NDX..the market vs. DJIM

Since the MLK holiday, we have seen the NDX go from 1847 to a touch of 1771 today.   Despite this treacherous ride, the heavily followed DJIM stocks have shown not only resiliency but power to go forward.  This divergence with the market only escalated today with 7 DJIM names hitting a NCH and some even had higher highs intraday.  They include USAP CFF VNDA MTRX MBT VIP AMK.   If this was a public space we could probably find something to say on these tonight, but considering it's not...we won't bore you more and hopefully find you in a good mood following some of these recent moves.   If anything use tonight to read back the recent Journals, the alerts to see how this all came to be and the strategy involved in adding/subtracting these positions.   Also, if the market continues to slide, this divergence with DJIM stocks won't last forever and you should be prepared with an exit strategy.  A look over on the charts should help you create a line of support, every stock is different in respect to floats, volumes and should not be treated equally.  A CFF is not a VIP, a AMK is not a VNDA, so some need more flexibility than the other on your part.  The line of support could be a recent breakout price, to some it might be just leaving if the stock drops below the previous open, low or high.  It all depends on the individuals entry price, their time frame, how much they want to pocket etc.  Remember this is just the start of earning season and new opp's are coming up almost daily, so don't get a crush on a stock that turns on you or is lagging.  We've just started and a MTRX CCF USAP have already proved to be quality DJIM earning plays...there will be more!!. Anyways...just a few things

MTRX!!...finally!!...who came out with earning today, MTRX or BTJ?..lol.  Take away the gap in BTJ and MTRX was the better trade to add to today.  Guess BTJ EPS, the Oil spurt and MTRX getting to 17.30's area( see the 60min) all had the makings of the stars lining up for MTRX.  Considering, we've been complimenting this stocks strength through the massacre of the oils since its earnings...todays "interesting" point in alerts was a potential bust out in the making and a holder of MTRX should have been adding to their position once it was clear.  As far as BTJ, the earning is stellar and by sounds of it the growth is to continue in the next Q's...unfortunately the action was quite boring considering all the positives in this secl.  Our concentration turned to MTRX early and BTJ never really gave reason to add just yet.

The point of the alerts/ updates is to catch a potential move.  It could be the start of a hold or just a trade once in.  Lately..all the big moves have originated from that page...CFF USAP, VNDA and the Russian telcos, MBT,VIP yesterday.  The important thing to see in respect to these moves is in many of the moves buying on the next weakness has been very profitable.  So, it's not about the chase, wait for some confirmation, you need to see some momentum.    Also,  ROS, GLDN waited till today to get on MBT, VIP's back.

ENR, we added a bit today in the afternoon.  Prud added 6% to its eps estimate for '07 late in the day. Energizer beats by $0.20, beats on revs (ENR) 75.60 :Reports Q1 (Dec) earnings of $2.12 per share, $0.20 better than the Reuters Estimates consensus of $1.92; revenues rose 8.7% year/year to $959.2 mln vs the $921.4 mln consensus.  We've seen this bunny hop, so we're not worried about getting at these levels. 

CHDX,  just mentioned this one in the Journal last Tuesday as one to watch.  "CHDX, this one was in play a month or two ago and today it broke out apparently on good volume.   Keep an eye on this one for potential follow through or not, it's not the most consistent day to day performer".   Today, it had another big day. The question...can it do two positive days in a row without the usual give up.   We think this might be the start of some attention into ISRG's eps on Feb. 1st,  if ISRG continues to act as if a good report might be in the cards.

EBS,  hanging in nicely after a couple of big days.

Resiliency

There's really no need to talk about the overall market today.   Dow notched a new high and Naz followed with an impressive gain.    We are not going to delve into why and how of the overall market behaviour.    As a trader, you cannot battle against the overall market trend.   Rather, you can use the market sentiment to gauge the behaviour of individual stocks.    We couldn't help but noticing that across the DJIM land,  most if not all of the stocks on our watch list ended up in the green.   This is actually not rare considering how the market performed today.   What we find most encouraging is to see the resiliency of some of our stocks,they performed well on a good day like today but also just as well last few days when market wasn't as "hongy dorry"!     We have quite a few stocks making new 52 week highs and some making fresh break outs.    This is definitely a sign of a good market here, but we know this can change on a dime.  Here are some stocks that we thought are worth noting...

