A day of rest it seems. Not much conviction, a few flickers of green and then much ado about nothing
by the close as the Bulls got the sword in it's butt and backed off for the time being. Sitting Bull. At this point, we are not expecting new stocks to emerge as quickly. So, what we do is look to the stocks we have played or watchlisted this Q to see if these names have any potential if the melt up continues. Preparation is best, trading stock for the sake of trading is not. A little boredom might sink in, but sticking to your style..your niche is essential. Easiest way to curb your need for a hit might be to look at your successful trades recently and see if what you are considering to trade has any of the characteristics of your winners. Simply, we are not seeing a NGA, IDSA, LXU, CROX emerge. Still micro-small caps will still continue to expose themselves while you hear earning season is basically over now. So what do we do?, well we back off and just bother each other over IM until a play comes along we like and fits DJIM. So, considering we are not seeing anything new come that needs immediate attention....here's a few you have seen cross the DJIM wire recently that we are holding and/or adding to today.
TBSI, we like to nickname our stocks. Tipsy is fitting for TBSI in the first hour today. We thought we'd better get the barf bags out for the quesy ones as it slipped from a good open to low 20's. We knew of the shipping D-grade before the open on a few names but we did not think this would it would spread to the TBSI,DRYS and a few others BofA did not cover. When the drop started, the first thing we looked for was how the sector names were performing. Seeing a few names had rebounded already, we averaged down and took more TBSI on. By the early afternoon, it was back grinding away at $21 and eod definitely had some steady buy interest. If this this makes it to IBD this weekend, it will be a new name to many and will most likely have interest next week. This one is completely different than the IDSA inclusion type play goal of $15 where you expect to sell the following Monday on the exuberance follow through. This a dry bulk shipper, a hot sec with earnings numbers that will be revised after their report. We mentioned DRYS and the sector back in April, few money players might be looking for a new name to grasp. We hope Tipsy could be it.
CROX, This is as pure a earning play as you will ever get. You can't beat this Q's results and guidance. Solid since our first buy-in mid 60's AH, it is now closing on 80. We said the guidance was crazy and with a little patience you are seeing what a stock that actually has a solid company behind it can do. An upgrade was noted yesterday, don't be fooled these upgrades don't show it's worth immediately. It's the D-grades that you should worry about immediately. Volume was there today, highest since earning day.
GTI, hung in there and looks to be shaping up for a try at IBD tomorrow. This one is quite different than the
IDSA, NGA we have considered as a IBD inclusion plays. There are hedgies here that will knock you
down silly if the trip to $15 gets silly with exuberance. Think of it, you are a hedgie and you know the crowd
might be bidding hard for 15, maybe you'd just set a wall of sells at/near/above $15 on a Friday?. Could be a lot
of smoke and mirrors tomorrow...also, you don't know who might be pushing it up, including other hedgies late
in the week...and you don't who's waiting at $15 if it gets there. Take out the IBD stuff and you have a pure turnaround story who's bottom line is changing. Sooner than later this will be at $15 +....Volume should surpass 2mln easily tomorrow and like CROX volume maybe the kick start to a good close.
Speaking of volume..this is what is lacking right now in some other holds like FWLT, LXU etc. Like CROX today, volume tick to the upside should be what gets these stocks rolling again and gives us a reason to add shares.