One for the bulls...
Thursday, October 25, 2007 at 07:10AM Regardless how the individual stocks finished yesterday, the action has to look pretty good for the bulls. Of course, you can say it's only a 200 point reversal on Dow and Naz still finished pretty red. But, these are the kind of finishes that just cast aside any fear for a further meltdown. Also, we had some pretty bad news and reports from the likes of MER and BRCM, and a poor trading reaction from AMZN. The market eventually absorbed all these very well. This doesn't mean that everything is ok now and the market is heading back to new highs. There will be more bad news from those sectors that are in trouble, and there will also be good news from those sectors that are doing well. If this market can absorb the bad news and continue to reward the good news, then there's every reason to go long this market. This was the first time in a while where the market seemed to absorb the bad news really well and give a cause to cheer at the end for bulls. A big positive.
Don't throw away your momentum favourites. This is definitely the lesson we have been learning in the past few weeks. RECYCLE
LFT, this is probably the most exciting Chinese IPO since STV. Compare to STV, this one has even a smaller issue size which explains the action we saw today toward the end of the day. In terms of business, these guys design software for the financial market in China. The financial sector is definitely one of the hottest sector in China right now and there's belief that companies like LFT will reap benefit from the huge growth there. We were trading this aggressively just past the 3pm mark, timing it with the market turning. It would be nice to see YTEC get a boost from the late surge in LFT. It did look good in the morning....maybe this morning it will give it another try.
RBN EJ ISRG, if you hadn't thrown out these names, this would've been a pretty good day for you.
SPWR, with a 6+ pt reversal after 2pm.. you can see why this stock falls right in line with other DJIM plays. Volume was there again, but after a 2 day run of nearly 10pts off an add alert, we used the strength to sell most. We'll be back shortly.
Look around ( DJIM watchlist) today for stocks that did not particpate yesterday in the recovery. They might today if we have a good morning vibe going.