pullback to the 9ema it was perfect timing to buy more as noted  You don't increase capacity by 20% unless you got work to do!!. The backlog keeps inching up..more to come?, maybe as the PR machine is announcing contracts now. Friday morning we got a taste of the 20% with the contract announced by TRT. When we introduced TRT in the $8's, one of the things we said was we don't care if the insiders sell this first leg as the float and interest would swallow it up and move on. If you did some DD you might have noticed the buying of TRT by an insider all year...this was the one we sort of feared as a seller..not the CEO,CFO..and a few others with titles. Guess what..the CEO etc sold some but guess who's been busy this week BUYing...A HA!...he's back!  http://www.form4oracle.com/company?cik=0000732026&ticker=trt

Speaking of lining up the ducks...did you see the fat duck with 60k block at 13.25 show up and get swallowed up hole in a second near the close. You can't ask for anything better.

TRT archive:  http://djmarkets.squarespace.com/journal/2006/9/23/the-follow-up-on-trt.html

SYX.  http://djmarkets.squarespace.com/journal/2006/9/15/syx-1340.html  ....keeps rolling along..what else can you say, slow and steady now. You knew it was a matter of time before it kicked that growth off the IBD#1 slot. Fittingly as it makes it to #1 it makes the DJIM 25% list/benchmark officially...the 9th stock to reach this goal, many have been for much more than 25% since DJIM was introduced late August.

The craziness spilled into ACOR, our "$2 dollar ticket" to possibly hit the trifecta has turned into a habit of going back to the track almost daily. Been there, done it..can you tell..lol. This week was the 3rd charm as we bot the low 11's and watched it turn into a wild horse with all of you. We have discussed this type of play in detail and will continue to look for opportunities to re-enter. As we said in MC before this ride to the high $16's...this ain't through just yet. We still feel this way as stomping the shorts probably is not done with. Watch for PPlacemet to be announced as completed for the next possible play opportunity.

RIMM..the black sheep of the DJIM family in size has acted nothing like it as it's put in some nice points to the upside as well. Since our AH buy and profile it has come back to our price before catching the winds and climbing 12% for us by friday, hitting $112+ before giving some up to the profit takers heading into the weekend. Maybe it was just Lemieux and the Penguins hacking away as RIMM climbed and climbed.

IAAC...doesn't it just feel like it will catch the volume and explode up?. Since we've been following from the 12's it has always received volume out of the blue. As it creeps higher, it feels inevitable....number 10 on IBD might just produce such interest again...a refueling of sorts.

That's the cream of the DJIM crop last week with most of our efforts and therefore dollars concentrated on. When things roll it is easy to lose sight of others...the DGIT's of the world. The CPY, CETV, EDU, MR have made nice returns, some just for quick trades and sit quietly in a range as we wait for a move to gain interest again. These are not losing anyone money, the story is still there and we hope to play these more again.  EML..a crawler we mentioned before the pullback we actually wanted..is near the 9ema and next week has its record date on the 10th for the 3 for 2 spilt. AZZ'zzzz is snoozing with volume drying up last week, the chart looks like it drew a flagy thingy for the past 6 sessions and its about time it picked a direction. Considering the earnings... still betting to the upside. Also an eye on past DJIM listed stocks..ANGN, TWLL as they knock on high's doors.

As EPS season starts keep tuned to the "Extended Trading"  thread in Market chat before and after regular market hours. Many of us like to play and enter positions early or use the extended hours for a fast trade. We look for your input in catching something good.

COMP/NASD100

World Series..

If this market is a baseball world series, then DJIM stocks surely resemble the tigers, the mets.. etc.    Did we expect anything less from our stocks?  Nope! Lol    Ok joking aside, we are having one of the best days here since the inception of DJIM blog.   Just about every one of the stocks on our watchlist is doing a "hell ya"! 

TRT, our champ stock is delivering its promise today.   Now shouldn't people feel like loading it up on that last dip?  We are just glad that we did and it's paying off nicely.    Oh and don't forget, it never hurts to let some off the table.   We at DJIM let go some of our trading position to stay disciplined.

AZZ, it just doesn't take very long for a stock with its kind of earning/float to break out.   We added some and hopefully it keeps up till the end. The flag we pointed out yesterday got some wind to the upside nicely.

NGA catching a sympathy ride too.

SYX, as BT have pointed out, a big volume day may take this one out of a potential pullback.   So far it's on pace to get a big volume and we are trading it accordingly.

IAAC, textbook,   We added!. Yep, the refueling we discussed over the weekend gave it the go ahead to move on up.

CVLT, this one is also trying and we think if it gets a good close, it may get some legs.

ANGN, 10 dollar psychological mark is broken and we were adding on this potential break we discussed in DJIM #8.  The whole sector is basically on fire and no reason it should stop here.

Keep focused and trade accordingly to the action, this is about as good of a small cap action as you can get here.   We've said it not too long ago that this is where your most dedication, effort, energy, capital and focus are needed to make a good run out of this market.

RIMM- celebrating a little thanksgiving with us. A good one to fellow Canucks out there.

ACOR- we missed our AA meeting this weekend..ACOR Anonymous, but we sobered up quick this am and will wait it out now.