VIP MBT, incredible strength for the comrades the past 3 days..7 to 9 points on each.  The short term RSI is almost out of this world and we think this is unsustainable for a 4th day.  We sold most and will likely finish doing so early on tomorrow. These two charts are a great study on a breakout on earnings, the pull-back and then the higher high breakout we just witnessed.

AMK, volume has been a little slow last couple of days so the momentum is not as strong as we would liked.   The price action however, is pointing to the right direction and we are still sticking with our thesis for a pre earning runup.

CCF, we really like this one's steadiness and basically are not overplaying it.   

USAP, is holding steady after earning and is using the strength of the steels in holding these levels.

CCOI, the leading secs today were the internet related issues, couple this with a Lehman upgrade on another Clec and Merriman's bullish comments on the CLECS and CCOI  put the shelf offering from last night to the side.  See the chart for the possible break and/or resistance point.  As per our update/alert, we added and will take the chance this breaks out with some pop soon.

EBS, not a bad day for the other biotech in DJIM land introduced this weekend.  Volume speaks volumes today, you could say. Oh yeah and VNDA, just keeps inching higher..

HMIN, as if we are tired of seeing this play popping up on this journal. lol    This one again broke out today and closed at a triple high(intraday high, 52 week high and all time high).   This combination coupled with a good market and a strong base it's had usually indicates a very bullish trend.   But of course, we have been tricked by this one before so we will keep a close on it tomorrow for any sign of weakness.  One thing to watch out for is the China stocks doing offerings, it seems the price starts to bounce to old highs and then the news hits. Sneaky.

Bulls, Bears on a dime..

So the market pulled back and gave up pretty much all of the gains it had from yesterday.  It changed on that dime!   We didn't want to be Rah -Rah yesterday, we don't want to be Blah -Blah today.  The question we have is, did we give up all of our gains from yesterday?   Hardly!   Even if you are reckless on a day like today, you still wouldn't have that bad of a day, as long as you traded DJIM stocks.    The point is, don't get caught up with this battle of bulls and bears.   We really don't need to be concerned about the interest rates at this point.    We really don't want to be the casualties at the expense of the institutions' inability to making up their minds.    What we really mean is that since none of us have billions or even multi millions to trade, we should not trade as if we are the market movers and shakers.   They are the Bulls and Bears and we are the Mice coming out for chunks of cheese!.  As long as we stay selective and take profits more often than not, we should all stay intact in this volatility and make some money!  What we should be doing instead is to be smart and be alert, and keep an eye on what stocks are the casualties of the market weakness and what stocks are performing irrelevant of the market action.

Our conclusion for the last few days is that we HAVE TO stick to earning plays, and more recent the better.    If you look at all the DJIM stocks that were green today, most of those are the ones that just recently came out with strong earning report or the ones that came out with good reports today.     Yes, it may just be that simple but it takes lots of discipline to stick to the same winning strategy.  There are hundreds of reports coming out now with stocks beating estimates, raising guidance...we are trying to pick out the ones we think have potential even after a 10% move.   Many times, we are simply trying to challenge ourselves as a trader,  but more importantly, we should be challenging ourselves to stick to a winning trading strategy.    Here's the rundown..

USAP, despite the pullback, we thought today's a good day to add some to our positions.   From previous journals, we've noted that for a couple of days USAP has extended itself and pullback might be inevitable and today we got our wish.   In fact, if it's gonna pullback, we are glad that it pulled back today, as opposed to yesterday.   Why?   It's natural that an extended stock pulls back on a bad index day.   Volume is relatively light and action is reasonable.   We added some back.

CCF,  couple of days ago, we noted that CCF had a better setup than USAP.   It showed everyone that point today.  Market is down big and this stock held up really well and notched a new closing high.   Even though the gain is so tiny, but it's still impressive that it did on a day where the major indices took a tumble ..did we mention a new 52 week high? lol

EBS/VNDA, these two had similar action to USAP and their extended action just could not keep up when the indices getting trounced.  But, before they backed up nice new highs were reached especially on EBS to 17.75.  We are not in a rush to buy back but will wait until they stabilize before re-entering.  If you recall, we exited a portion of VNDA and then returned as recent highs of $30.30's were reached, at this point we alerted to buying back in.  This is similar to what we want from here.  We turned our attention to picking up some fresh EPS stocks instead.

