One big day is being followed by a so so day. Simply, there was no catalyst today for the market. We'll take that as we wait for earning season to get into gear. By now, we are hoping everyone has gotten used to the idea of selling some positions early in the day to lock in the profit and look for opportunities late in the day for a flip next morning/ day. This is no time to watch 3 and 4 pt drops and watch your profits disappear in plays like TSL USAP when you should be building a earnings nest of cash to have on hand. Come back to these plays. Call it a trading system if you wish and it has worked well during the last while. When earnings start flowing this is when we will get back to the more usual type of trade. We have officially kicked off earning season tonight with AA reporting and it looks a little ho-hum to fuel a 9th straight day of highs for DJIA. The market will be focused on earning reports next few weeks and so shall we. Some standout action today...
FSLR, solar stocks taking turns leading the sector and today's FSLR's turn. It finished up over $60 and did not give up most of its gain today. Again, we have to point out that a big point gainer in these solar stocks may not guarantee a nice follow through the next day. We are going to be watcing the first 20 min. of trading closely tomorrow to see which way it'll lean before we decide to lean into it.
ASTI, this is a stock which we had skepticism earlier in the day but stock proved its worthiness toward the end. Again, we just don't want to draw the conclusion too early on a "potential" setup untill the setup actually materializes. What's the difference adding at $9.40 early in the morning compare to adding at $9.60 near the close? In the first case, you are running into a possible scenario that stock fakes a b/o and may head back down. In the second case, you ensure that the stock closes near the high and prints a nice candle on the chart which gives a much better probability of a potential follow through tomorrow. The end difference is about few hours in waiting and 20 cents in price. To us, we'd pay for better probability and this is what we meant by buying at higher price if the action can firmly confirm the setup.
SLP, this one had EPS released earlier today and stock just strengthened throughout the day. We are playing this one b/c of the reaction to its earning and its recent trading history of being one to play. This one can get some serious momentum and today's price/volume shows the kind of potential it can get. Go with the action. Trade what you see from the action, not from the press release. Again, this one can get volatile so we are treating this one as a speculative play only. We mentioned this one in the forum as something we're looking at 15.60ish, a quick trade ensued for some to 16.48high.
GMRK /MFW, we added some back on both of these moves and will be looking for further strength next few days.
NIHD, another NCH at 79.37.
GRZ URZ, guess we are spreading our wings a bit, maybe it is the ease to get 15%-20% on these cheapie plays quite quickly. GRZ was intro'd mid 6's, so it was a quick $1+ ride to 7.60 today. URZ, we intro'd last night and just want to follow up as it was up a quick 6% today before giving it up. So did we..lol. Still.. Uranium is hot, it rose to the highest levels since '86 and was up over $2+ a pound last week after having a big '06 when it was rising .70c a week. Nuke fuel is in demand and if we can catch a cheapie for a ride here and there, we'll try again!. There is a bullish macro future here, so why not. Again..these plays are speculative in our DJIM books and not where we are concentrating on making money.