and possibly more churning ahead of us! Despite the fact we are green today, we are very much in a churning mode. As far as the overall picture is concerned, this is considered healthy. We churn churn until we see a clear break out or break down of the major indices. If we break out, we would know exactly where the resistance is but if we break down, it's hard to gauge the exact support line. Of course, you can always argue that last July's low may be the area but we feel that low may be too low for the current market environment. All this market gibberish does not mean there were not a load of tradable opportunities from this weekends DJIM#11 and that is all we care about end of day!.
So what's happening with the market these days? We think many Briefing.com chasers have the answer and we are sure they are having a blast taking advantage of some of the headlines there over the past 2 weeks. We have said its a traders market the past 10 trading days, it's a scalpers market and this all most use the service for. Does that mean we all have to switch our strategy now to a day trader mentality and chase the headlines one at a time? Of course, we were all going a little brain dead sitting in a lot of cash, but it does not mean you switch your strategy and start going for the headlines just because you are a little bored. If you're not at work...Have an early drink and then a nap but don't switch your style!. DJIMstocks.com is not for scalpers, headline chasers. Scalping, flipping headlines is not for the majority of subscribers here and this type of trading is not for us. For us, we just can't see ourselves going through that transformation and there were many lessons learned from the past that we have to stick to what we are good at, more so now than ever. Besides, there's really no art or longevity to trading briefing type of plays unless you have no trading life or life and can address and listen to 300 "peeps" alerts all day..then read and then be ready to jump in and out. We prefer to use our own imagination and our own opinions. It helps as any news wire, but it's not something we need or would ever live by to trade. Also, it's two of us against 300 of them in an office and we still get out enough winners to live off before they get to profiling them. That has been shown way too many times over the past few years. Anyways...We gave a weekend hit list for Monday as to what we'll be looking to trade. You didn't need a Briefing for these moves, all you needed was a "lead' from DJIM;).. FSLR+11.2% TSL+9.2% CYNO +8.45% BTJ +7.5% JSDA+9% or give a "one damn eye " on AFAM when it had traded 100 shares premarket at 20.90 and then later to a high of $23.90. Nobody is expected and we don't expect to catch all these moves, but if you had a small hit list as given last night... you should have had a stellar day just by going after one or two. What we are giving is what we are looking at, if you don't want to look at it and give it some attention when its behaving well..meaning it's green and getting interest....well then you're missing the point of DJIMstocks. You should not be looking for other opportunities if these are in front of you already and working. We become oblivious to other names when the going is this good. All efforts and capital are with what is working!!!. No time for laggards!!! No time to look for other plays. OK... We weren't fans of JSDA and said last night we'll see...well we saw very good interest and traded it but still are not waving the Maple Leaf flag. Still fresh on our minds as per Journal and IBD listing and therefore this should've been on top of your trading list as well for the day. End of day we are empty of it, but will play it again. No flag burning, we will just wait to see if it has more in its tank.
So how do we approach this market then? We are still finding some of those earning plays that we've been covering for a while and singling them out as our trading candidates. Here are some more...
BTJ, could it be that ppl are discovering this stock for the first time and trading it like a momo or could it just all be IBD fever? We think it may be a little of both and we are definitely leaning more toward that IBD thesis and as pointed out last night the steadiness of Oil over $60 recently..helps!. Yes, it's ranked as #1 IBD100 over the weekend and the reaction today is very good, especially given the fact how much it has climbed last week. At this point, we have to caution that being IBD #1, this stocks's fundamental may be thrown out the window and momentum/trading will be taking the dominant force behind the action. Watch the action more and don't ever let your feeling of "how much the stock should be worth" get in the way of making proper entry/exit point as the stock behaves along.
FSLR TSL, this pair has definitely been our favourite solar plays, or rather, the only solar plays we trade during the last few days. Again, we'd favour FSLR slightly more here as TSL is more prone to "gap downs" off weakness in Asia. Also, we are pointing out that these two are mainly eps driven, and this is the reason why these two have the biggest momentum among the solar space. See, the action still comes down to earning. So are we going to play any other solar laggards? At this point, we aren't even considering touching any other solar plays b/c in the world of stock market, only the best get rewarded. In other words, there's no second or third place when it comes to naming a best play. We have been trading these ones aggressively on the long side but we have been doing it with smaller sizes than we would normally do in a favourable market condition.
EML, this little one made a new closing high but we aren't willing to give it a hard chase b/c of the volume and still just hold a part of position from earning time. The point of pointing this one out is that odds are always on your side when you are stuck with an "eps story" as oppose to other kind of plays. Just look how far SYNL, EML have come since being DJIM insertions last Q. If you want to tuck a stock in a drawer these thinsters with earnings provide a safe play early on. AFAM and EML are very similar, except AFAM has a history of holding its big gains better. AFAM made a revenue high of 26.32mln and reported a high EPS Q of 26c vs. 16 YOY. We held a small piece through to close after taking advantage in some of the 3 pt move intraday. Simply, we don't want DJIM filled with these plays at this time, it does not mean you can't put it in a drawer. It just should not be the focus of so many members as EML started to become at one point early on.