Pivot
Tuesday, November 27, 2007 at 07:54AM
Demi/ YourPersonalTrader in 'CASH ON HAND'

You need a good a pivot foot to drive to the basket and this market has its laces all loose and tangled and keeps falling on its face as it attempts to take a step forward.   Yesterday was a disappointment and it was set in motion by a few firms laughing off the holiday shopping.  Guess all their junior analysts walking through malls saw something different than the numbers put out that got some thinking positively.  The action just proves that if you are thinking of going in on a somewhat longer term trade, it is better to wait for a few first downs to see if the market can hold on to the ball if it starts to march up the field.   Yesterday, after the first 1st down on the Friday the market was sacked 15 yards back into the red zone.  This being the 12800 yard stick on the DJIA.   Well, just following this close while all the Bears began the Bear chant of recession, Bear cycle again, Citigroup announces an expensive capital raise of 7.5 gazillion dollars to Abu Dhabi Investment authority. This capital infusion and the CEO commitment to maintaining the dividend and not cut could restore some confidence in this issue and help other financials.  No promises.  We're not going anywhere unless the financials start to rebound.  'Maybe' this news gets us back over12800 to start.  It's not much in the big picture, but this market needs all the help it can get at this point.   As we said in chart section this weekend this area might be riskier than all the ones before that were broken.

We haven't mentioned a stock here on the Journal for about a week now.  It is best we don't give any ideas to those that are not more than intraday traders at this time.  Just too dangerous.  There are a few stocks that are providing some trading opportunities, but unless you can have eye(s) on the screens throughout the day, you might as well continue to get splinters on the bench.  Even...below is a case and point in one stock that was acting well against all the odds lately.

Just a trading note...a general rule for us is to rid of stocks getting a negative headline immediately.  Sometimes this is an offering or whatever and deal with it after.   But it is essential to get out the door early.   This brings us to BIDZ yesterday.  Most of us here know that rule applies to Stocklemon reports on a greater scale.   Usually they go after stocks we've traded generously to the upside and therefore these stocks have lots to give up fast and usually do after a report is published.   A members note on the forum yesterday, hopefully saved those playing BIDZ some 5 or more points.

Article originally appeared on Your Personal Trader (http://www.yourpersonaltrader.com/).
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