Three days off from the markets almost makes you forget what a happy little place you were at!. That is until you look at your trading account gain over the previous weeks or the charts of DJIM's closely followed that we/you own to put yourself in that happy space again. You see there is no excuse to be stuck in the mud after the last 5-6..trading days. Opportunities have been a plenty and the market has been with you. If you are not ahead in the game, you are not taking advantage of what DJIM provides for the day tripper or for the investor. What opportunities?. Well..lets go to the alert-forum pages and see what was there. A week ago Friday, there was...
CSV at the open and $5.50, we said to look for confirmation at $6 for interest....it was there and it has touched $6.80...
ONXX buy in premkt on forum when the phase 3 was released just below $20 and now it sits just off $28.
The same day we mentioned the stellar earnings of BW around $41 and the buy of a starter that night, it has traded to $46 since. Then there was the sooo timely mid week note on TRT lagging the field when it shouldn't have and the kick ass move to nearly $16 in less than 2 hrs on rally day. This is one example of not chasing the 30% gap on earnings and instead waiting for another entry. If that wasn't enough, we introduced CYNO low $23's...now almost 10% higher and IBD #28 by the weekend. Friday's seem to be made for small cap earning and last week didn't disappoint as HURC released their earning. We alerted we'd be buying early and another 10% was available after the gap open as the stock ran from $39's to $44. If we started the day on a good note, we might as well end it on a good note. KRSL on the reversal and an alert just under $18 for a potential kick come Tuesday was the trader alert. Well, it looks like it came in the last 20min and AH's. Again, this is an example of not chasing if you miss a early entry off earning on a small cap/float stock and instead waiting for the next entry a few days later. Last ...we checked this was trading over $20 AH's on Friday. So, this was just the new plays last week, we can't forget the steady climbs on most DJIM's holds to new highs all week. The long term holders should be happy with DJIM steel, aluminum, lodging, Internet plays...USAP CENX OEH VTRU and even our Euro play in VE, now from low $68's to $74. Hey even a licorice/banking stock in MFW. There is a mix on DJIM for any type of trader/investor. You're not expected to catch all of these plays from last week as there are many factors involved, including size of account...but you should be sticking a few of these trades hard last week. This is NOT about selling you that DJIM works, you are already here and so the only purpose of regurgitating last week is for ' hopefully ' not many of you to see the potential you are maybe missing and figure out why!!. We simply want everyone to enjoy the same success. So, if you were not in a happy place late last week, it's time to re- evaluate your strategy as we said last weekend and send us your recent trades and confess to your bad habits. A very few have done so and hopefully last week they exercised what we discussed and profited. Count how many of these DJIM plays mentioned today you hold this weekend or traded last week, this could be a simple test to know why you are not ahead of the game.
HURC, this opened nicely with not a lot of fanfare as the volume indicated. This provided some early entries at a decent and not runaway price. Soon you saw the potential in how fast this stock can move. We touched on what we like about HURC in alerts. There is nice growth of 14mln yoy in revenue plus over 2mln in net. The estimates were beaten and sequentially there was some growth which we like to see. Considering 2006/2005 yoy Q was flat last year, this is impressive considering they did .84 v.48c. Seems like they are back on track with operations in China to take hold in 2007.
KRSL, seems every Q we go through the KRSL hype off earning and most of the time it does not last. The 775K float is always advertised as the the holy grail on this stock. You see it has been beating YOY numbers Q over Q for the longest time and the same story starts. This time many will put their EFUT in their mouth and say this will become such...Hey, weren't they just saying that with FFHL and the happy smiley price targets on it. Simply, the numbers are good but there is nothing tremendous about them. But that is not the point here, it is only about how much the traders want to play and drive something higher. It depends on the mood and right now its seems to be craving a runaway, just a feelin'. The volume the first day makes us think this might have a longer life span this time around. This is for traders unless you want to take a $2 dollar lotto ticket on it. You can see the drop to 15's and the pop to 20's as to the volatility. Anyways, we got our trading boots on with this one and will trade accordingly.
With over 90% of the SPX probably reporting already, you might think it's the end of earning season. In reality, this is when the small / micro caps quietly start sneaking in with reports, so this hardly the time to get complacent and tie up cash in laggards. It is always good to have cash ready and not be anything close to 100% invested as you don't want to be selling something in order to get at another. First, you will never get the price you dreamed of for the one you've been holding and by selling you won't be getting the new buy at the price you wanted if it runs quickly anyway. Still, this has been a very productive earning season so far as we conclude week #8 of DJIM weekend updates. To name a few nice ones from this Q, we need to start with USAP as the big winner from $36's. CCF VARI VTRU ENR AVZA MTRX, a few quick 20% runs in the cheapies like TGX TRCR and some that are fresh like SYNL CGX CYNO etc. that we are looking and hoping for more out of. The charts paint a good picture of the recent DJIM closely followed, nothing we can really add than what you see from last weeks Journal, Alert follow ups and Forum notes.
Happy trading and a Happy Chinese New Year to our DJIM friends...