DJIM #11 2007

You can't tell traders, investors,  'March Madness' is about to tip off.....it's been center court since February 27th and there is no Cinderella story emerging.   Actually, she went to a 'Rally ball'  last week with a tall checklist but all she had was change it seems.  She wasn't the only one.  Simply,  you can summarize last week as a week of high expectations for bargain hunting without a lot of buying.  By Friday volume had dried up, there is simply too much apprehension in the players even after 3-4 days of a reversal. Three days of a rally mustering up barely 1% of a gain in the indexes is little to get excited up.   As we've been saying this bleeding might need time to stop, right now the traders are looking under the band aid for reassurance the cut has healed.  Simply they are re-bandaging all over again just to be sure it doesn't bleed again with an unexpected news blurb.  Somehow the trust has to come back,  maybe we will just consolidate till earning season blooms again.   Hey, it's only a few weeks away till April kicks in, yet we are still finishing of the first Quarter of  '07 with micro/small caps reporting that are giving some play (JSDA #99 IBD).   If there is anything to look forward to, it is a fresh Q of potential plays to feed on.  Considering this is what DJIM is centered around...we've got more hope and can live through this corrective activity more than others playing a different niche.  Oh yeah and one thing is if you don't follow our, "No holding into earnings" stance..maybe you should at least follow it now until this correction subsides. The guillotine is sharper than usual in this sort of market as seen by the PSPT,GMKT beheadings last week....... Be cool, be selective is the daily memo here.  The momo trader needs something, even if they are in rehab at the moment.  One play that seems to be gaining traction again is the Solar play, actually this slowly should become a longer term play as this area is not going to go away.  Sooner than later owning one of these and putting it away under a pillow might be the best strategy.   We are playing both again and have written about them in detail as to their differences.  TSL closed much better than FSLR on Friday but FSLR still had some higher price buying AH's.  Right now, it's a game of jumping tracks as one or the other is providing opp's for a nice gain and we are doing the same a lot of the time.

SNCR, finished well Friday and is one of the few we had selected earlier last week. A timely move just after mentioned in the forum of setting up nicely showed promise at the close.

Early in the week on the Journal we pointed out HDNG KBW UEIC HURC as ones we are looking at first at that moment for a trade. This still holds into next week as one or two moved nicely ( KBW 34-38 ) and most are holding up well or setting up for a move up in a good market follow through day.  With oil stabilizing over $60 recently, BTJ is definitely one that looked best late last week and should be closely followed or traded.  SYNL had a nice week and CYNO is the IBD in America profile this weekend.   As far as JSDA, we'll see..we're not very patriotic it seems..lol.  Comparisons to HANS is like comparing Footballs across the border...the NFL to the CFL..not even on the actual product or earning, but the ability for JSDA to ever trade anything close to how HANS did.  These are the stocks we will continue to closely follow and possibly trade on Monday.  Of course... a wake up call from overseas mkts will play a role on which side of the bed we wake up on tomorrow.

OEH, our lodging lux play before the meltdown made NCH Friday as merger, speculation activity is foaming again in the sec.