HMIN, ok so the close was not as encouraging as expected.  You've heard that before and seen this stock at work ; lately, so this action is nothing new to any of us...good or bad market.  The intraday move is enough for anyone to make a point or more though.   Basically, we have learned our lessons way too many times with this one.   If there's gain, we'd take it.   Tomorrow is another and different day.  Pullback on this one is just way too common.

RESP VARI,  again some of you may have remembered us saying this phrase from before, "the actual earning report of a company is one thing, more importantly it's the reaction of an earning report is what we care the most"!   We like the action and we followed steps with many others.   Based on the reaction, we assume that there's plenty of ppl who liked their reports.    One thing we've learned from our early trading career is that we just can not disagree with the collective force of ppl, right or wrong.

TRCR, we are definitely putting this one back to the top of our trading list again.    So there's this visibility problem, right?   Well, the problem is that the visibility issue won't be a problem for us next few days or weeks.     We are sure that when the visibility issue comes into play come this summer Q2/Q3, we probably won't even remember what this company does anymore or this Q4.   Again, following the stock action here and we think this one will get its playing time for the next little while.  Yesterday,  we addressed this in the forum on a post regarding TRCR.   Basically the earning will give the stock a base, a new base and traders will play off it..its cheap and float is small.  The CEO also said this Q is a "quantum leap" for the company and Q2/Q3 is seasonally slower, so its about now!!.. The sell off yesterday was the briefingcom chasers, first chasing the juicy plug and then the CC follow up printed...really.. they don't really read..what this created was a possible 2 trades, one yesterday and another today for some nice change. Chances are better this comes to recent highs than the lows printed the last few days.

Again, the key for us is to follow the individual action, not the market action.   You may end up with a basket of funky names or wacky business' on your watchlist, but the bottom line is that they NEED to perform, and that's the only thing we all should care about.

DJIM stocks rockin' in January!

What have you done in the past 10 trading days?.    Well, we've been busy producing stocks with very nice gains in a very turbulent market for our subscribers.   Here are a few examples but definitely not all the recent plays captured.  The plays below are still in play at DJIM and are for our subscribers only, so we'll only call them "A B C D"!. 

January 23, 2007..DJIM JOURNAL..Since the MLK holiday, we have seen the NDX go from 1847 to a touch of 1771 today.   Despite this treacherous ride, the heavily followed DJIM stocks have shown not only resiliency but power to go forward.  This divergence with the market only escalated today with 7 DJIM names hitting a new closing high and some even had higher highs intraday..They include................"

STOCK "A",  a core holding for DJIM has produced a 19% move since being alerted to subscribers in the past 10 trading days!.....    ....DJIM JOURNAL...."we made it very clear on day one that we really like its ...Last night, we noted the line up might form in 9 ema area, today it did with a nice volume stick".  A SECONDARY LEG ALERT GIVES READERS ANOTHER CHANCE FOR an easy 10%+ move..a 2nd time on this stock in less than 2 weeks!

STOCK "B",  another core holding has produced a 18% move since being a DJIM buy alert.  ..DJIM JOURNAL follow up.. "This smells like a possibility of a fast move and volatility, so if you want to the chance of a 3-4 5pt move, stop procrastinating if the signs are there.... Why not start with a starter like we did below $** and then add as you see the momo come"..

STOCK "C and D",   Two stocks put on watch in our nightly Journal wrap last week and then alerted the next morning by 10am before huge moves...  DJIM JOURNAL  ..."incredible strength for the.... the past 3 days..7 to 9 points on each.  The short term RSI is almost out of this world " 

ALL THESE POTENTIAL MOVES and/ or BUYS of DJIM TRADERS are ALERTED BY EMAIL TO OUR READERS.  

