Well, it definitely looked like there's really no other interest to keep traders from staying up till the end. AAPL's earning is out and now what? At this point, we think it's more of a company specific news even though the strong shipment of ipod may spill over to some other component players but we are not going to get too cute at this point. What was anticipated was also probably what was expected. There are very few setups worth mentioning today, so we'll tackle a couple of the ones we like and a couple of others from the watchlist.
HMIN, perhaps we are not the only ones anticipating this breakout so the end result although somewhat encouraging early, but not spectacular near the end. One thing for sure, this is among one of the widely held Chinese stocks out there. The close is nowhere near the high and it was definitely dragged down by the poor index action. We will call this breakout still but we aren't going in with any sizes. There are lots of breakouts, reversals your stocks may see, but it is always a good idea to take the gift in some size before the overall market catches up to your stock and diminishes the breakout or reversal gains. HMIN and MEND are two examples today of this.
ZOLL, this is a little rocket that would go nuts off any good news. Unfortunately, most of the gains were achieved within the first 10 min. of trading and it literally spend the rest of the day digesting the early gains. It's very difficult to play these and unless you get in pre-mkt or right at the open, there's really not that much of an opportunity. But, if you're an early starter, your day could be done by 9:35. Basically, you could make a living off these early bird specials. Of course, we have to also look at the prospect to see if this sets up a new leg up. At this point, it's not very clear whether how much of the news is already priced into the action so we are less inclined to chase any more. If an opportunity presents it self for a nice setup, we definitely will. There are hundreds of releases every morning, we try to pick out what we think is best for you to closely watch, maybe get a starter position if there is some interest. Today, this was clearly the case as the stock traded in the $66's-67's pre market.
PTT, is another example of a pre market note from last week that is doing well. We are back trading some.
MR, now perhaps this is the way they do things over there. Updating their guidance with a positive outlook while sneak in with a secondary offering at the same time. From a co's point of view, they timed it right and damage is minimized. For us the traders, we just hate to see the stock get derailed from some news like that. This by no means the play is over. We just think it may need additional time to churn over this "secondary news" or after they announce the pricing. 11 million additional shares is a big deal, in case those who aren't familiar with these sort of things. Like any other plays with secondary offerings, this news will linger over the stock price for a while and we find it hard that it will challenge the old high any time soon. Of course, anything can happen but we are going with our past experience for now and going light with this thing. This is an example of letting the market dictate the action. Initially, we had no clue of the secondary but the market told us something is not right. We thought there might be cheap shares, just not because of an offering and small downgrade.
VOL, to play the bounce or not to play? If you got a fast enough of a trigger, there's probably some intraday opportunity there to provide some quick action. For those of us who are looking for a meaningful and sustained movement, we don't think it's ready yet. Those monster 3 days rally followed by an even more wicked sell off is something that would keep some traders away from. At this point, we are saying we don't trust this thing, yet. There are also some longs who may be trapped to and are dying to get out. We'll need to give it some more time.
IPGP, played with yesterdays reversal some more and now finds itself back over 9ema. Nice if you took the 23's, 24's yesterday, but we're not sold back on it just yet at these prices in this market.
Again, earning season is in the very early stage and we have many many more companies to report. Most of the companies which fit our trading criteria have yet to report. We are hopeful that we'll see some more good report this quarter and give use some real gem to play with.
Cheers'