was it just our book of stocks?lol...you can't really tell if you look at the tight 20pt range the NASD put in, but the wild and choppy action was prevalent in DJIM stocks from the open. You could have sold out your book of DJIM holdings in the first 10 minutes of trading and called it a great day, instead you might have ended up watching your gains quickly evaporate before recovering very nicely as the day progressed. Unfortunately, unless you had pre set sell orders the chances are slim you could have sold a good portion at the higher prices. Since , most are not in a position to trade by the minute, you just have to deal with the choppiness. As we just said in yesterday's journal, this choppy action is a very good environment for trading, recycling the stocks listed here....
WBD, you're not going to find many more so thin and volatile to trade then WBD. Already having a nice move since the premkt alert Wednesday when it was trading $102-03, it acted quickly to our strategy here,.."traded in a thin range, consolidating action we hope after the earnings spike. A stock over $100 .....trading in a 2 pt range has attractive qualities if it breaks the top range". Nothing like a gap to break that range and get enthusiasm started for a stock looking at weekly highs on the charts. Momentum quickly grew and you still had plenty of time to catch our alert $112 level to catch a ride to $118+ high if you were not in already. We will like this very much again if it breaks the 116-118 levels and holds, but at these prices we have stepped out as the possibility of hitting some psychological resistance was there if you look at the daily chart. This is the same prospect we noted on GLDN after it hit the recent double tops after another nice run. We want confirmation on the close for these plays to hold a NCH (new closing high), preferably with volume before we look to play the potential nice leg up that exists for both.
VMW, it's good to see it's back to it's old self and trading with the momo that made it stand out here recently. If you look at the daily chart, you will see it had support and usually bounced off the $66.50ish. As the days dragged on it found itself at that price with the 9ema caught up to it. You can almost call it a trap of sorts as Tuesday's morning tone made it gap down to $64's. Well...that pretty well cleaned out the weak hands. Once the stock recovered to above the 66.50ish, it was clear sailing. You could see that by around 11:30, the volume move from that level to $68. It continued on scored a nice close. Again, we look for momentum here and start thinking of recent highs as a possibility soon. We like this stock a lot as said before and not only for the trading possibilities it gives, so be patient and if it doesn't participate in rallys recently..remember this from a recent Journal on Aug 29th. instead of asking us what's wrong with the stock..."WX, continued its bounce of 9ema area early on, but the move never materialized further when the market kicked in. One other disappointment was the action in VMW considering the technology sec was grooving and it opened $72's.. Sometimes the popular kids just don't go to these lame summer parties. We think these got their own game going and today they just let others play after partying for days!". You only have to look at the flight of WX since that day and we hope yesterdays action in VMW is the beginning of a new trend up as well.
A damper to this VMV move early on today might be MSFT product launch into the 'virtualization' space announced after close, but the piece of software is many months away and with MSFT's delays who knows when that might be. Life goes on for VMW in the meantime with everybody wanting to do business with them.
WX...it held up reasonably well premkt off earnings, even trading at the previous days close before the report. At the open it was a different story as it sank to high 25's. Yesterday, we said look for 9ema to possibly come into play and wow it did ever as the stock spiked back over 30. Hope some of you were watching and flipped 3-4 points quickly. Action like that gets our attention and so we will keep it at the top of our trading list.
EJ, it looked positive premarket and at the open but never recovered as most of the other plays after the initial sell off that occurred just after the open. E-House won't be long in the DJIM house if it gets hosed down like that again....Ironically, it is chasing the easy money and not buying the CUB's that eventually calls for days like that as journaled yesterday. So suck it up and have your anti- nausea medication next to your trading platform if you want to play these volatile sorts. Sometimes we feel we waste our time on this Journal as seemingly some just speed read through it and then ask us what we are doing with EJ as it was coming off day's high. These questions are always from someone who buys at the top of a day like yesterday, but on the other hand some on our forum do make notes in their trading notes and recalled EJ as a play mid 19's ....."EJ, this is a new play we added to our watchlist today. Although we don't think it's nearly as sexy as WX, but being one of the recent Chinese IPO and the way many Chinese ADRs have been behaving lately, we think it has a chance to runup some. The technical looks good and there's a test coming up to see if it can break out of $19.50, which is around the closing price on its IPO day." Monday, Aug 27th.
Anyways, we'll see what today brings to it. We've already seen it bounce nicely off a smaller sell off Wednesday and we're basically back to where we started with EJ on DJIM. This has similar characteristics to WX and others we have played here, so if WX recent run and its pop off the early selling yesterday is any indication then BJ is hardly going to become a dead play in one day. Especially, if you consider its business and that the Shanghai composite closed at twice the level at which it started the year at.
GRMN, gapped but never saw that price again. As long as it stays steady and tech performs well, we will stick to it.
DRYS/EXM/TBSI...we'll just repeat yesterdays and 2 weeks worth of blab on them..."you can't ignore a strong sector"
MR LWAY CUB JASO ISRG -CRDC round out the top of the trading list going into the trading day.
LDK coming off highs is paying 1bln to FLR. This might take a positive spin today as a confirmation of those 500mln deals going through.