DJIM #5 2007

Well, it's been a pretty decent earning week for us and opportunities were there to grab.    That is, if you didn't get distracted by the index action.    During the earning season,  it's rare for the market to pullback significantly since there are always funds/institutions waiting for their favourite stocks to report.   At the end of an earning season, however, things may be different as there aren't that many things to look forward to for another three months.   By then, interest rate talk, economic number and as well as the seasonality will be big factors dictating the market movement.  Still, there are small caps that periodically surprise with the timing of their releases, so it's almost earning season 12 months a year for us.     Well, that's how we've been viewing things.   

During the earning season, the only thing in our opinion that should be dominating your trade/watch list are the earning plays.    Basically keep an eye on those that have had good potential of releasing strong earning and keep a tag on those unfamiliar names that just reported strong earnings.   Pretty soon, your watchlist will expand from a couple of dozen to literally few dozen stocks.     Again, the point of having this kind of watchlist is to simply making trading decisions easy for you.   Basically, when you have a list full of strong earning stocks, it's just a matter of picking the ones with the best momentum, best charts, best float and best sector.   Fortunately, we are here to give everyone a heads up on what we think are the best so we can all be on the same page and trade the most out of those potential winners.

Here are some of the stocks of interest from past week....

HRBN, so why start off with this BB stock you ask?   Simply put, going toward the end of Friday, this one had the best momentum.    We alerted on the fact that it's going to be listed on Naz on Jan. 31th and given the quick glance of its fundamental and float, we thought it has a very good shot to make some good gains at $10.   Well, an hour later Briefing.com picked it up and we hope some of you have picked up in the low 10s.  We said the yahoo's could spread the story quickly, that's why we wanted to get this out to you first.    Volume on Friday is still a tiny 200k and given the fever Chinese stocks have been getting lately, we think this one is far from being discovered.   Float is 5 mill and co. is profitable for a few quarters in a row.    Not much else you can ask for.    We think it should get some more upside action before and after the Nasdaq listing.

USAP, buy the dips!   This strategy works the best with strong earning play.   If you missed the first run from 39 to 43, getting in at the low 40 is not a bad thing.   We added some on Thursday and now the stock looks better than before.    It showed that there's interest and support when the stock dips.  

CCF,  maybe this one doesn't have the kind of crazy momentum of some of the Chinese stocks but we just like the way it is.   The point is, this is the kind of stock where you don't have to check every single tick and knowing that it'll probably make new high sooner or later.

HMIN, we think this one is definitely getting more and more interest everyday.   The IBD profile we noted Friday before the bell sure helped the cause.  It's no longer a simple Chinese play anymore, it might be an Olympic play as well as IBD noted.    As long as the major trend line does not get violated, we'd buy some on the dips and sell some on strength.    If you have a fast trigger, you can definitely buy on a breakout and make a point or two that way.   This one is still very much in play.

TRCR, we think we have written enough on this one and we are keeping a very close eye on this one.   We'd like to add some in the low 6s but if it doesn't come down, we'd be just as happy adding some on strength.

VARI RESP VTRU ENR,  how we play these earning plays are simple.  We get a starter position in each one and add to the strongest one.   If one position lags, cut it lose and add the funds to the stronger ones.   This actually remind us of a race where you get to bet on all of the horses.  The only difference is that it's rare you lose on any horse since they are all winners to begin with.  Here, we are playing with more institutional money and sometimes the trend is easiest to pick up.  VTRU, besides the EPS number it is also a speculative takeover target, for you home gamers of the dating scene they are of the Lavalife site and others.  lol. $50 are the digits being thrown around.

NWK, this was a play on pre-announced earnings. Usually, they sell off once the numbers are publically released but for whatever reason this one keeps staying strong and the action just seems right.   We're set up here and looking to add more on a break.  It got painted down at the close and some sellers wanted to get out for the weekend, so we'll see what it does early tomorrow before proceeding further.

CCOI, our last alert on it said there were some favorable ramblings on the CLEC sec including TWTC.  TWTC had a very nice Friday and we are looking for more out of CCOI on TWTC heels.

ABM, is back in the picture. One look at the chart shows we could be looking at another test of the highs and a further break.

IPGP, this is looking better on the chart with a close over $26 and as posted by a member in the forum this company is starting to get recognized for its growth earning potential. This is the discovery we talked about...slowly happening.

