Maybe we should have a huge sigh of relief over today's results or better yet, a drink or two! Overseas markets were rocked by 'our' yesterday's mkt, so expecting a retest of the recent low was just about what everyone expected. What everyone expected came as expected but we bet not many expected such a wimpy test of the low and the almost immediate recovery. In conclusion last night, we mentioned a break of the recent low support and then a break of what should become resistance to the upside quickly as a possibility. Well, it happened and we could get continuation but this definitely puts this market in a trickery position as this happened a little too fast and easy. If you believe that we've just hit the bottom then further churning would make this thesis very healthy. If you believe that there's way more downside to come, then today's action may be nothing more than a wishful blip until the real selling starts.
Either way, we don't take a stand and we take the action one day at a time. One thing is for sure though, we keep mostly cash and only trade with small sizes and trade those names that are currently in favour and in play. Of course, if momentum comes we add and trade some parts intraday making sure we are not over extended overnight. This may sound too corny to many of you b/c we have been saying this just about everyday but unfortunately we have to show how serious we are when it comes to how we approach this market.
Here are some stocks we've been trading today....there were a few nice opp's out there.
ASTI, perhaps we should've alerted this a little earlier and the reason why we didn't is that the index was getting hammered earlier and we weren't sure if any plays could've been dragged lower by the potential panicky market action. When the index turned around, we knew we want to get out hands on this one as we thought the news the co. released was some very positive stuff. Still a possible opening entry was available between 7.50 to 7.90's after we threw it out for some time. We think this may legitimize this co. as a solid player in the solar space. The float is tiny and momentum was strong.
AFAM had a beauty of a day with a close over $25 and now is 4+ points since Mondays note on it premarket off earnings.
TSL, no one is a stranger to this stock, we chased some near the end looking for some follow through tomorrow. Keep in mind, as long as this one is above its 9 ema and near 52 week high, this one would always be in play off a strong index move.
BTJ, maybe we shouldn't call this an oil stock anymore. This looks as if it has IBD trading all over it. Yes it's currently ranked as #1 IBD100 and yes emotion is high with this one. Throw out the fundamental and pure action takes over when it comes to BTJ. We'd be following its action closely to gauge its momentum. It works both ways never forget.
The most entertaining was the mother of all squeezes in LEND that was just beginning when we noted it in the forum in the low 5's. Even if you didn't trade it and only watched, you probably still got a rush out of it racing to 6.60's. Anyways, it was a good reminder of why we love this gig! ..Cussin' for all the right reasons in amazement instead of yesterdays type of cussin' at the market. We'll keep this close by for another intraday trade after getting to know its potential.