Despite all the hoopla since the premarket note on non-farm last week, we haven't seen the volume we would like including on Friday. Some did, we did not. We figured there were a lot fence sitters waiting to jump off and into this market long. Unfortunately, we have not seen the conviction in buying. This market might be a little exhausted after all the subprime events over the summer and now needs a push. Earnings could provide this kick in the butt, but this could be a little ways away. In the meantime, we deal with a possible lull or pullback in the short term. Yes, you can blame the volume on Columbus yesterday for the lack of activity, but unless the FED minutes provide a surprise stimuli, we might be in for more mixed trading until we get the significant names reporting. What matters this earning season is the guidance for the 4th Q. A stock might be beat handily, but if the guidance is average the stock may still fall. Be careful chasing the headline number and wait to see the guidance before jumping in. So..while we might be taking a breather in the US indices, the Asian markets new highs spillover and we continue to find possibilities in the stocks listed US side....They have no fences left over there it seems!..lol....If we could highlight one stock every day before morning, like STV yesterday...wouldn't it be just swell!
STV, definitely the attention grabber yesterday as seemingly a few dollars were made available over the weekend to chase this puppy. The reason for the action is just as expected. A mix of China and tech with quality earnings is a fine blend to drink. We have thirsty traders, they can't get enough of this China bubble tea stuff. You already can see what happens and might happen day to day when this gets intraday toppy. The stock fell over 4pts in minutes to its breakout afternoon point where it gained steam upwards again. It was fueled with a little print pumping by Briefingcom..well, what else can you call a posting profile 10 minutes before the close and some Cramer doing and this stock continued on AH and then today's premkt. This is not a stock without fundamentals behind it. Also as we said yesterday it trades on the NYSE, supported by Tier 1 firms which makes it different than the recent Amex high flyers. This doesn't mean the action won't get volatile, it just means you may be able to put a few shares away for a rainy day and swing the rest day to day. Will the action around $50 levels provide a psych wall in the very short term?. It should and sometimes these plays high out premarket following a huge day, but after playing yesterdays action you know there are plenty of traders knowing and wanting to drive it down the fairway 400 yards soon!. Have fun!. Just remember to hit the deck when you hear 'FORE" at a toppy juncture!. Don't ever feel left out and start chasing blindly. This is not a Baskin Robbins flavor of the day or week stock, it will be here for a while. It beats any XFML pump and dump on a Monday morning;)
DRYS EXM TBSI..oh, stop it, please...no wait don't!. These guys keep on marching forward and while the solars (not FSLR state side) go through their internal problems, this niche is providing tradable days over and over again as they continue to make new highs. PRGN, ESEA had nice days as well and might provide a continued secondary play. For us, it's simply sticking with the 3 big boys we have followed for ages now. It is easier to trade the ones you know then going off and participating in something you are not so familiar with. Call this your little black stock book rule!. This am, KKR bought up a Turkish shipper in a deal worth something like 900mln euros. We've said this last month as we alerted the shiipers as a whole, we expect consolidation in this sector to come and you have to thing one of the 3 boys will be swallowed up sooner than later. This gives the sec a little more juice.
VMW, this one has been cornered here again recently with the prospect of 90+ dollar days ahead. We are there now at $95 and might have to start looking soon at $100 prospects if the tech keep providing the lift it needs to go higher.
MHJ, as we said we think this China has the fundamentals to go higher in the Q's to come. We don't want it to be mixed in with the spec stuff and prefer to see it walked up. This doesn't mean we won't take a bubble day or two, but it will mean we will take the profits it generated. It's acting well.