Bascially in breaking down what we have is quite simple.  Our sector play in Aluminum, we have CENX that is up 5 pts since we touched on the subject on AA's earning.  We have USAP, as our steel play with earning.  So you want to keep an eye on the whole sec action with these.  On the cheap speculative trading side, we have a TRCR and HRBN.  There are new earning plays like RESP, VTRU, ENR to test out and hopefully see them become long term plays.  And there is the old reliable DJIM recycling program working with the HMIN, CCOI's of the trading world.

Just a note... the market is a complex dynamic with uncertainity at every turn.  What we do here is trade on emotion, mostly what our gut(s) is telling us might work or not and we react to it.   We trade when and what we feel gives us the best probability at a successful trade, we don't expect you to have this gut as for many of you its not your full time gig...so leave that to us and worry only about proper risk management of your money.  You don't have to be a rocket scientist to see which direction our selections go first,  if anything work on your timing so you can get the most out of a stock.

Big Day!

In our opinion, today is one of the biggest days if not the biggest day for us so far in 2007.    It was almost near perfect except for a couple of stocks but overall effect is very positive.    Index seemed to be going much more wild than most of the stocks on our watchlist but we think it's understandable given the cross currents of a lot of news out there.   Of course, what we care the most at the end are how some of the stocks in our portfolio are doing today.  We will proudly take this day considering there are many a guru and many a forums complaining about the market and the little opportunities for a good trade... A few things for tonight...

HRBN, big volume but a slight disappointing close.   Does that mean this play is completely over?   Far from it!  We think the volume today squarely put this one in the "in play" category.   So why did it not go up with this big volume you ask?   Simple, in terms of percentage, some early birds that supposed to have bought the "Naz Listing Leak" early may be cashing out and maybe some of you after an alert run from just over $10 to over $13 overnight.   We are going to be adding some on pull backs.   Keep in mind, this thing still trades on BB exchange and the market maker there may not be most friendly.   Hopefully when it gets onto the Naz Global Market, some institutions would step in and give it some orderly support. 

CCF,  boy things can turn quickly on this one.   The only disappointing thing is that this one has to shaken out on a day where most of the other DJIM stocks were having a very good day.    Nothing has changed on this one and the battle is close to the 9 ema.   Next couple of days will be the key to see which way it wants to lean.   At this point, we wouldn't be adding as the sell off volume seems a little more excessive and we'd give it a couple of days to show us which way WE ought to be leaning.  The earning did not change overnight, remember that!.  Don't forget how far this one has come in a short period of time and take these moves in stride.  Recently, we said 'she's a bouncin' and it went from 29 to 33's, so be patient.  There is plenty out there!

USAP, perhaps today is the day this stock is showing us that it should be the #1 holder in our portfolio.   One thing is for sure, this stock is definitely getting the kind of exposure CCF lacks.    Even though the trading can be just as volatile, but at least the support is there to push it back up.  We like this one and would add lightly on break outs and aggressively on pull backs.    By the way, when we say adding on a pullback does not necessarily mean we'd be adding on pull backs that have excessive volume that takes out meaningful moving averages, like CCF did today!.  Hopefully, the HMIN move Friday was fresh on your minds as you read the forum blurb on USAP this morning.

TRCR, it felt like it was just a matter of time.  That thought was just echoing behind our heads as we were just talking about it a couple of days ago.   Does today qualify as a breakout?  Hell yeah!  Did we add some on the breakout?  Absolutely.    We'll see how high the momentum takes this stock to. The volume was about 75K when we alerted to a watch for the $6.75/6.80, a 10minute volume chart shows the love it started to receive at those prices as we were hoping for.

MEND CHDX both of these broke out today but both didn't close near the high so we'll group them together.   Remember, CHDX is the volatile beast, so be careful with it.  MEND received a price tgt increase( see forum from premkt)

VTRU VE NWK HMIN ABM MFW ENR RESP ,  we have to say all these behaved quite well given the wild range we had today with the index.  This is a night we have to say the charts speak louder than anything we can say, so we will keeep it short.  There is a collage up of the big day players up in charts.

If you are spread out in a few of these names, hopefully you spread out your profit taking.  As much as we added here and there, we took some off as well in different names.

