DJIM #26 2007

You wanna talk about a market driven on any hint of news..well we've got one, which is leading to volatility left, right and center. This is hardly a bad thing for many traders who are being selective and opportunistic.  We've noted a finish below 2990 NASD would give us maybe that bearish feeling, well 2589 Fridays close is really not it.   We are seeing recent leaders maintain their 'strong' stock tags and that gives some optimism that we won't see big declines with earning season approaching once more.  We are simply being driven by any news, unfortunately some old and some new crept into the market Friday. The old is the possibilities of a Bear Stearns saga unfolding, we all knew this could rear its ugly head one day or another and it is coming to the market now once again.  Frankly we like the battle between BS and ML.  It's funny.  All they are doing is pounding each others stock.  You think BS didn't kick MLynchs butt back on the market for what they did?.. They didn't do it by selling 100 ML lots.    The new news is the government intervention into the markets.  It started with trying to stop the BX IPO and then spilling into a full blown attack by introducing legislation that would more than double taxes on the hedgies, buyout firms and more.  This accelerated the selling Friday and we are clearly at the mercy of news.. any news.  If it's not the Yield, then it's the Gov's nose..then its the subprime stuff coming into the psyche of traders.  The thing that got this rally going was brought on by earnings!!.  It was earnings driven and the savior in all this might be that the focus will slowly turn to earnings in the media that kick off July 9th.   As we've said many times before, we don't see a market tanking just before earnings.   We hope this is the case this summer and with the SMH showing some leadership,  it might be the way to think.   Anyhoo.., what we will continue to do is be selective and opportunistic with a hint of caution, which is never a bad thing to keep you on your toes... A few selective opp's from last week, lead off for this week, everything else just keep an eye on 9ema, volume and  look over the charts posted.  They are there as a 'GUIDE' for those not so experienced, those who can't pull the trigger one way or another...buy, but most importantly SELL....Don't get beaten down in any position that you can't get back up from!....How do you know you can't or won't? ...well you don't, so don't risk finding out!

CMED, an early week alert for a buy in under $30, it traded between 31-33 for the rest of the week.  It has a few things going for it into this week. First, technically as you probably can see by its 30 minute chart.  Second is you throw it's IBD inclusion at #82 this weekend into the pot and stir. What you have is the ingredients to see this go through it's resistance from last week.

GTLS, a buy in in the $26's mid week this sustained its move and showed even better strength on Friday as it kicked up to $28.80 high. Another 1mln volume day and you start to think it is slowly being discovered. DRC is #64 IBD and this is the one GTLS was compared with as noted in a Journal entry last week.

LPHI, MACHINE!. What else can you say about it so far.   It trades in its own little world away from all the noise of the market. 

SDTH, it looks quite ready for another leg up and the best thing was maybe it didn't move yet (on Friday). Nothing like a few more days for some to digest the potential chart play here on a break if it occurs.

SPAN, this recent alert DJIM for a leg up is a trade idea for early in the week.  A helluva week for it and then a drubbing from $27+ to 24 on Friday intraday. Over 3 pts down on Friday market action down.  Thinking this will get a rebound , it is IBD100 inclusion at #73. 

You have to deal with what is front of you.  At this point, we have to admit the market took a drubbing last week and because of that we should be more cautious.  Nobody knows what will come out of the horses mouth next..or do we know who or what will be the horse that leads a stampede one way or another.   We just think earnings chit chat will take over shortly and the other noise might actually stop.  We'll see...let's hope!