Despite the major indices puttering along, notably the Dow as the big caps lost its allure thanks to profit worries hitting the A-B-C's and even an M of the big cap niche (AA,BA,CVX,MON), the DJIM closely watched index hardly blinked an eye. This midday down tick included the RUT, rotting away till a late push made for a mixed day. Life went on here, the main concentration here this week continued on the Shipping stocks and most of us were humming....Love, exciting and new..Come aboard. We 're expecting you. Love, life's sweetest reward...let it flow, it floats back to you....Okay, no romance here, but we were all waiting for more traders to get aboard our ships filled with iron ore and cereals to send our stocks higher. Most importantly, we were waiting for those interested in a FREE ride and we definitely got this low floater discovered as it hit Briefingtrader and then late afternoon the more widely read day log that really pushed it. This was our cry in the forum early and our cries turned to smiles as they profiled FREE late in the day.
The boys DRYS, TBSI, EXM, the secondary plays ESEA, PRGN started great and of course the idea of FREE caught on. For a second lets turn back the clock to Aug 26 when we issued a weekend alert as the markets were dwindling, yet the shippers were making new highs. What a concept buying the NCH is!. This time it wasn't for an individual stock, it was for a sector. Why not?. This just stamps the over played methodology here of buying the strongest, those near highs and those making NCH's. Same goes for the China stocks we've been trading. The idea Tuesday at noon that this sector might go even higher after an already great morning proved to be true and TBSI had a nice and quick 5 point upside from the $50 mark. Oh yeah, great job Briefingcom for picking up on the secondary plays to the big boys, it only helps our cause that was expressed here early this week. We're not looking for the recent China speculative action to repeat itself, so what we do is sell to the ones boarding this train late...sorry meant ship!. Hey, every nice size cargo has to be unloaded at some time and we're not shy about doing it. FREE, we waited long enough for this to be discovered, our last note was early Tuesday afternoon and of course we were selling quite a bit into the strength. We've always tried and discovered stocks before the herd as many of you know from hanging out with us at those seedy bars before. There is money to be made in getting early, it is a clear monetary advantage to get to something first and use the later herd discovery as an advantage to your pocket book. This was the case with FREE, even MHJ got some print and pump in other circles. We don't doubt this could go higher as this discovery on huge volume should give it legs and we'll trade it accordingly. Our only fault with it is it has a knack of giving it up (gains) and until that seller is completely removed, we aren't so sure it won't again. If using the big volume surge as a gauge this shouldn't happen...still if some profit taking takes its course in the big boys soon, this FREE will see it too. The BDI jumped 3.6% and the fever will continue into Q1 `08, but not without a few hiccups. We've seen them before eh?. Not all up days are 3.6% on a index are they. Also, don't confuse dry bulk ships with those carrying crude. There isn't a worse area to swim in.
Unless the #'s, guidance from the big techs ( most importantly) is terrible, we are of the gut feeling the RUT will have a melt up into the late stage of 2007 and catch up to the indices that are making new highs seemingly daily. We're in the right place with the niche we cover if this happens..okay, when it happens;). So, don't panic when you see the DJIA drift lower just over100 points if your DJIM play list is not blinking like yesterday. Anyways, a very good week as we've been in the loop as to what is going to move.
A few scattered names of interest/ focus that we have been adding to or looking to possibly get in, include................
VMW, tgt raised yesterday by UBS, China's STV, WX ,EDU (eps next week, maybe a little run before off a NCH today), also dirty Brean Murray is here so after JRJC who knows what they might have in mind here, GLDN, which regrouped and had a solid day, CETV near highs, CSCT which had some news out on revenue yesterday, maybe even GROW on a reversal following some asset news yesterday and ARTW, following EPS midday.