Market pulls itself up...
Tuesday, May 1, 2007 at 10:43PM DEFIBRILLATOR anyone?. We're thinking of having one on hand for the new members..;)...Those that have been with us and trading these types know there is no great reward without a little heart stopping activity..lol.. ..In regards to the market tone, if we get scared, we'll tell you as we always have by issuing an alert like in February. Right now everyone is trying to say the market is over bought and bringing in the seasonality factor to scare you out of your positions. If they are right.....FINALLY!.....and they've been trying for months, we'll gladly go into cash and withstand the punishment others might start to feel while being very selective in our plays. As far as we are concerned, we go day by day and a pullback eg. on the NASD to 2500 level would be nothing but the perfect retracement to go higher. If this level breaks down on volume, we might be issuing that alert. Also, this is earning time and we will have new plays to come even/ if in the worst of times in the next month or so.
On to today...
It's actually refreshing to see that market did the opposite of what it did yesterday. That is, instead of turning lower, market managed to turn green later on in the afternoon. Again, we can't really draw much conclusion from this move. It's actually been a very mixed day, when it comes to our DJIM stocks. Some stocks were hit earlier but managed to reverse and closed well but a couple of stocks did not seem to be affected by this market, one way or the other. We are keeping our eyes on all of our recent earning plays and will decide to see what sort of action we'd take on them next few days.
TRCR, this one actually bucked the trend earlier and stayed strong throughout the day. The action today actually surprised us a little b/c we didn't expect fast momentum to come from this one out of all of the plays we'd covered last few days. lol We are not complaining though. However, it remaines to be seen if it can get some serious momentum. We do prefer a slower and steadier move with this one though. We sold most the other day and are only trading it at this point when a possible move is seen.
NGA, wow this one is volatile, to say the least. We do like the ending action though. Basically, it gives confidence that people are still very much into this one. Hopefully this one consolidates a little here and forms a strong base so we get to much higher prices.
IDSA, is another that held up well today in the early going. Volume has been low the last couple of days while holding these levels. A good sign as potential sellers seem to want to stick around and see if this makes a run late in the week for IBD. It won't take much to push it from this range over the hump. Notice the last 3 days on chart, you can almost draw a perfect triangle > with today's close at 13.50 right in the middle. Basically, the range got tighter today and something has to give. A few of the things mentioned above makes us think this will go higher this week.
ALGN, this one battled back from yesterday's weakness and it's very close to a new high. We are looking to see if some of the other earning play can pull a similar move within the next few days. Hey, if you got a think for teeth, there is ADPI today. We like but want to see what the secondary earnings names we've mentioned have in them first.
BTJ, this one is being like btj. We just need a strong stomach when it comes to dealing with its moves. lol. We discussed DXPE the other night, BTJ is no different and same rules apply. If you are starting a position the last few days, you are only trading it and should be jumping further in these moves. 5 pts off low today. If you bought the earnings and like the story heading into the summer, stay strong....if it's not in you....move on.
The last few days we've had some intraday swings in the market, potential plays either don't materialize like yesterday or some get more juice like CPY did today...so take them as what they are and that is leads, keeping in mind the overall market conditions. Simply the chance of a stock breaking out as it nears a playable area is thrown out the window (like SSVS approaching recent highs), if the market panics and reverses as we saw yesterday.
CPY, Sunday we brought it up because it exploded Friday to new highs. Today you saw the significance of updating your screeners with stocks near highs. Today's range was 57.51 to 66.62 on volume surpassing Fridays...9 potential pts worth to play inside of. This is a lead that materialized at 2pm as it popped another 3 pts after our note on it. Something is up here, we don't know what but it is bringing in momentum. We're trading it in small sizes today. Speculation can die off quickly so care is needed here.