Choppy

...a case of a sore throat, stuffy nose and a slight temperature. In market terms, employment...housing numbers...credit stress made for fresh concerns of a spread and hurt to the real economy. Add the need for some technical consolidation off last weeks moves and you have a sell off.  We noted this weekend the potential momentum because those getting back to the markets after holidays might want to chase or cover.  That is what we got Monday and the action today was just pushed back a day in our view.  The NASD put in a inside day on the charts and sits around 50sma, we'd watch a break of yesterdays low for downside risk.  Choppy action should continue but that only provides more opportunity to recycle DJIM stock plays...so lets get to what matters  ..stocks...cuz' we have no knowledge of what CDO's CLO's, SIV's are or can we do anything about them or the credit markets...to us they sound like something you might pick yourself up at a singles bar....

EJ...who's in the DJIM house?....E-HOUSE!.  No doubt with volume doubling over previous days, a nice recovery in the afternoon off some selling and what you have is a stock in play. Slowly this has been getting discovered and is getting the feel some want or think it can be the next WX.  We were adding late again.

WX, honestly..didn't we have enough fun with it the past few weeks to chance holding what is really an unknown stock into earnings?.  Number one rule around here has always been not playing the risk involved with holding mico/small cap into earnings. We play off the earnings for those visiting DJIM.  If you want to hold a volatile, Chinese IPO into earnings such as WX, you might as well enroll in their pre-clinical (pre-earnings) drug safety evaluation centre first.  Lowered guidance is nothing we are looking to trade the next day. Maybe the 9ema comes into play one way or another (meaning bounce or further downside), but we've been moving into a new house..E- House before WX earnings.

DRYS/ EXM/ TBSI, this group seemed to have little consideration to what was going on around it.  DRYS made a nice comeback from 69ish to finish near highs.  You can't ignore a strong sector as a trading vehicle.

GRMN, we bought some early and it spiked 2 points soon afterward, but like most stocks it gave it back in the afternoon.  Going with the DJIM way of buying strong stocks at new highs, we can't ignore it.  NVT is the other name of interest here in this space.

WBD, traded in a thin range, consolidating action we hope after the earnings spike.  A stock over 100 buckaroos trading in a 2 pt range has attractive qualities if it breaks the top range. Looking for a potential chance of an upgrade in the near term as well. This usually moves the stock in a nice way. The trading action in the short term will show if there is that possibility.

CUB,  another NCH...lets go back in time to first alert off earnings back on May 3rd and fill a DRYS-TBSI vessesl with shares!..lol.. This baby is basically a double from those days.  As steady as they come its been as we've followed and traded it along the way.  Sometimes a fault is that your number one objective is to play the fast ones as we usually do and go for the fast, easy money...but as we've always said,  if you have a book of size capable of holding crawlers as well ...these plays can be just as profitable without the need to drink or do anti nausea drugs when playing some of our more volatile stocks;)