DJIM #22 2007

Maybe we should just tell you about our weekend to filler DJIM#22...;)  After last week, your guess is as good as ours as to what we might expect this week.  All we can hope for is maybe a few more billion dollar M&A deals to kick start the shortened week..anything to put some money to work.   We touched on the major indices this morning, we wish we could touch on stocks!!... Unfortunately, there is nothing of significance to talk about.   Our books are pretty clean, besides a few small scattered positions left into the weekend.  There was nothing jumping out..screaming buy me, buy me late in the week.   We laid out our plan last week to be selective, trade in smaller sizes and just sit back and watch things unfold for a bit.   We're still in earnings and so we still expect plays to show up out of the blue.   Only this time the time span of the play is likely to be much shorter in this environment.  As far as DJIM May earning plays, quite a few are grasping for air and a few are grasping at the 9ema above them.   At this point none of these plays have the potential to give us the points they did already did and so are put on the side for the time being. Does MA have the potential for another fast 15 pts as it did from $127 to 142's?.  Does CROX have the potential for almost 15 points again since being a DJIM buy.   Will stocks like NGA, SYNL now sitting under 9ema give us all the same rush as recently from these new levels?.   Simply the reward possibilities, the point possibilities are not there like they were before..so why play them now?.    A few plays like TTC and VRGY will continue to emerge, except we do not see them being what they could have been a month, a few weeks ago.   This does not mean you should ignore them.   The trip might be shorter but at this point you might just have to accept that as a market feature.  So, a few things traded late in the week include:

TTC, second day post earning saw the stock surge past $60. Not bad for a stock on sale at $56 the day before. A bounce in the market sure helped as this was just caught up in Thursday's selling. We loosened the leash a little and will give it more time.

ATV, this was one was tossed around the forum and the $30 dollar mark was already broken before EPS this Thursday. Anyways, good see readers are taking stocks off our Journal and watch listing them for potential  play.   ATV was profiled early May and we are back to trading it into earning.

VRGY, it definitely caught the right day for a earnings reaction. The reaction was rather lukewarm AH's to its earning, but around noon Friday it busted the high 27's on volume and never looked back closing near$30. Despite gapping 4 points last Q, it traded in a 2 point range for the next 3 months.  We'd like to see if this time is any different before continuing further with it.

CYPB,  if you got on Thursday notes on it, you made a quick 10% to highs of Friday. To us this CYPB is still facing selling pressure in the 17.50-60ish area.  A true break never occurred as the real volume came Thursday afternoon to buy.  You want to see volume to confirm another buy in.  This did not happen Friday morning as it crossed that resistance area.  See chart up for volume comparisons.   Simply, CYPB did not have volume to follow through and then continue to take out the highs of last week.  At this point, we'd wait for a move on volume through the highs now to play further.