Reassuring day?
Monday, August 6, 2007 at 09:18PM Perhaps Not! It's just troubling to see that index is up so much while the decliners are still out pacing the gainers. Ok, many of us have to admit at the end of the day that this huge point gain hasn't really done much for us, the individual traders. What the market is doing is that it's trying its best to confuse and frustrate traders at the same time. Do we play this rally aggressively or not? For all we know, tomorrow could be a nasty selloff day. This is the kind of uncertainty we are facing day in and day out for the last little while. Under normal circumstance, this rally would be viewed as very bullish. In the current environment, it only makes us fearful that this is just another rally that would soon be crushed. Well, if pattern serves right, we'd be going right down either tomorrow or the day after. Ok, enough of this "once bitten, twice shy" analogy.
What we have been doing today is prioritizing our trading list and put those stocks that have just recently announced good earning as the ones to play and monitor. Many stocks have suffered lots of damage technically but we are able to still find some decent plays that offer us good trading setups. Here's a few that ought to be familiar by now...
FCN, this one came out with earnings when the Dow dropped close to 300 points last Friday. Today we believe traders are realizing the value of its earning and bid it up. We like this one's momentum and we are trading it aggressively.
ARTC, this one also is a recent earning play that has pretty much weathered the volatility of this market. Perhaps it has alot to do with the type of business this company does and it's definitely standing out from the crowd and notched another high.
LKQX, it came out with earning last week and it notched a new high quietly. We like this one's setup today and we are monitoring it very closely.
GHM, this is one of the very few small caps that actually did well today. We added some and we are looking for some more follow through on this one.
DOCX, after its first earning reaction last Friday, we are more encouraged by its action today. The more we read the report, the more we feel more confident about this little play. The only question remains is the question of sustainable interest. Will there be enough interest that can give this play a run? At this point, we aren't too sure but we did add some today on its improved action.
CRNT, so this one came out as #1 on IBD100 and we got the initial pop as expected. We don't think this play is over. The longer it stay above $15, the more likelihood that it can try for more upside.