Summer trading may be dull but days like today cannot be ignored by market participants. Perhaps, since the majority of the traders expected a non moving and slightly lower market trend with slow volume the next little while, we may just get the opposite of that. Of course, one strong day in the summer does not mean that we'd be starting a summer rally monkey chant. What we feel, at this point is that we cannot rule out the possibility. We had two market moving catalysts today, the sell off in China and Fed. minutes. Both news bits could have potentially sparked a sell off over here but the market managed to shrug off both bits and shot up as a result. To really put this into perspective, it means that we as traders will have to keep up with our A game and not to let up on potential days like today. One thing that's obvious here, is that when the market performs strong, the beta stocks lead the charge. Some of the small caps, momentum or not, may eventually play the catch up game. The key here, is to recognize which stocks are in play and which one are not. It's absolutely critical that we do not take our own personal opinion in speculating which stocks may be in play. You have a watchlist of recent winning plays that you can and should easily turn to again when called for, like today Let the volume show us, and let the market decide which flavour it wants to put in play. Follow the trend closely and act decisively, we may just have a good summer ahead of us.
MA FWLT CROX, oh yes, the big guns of DJIM earning plays this Q were just glamorizing the indices move today. Of course, it'd be strange and potentially worrisome if these one do not participate in the rally today. The game with these is simple, when market turns green and stays in course, it's almost a given to scalp some nice points off these. But of course, if you were in these since the day we alerted (EPS), then you'd be in good shape whether you scalp or not by now. The big and easy points have been made here as it stands now, this does not mean you can`t make more points on these in a good market.
PCS, if you took anything away from the Journal last night, well then you probably were on your way early today to a nice close and a 6% day. A NCH is not far away here. TTC, another recent EPS buy in closed with a NCH.
RCCC CUB TRCR, call these DJIM crawlers or whatever you wish, they all managed a new high today !
ATV, this one had a very nice pop going into the earning tomorrow and it's capped by a late day sell off. Understandably, nobody here wants to hold through the earning. At least, those who have rode it for a few points and those who have a rigid discipline like us would not hold through the earning. If it so happens the stock gaps up off really strong EPS tomorrow, we'd be right there to bid it higher.
Well that's it!...nothing else is worth mentioning........NOT!. There was little Novcea..
NOVC, wow eh!....was that not the most exciting 30-40 minutes!!. This turned into momo momo. The most important ingredient in trading is recognizing the potential of a stock, so you can fly with it if-when it takes off. You have 5 tool baseball players, B.Bonds was one but became just a tool...well this was 5 tool stock!..cheapness, float, news, big pharma, big $$ involved. We've had some amazing moves here, catching a few at the bottom before a big fast move. These include the FWLT bust out, the CMI squeeze, the MFW ride last Q and now NOVC below $11 before the huge pop to $17+. These one day moves are powerful and we don`t give a damn if they last 30min or a day. The result is the same. You can do in 1 day, what takes some weeks, months to do in the way of a return. Our summer was made today in less than 30minutes, but being the idiot traders we are!..we were looking for more to trade within minutes. From the emails we received today, quite a few did very well too and might be going on a summer vacation..lol. The rush of a big win just keeps us going for more day after day, so we`ll stick around and look for more. Usually, we would just leave a play like this after giving it one big whirl. Instead, we were buying some back as volume picked up late in the day. CNBC always helps. Like the ACOR, VNDA, DNDN`s plays, we put NOVC into the speculative DJIM room and will trade it day to day, hour to hour now. To us the easy money has been made and that is what we first look for in spec stocks.