Tough but understandable...
Tuesday, August 14, 2007 at 09:17PM Well, at least we know why some of the money market funds are earning higher yield than others. Joking aside, this is becoming a difficult market to trade(flip) when a sudden drop of news can literally derail whatever the bullish momentum. Good thing is that we are pretty much used to this kind of volatility by now so today's action is not that surprising given the circumstance. Basically, you have to flip into strength as oppose to wait till some bad news comes out that'd drop the market and your stocks along with it. Sell when you can! We have to be very vigilant about taking whatever the quick profit we may have on the table these days.
The way this month is going so far, it's going to be in the history book as something to remember. Right now, the game plan is the same which means we leave very little on the table going home on most nights. The only exception is that we have a strong close like yesterday and only then we could have a strong case of carrying some stocks for a potential flip the next morning.
Here are some plays....
JST, this one had some very good follow through today and closed pretty strong too despite the dreadful index performance. For us, if it isn't showing sign of stalling, we are sticking to our long strategy and added some near the end.
VMW, we have put this IPO on our watchlist today as we think this one will generate quite bit of interest days if not weeks down the road. They claim this is the biggest tech IPO since Google and we'll see about that.
ARCI, we bought a little bit of this one late as it's showing some good relative strength in a very weak market. To top it off, it closed at a new 52 week high with a break out. Again, this one is small and may not be for everyone.
SIMC, this one came out with earning very late in the day and from the look of it, earnings looks to be decent. However, given its past performance, it remains to be seen if this can get any kind of trading interest going this time around. We'd find out more tomorrow.