Of course, we are referring to the strong action this market has given us today. What started as a shaky morning turned to a very strong and positive finish in the afternoon. We are very impressed and we like the action market exhibited today. At one point in the morning, the breadth on our watchlist was so terrible that we only found a few greens with next to no volume. Does this mean that the recent slide of the indices is halted? At this point, we aren't absolutely sure but we think today's action is one step toward the right direction. Folks, this is summer trading so we shouldn't look too far beyond what's immediately in front of us. Still, the nerves quieted down some. Not so much edge of the seat about to fall over by the close today feeling. Here's a hint to the market, you've seen it mentioned plenty around here. PAULSON. This is one name the big boys want to speak out load. He's the insurance policy for the market. Today was no different as he took it from red to green. Others will tell you otherwise for today's buying. If you believe there are higher forces controlling the fate of this market, well then you should pay attention when he speaks. The timing is always impeccable, over and over again.
Here are some notable plays to keep close eye on...
LPHI/TNH, ok lets just get the negatives out of the way first. Isn't it funny that when market is having a good day while these two get hammered badly? Well, didn't we see it coming from a mile away? lol As we have noted in recent journal and even in last night, we feel these two may get sold off imminently due to their very extended action. We hope you did what we said and kept the stops tight. Once the stop hits, out it goes. There's really no point to wait for a bounce for a better exit point. In terms of getting back in, we feel that the most recent phase of run up may be over for these two and we'll have to see how they consolidate the next few days to determine where we may get back in. There is no hurry. If a stock deserves higher prices, it will show it to you soon enough. Jumping in the first sign of weakness is not our game. It's only an excuse for missing TNH from something like the 60-70's or so here or when LPHI was alerted almost 100% lower than a month ago. If you snoozed, don't try to pick up the pieces later in the game at first sign of weakness. It's like going for sloppy seconds, let it simmer for a bit before proceeding. It will tell you if you should.
KMGB, unlike the two above, this one has not had the kind of monster run-up and it ran into consolidation recently. We like the action today and think that it may resume its upward action and challenge its old high.
RCCC GTLS, put in a nice day all around.
DDUP/SCOR, today's definitely an IPO's day and these three all traded really well since their opening price. We are keeping them on our active trading list to trade on any kind of meaningful follow through.
JASO, solar plays seems to taking turns to shine and this one is taking its turn today. Although we like its action but we are only limiting our action to intraday trading. This one is prone to quick sell offs so we constantly keep that on the back of our minds.
LXU LDK, these two had a late day surge and we are going to be watching it closely tomorrow morning to see if there's any potential for breakout action.
AAON SPEC are past DJIM entires that should be included in a trading watch list now.