No second chance...
Friday, December 7, 2007 at 08:15AM It seems these days, the market isn't giving people much of a second chance to some of the speculative plays. Of course, if you aren't into them, then there's really nothing to worry about. Market opened weak but ended way higher today. Again, we have the big techs and financial companies to thank for. While indices seem to have a blast today, it's actually quite difficult for us to find good plays from the smallcap land. Now only if we knew how this market would turn out, we'd have ditched all our small ones and we'd be gunning for the big ones. Unfortunately what's happened has happened and that is something we just have to live with.
Here are some plays we are tracking/playing..
China Plays, most of the China plays did not really participate the rally with the exception of EJ. Speaking of EJ, even though it's had a really good day but we think the run-up is a little extended at this point and we'd wait for a better entry point. While most of the quality China plays stayed relatively unchanged, some of the speculative ones are just way more wild and did not fare that well. Is this the end of the sector move? We don't think so! However, we should point out that you still have to distinguish the good quality earning related China plays from the speculative ones. VISN, is a quite cheap for an IPO, unfortunately after initial 10% run gave it up and starts from scratch.
Solar Plays, with the exception of JASO, pretty much all of them went down today. We think it's best for them to find their footing for another day or two before taking a look at some of the setups. There's absolutely no rush to buy them right away. Still, note two buy ratings on SPWR/YGE this morning to stick in the overall picture.
MA/ISRG, out of the expensive names, these two(recent eps winner) managed to not only break out, but notched a nch. We chased some during the day and feel they are very much part of any index rally.
PSEM, this little technology company finally made a move today. It's currently sitting right near the previous high. It's going to be interesting to see if it can really bust out this time or not. We got our finger on the trigger and if it does kick it up, we'd be right there to chase some.