..Big day>>>Boring day

Yesterdays BIG day followed by a BORING day is just fine with us...We can live on the adrenaline rush of yesterday any day, but sometimes coming off such highs can be quite the ugly trip the next day.   We've seen it before where the gainers evaporate one by one the next day and this is why it's never a bad thing to take down some positions in size on days like yesterday and even today when it is quiet and you can sneak in a better sell.    The boring action from yesterdays runners didn't stop us from looking for the next new stock to trade.    We found a couple this morning in ALGN and TGX.   The first hour of the trading day,  we are not thinking what potential this has 48hrs from now or next week.   If we see potential for further gains today off a good earning report..we will jump on it with a starter position and add to it if the action gets better during the day.   You could've had yourself 5-10% on the ALGN and TGX off the alert time without ever having to add these to your book overnight.   Some make a nice living just chewing off these intraday trades day after day.   Of course,  it's not that simple as it's about discovery more than anything.  Being able to find the play is what it is all about, even if the stock has gapped 15-20% by the opening bell.   Too many are simply afraid to enter at those levels and sometimes never get the pull back they hoped for.  These are not the sexiest stocks but they will do for sloppy days like today,  especially if the action is right with volume.   

Align Tech beats by $0.14, beats on revs; issues upside Q1, Y07 guidance (ALGN) , Reports Q4 (Dec) loss of $0.01 per share, $0.14 better than the Reuters Estimates consensus of ($0.15); revenues rose 7.8% year/year to $55.2 mln vs the $54 mln consensus. Co issues upside guidance for Q1, sees EPS of $0.02-0.04 vs. -$0.05 consensus; sees Q1 revs of $56.8-59.8 mln vs. $54.75 mln consensus. Co issues upside guidance for FY07, sees EPS of $0.15-0.27 vs. -$0.01 consensus; sees FY07 revs of $240-255 mln vs. $238.37 mln consensus

Theragenics reports Q4 revs up 30% (TGX) .Co reports Q4 (Dec) EPS of $0.05, excluding a deferred tax asset valuation allowance, vs $(0.01) a year ago. Revenue rose 30% yr/yr to $14.8 mln. There are no analyst estimates. Co says "In many ways we have just completed our best year...and Q4 was our highest quarterly revenue ever...we delivered four consecutive profitable quarters in 2006, something we haven't done since 2002.".       

MFW,  this was the 'trade' in our book off yesterdays alert and buy in.   The action kicked off from the bell and it ran to a high of 33.69 off yesterdays $31+ afternoon prices.  These are the kind of trades you are most happy with!.  Ones where you believe in a stock from the extended level of $28,  our first buy here at DJIM..... to these days when you time a breakout almost perfectly.  Whodathunkit this still had 20% in it from that $28 buy in?.  We did and that's why its been on the chart board every day.

CENX CCOI , also part of the alert..We had nice days with CENX climbing to over $2+ at the highs and CCOI $1+.   If you've been long these,  you're happy.  If you day traded the alert...you're happy.  Actually, we're happy on both sides by adding to the move and selling some later without touching our longer term position in each.

Besides these early morning alerts,  it was quite boring.    But... boring is good when nothing falls apart after a big day.   Anyway, there were enough plays to keep us all busy today.

Fed Day

This is one of those days where we wish we were institutions rather than retail investors.  Not!   Up until the Fed decision, the market seemed like it was stuck in mud.   There was hardly any action and most of the entertainment was provided by the special guest on the NYSE trading floor.   We had to double up on the amount of coffee we drink just to get to the 2:15 p.m. mark.   Then it felt like there's a jolt of energy injected into the market and everything becomes alive again.   You don't think the guest of honor would address Wall Street and then have FOMC ruin the day?.      Let's just say the stars were lined up ...Bush...Bernanke and not accidently.

Speaking of jolt, the Chinese market was rocked the night before and it's definitely spilling over to all of the flavours here in North America.   The familiar ones we cover all suffered to one degree or another.    However, we see little correlation between the market over there and the Chinese stocks trade here as most of them only trade on North American market.   Still, we prefer to see a trend change here.  We'll see soon enough if this is mere a distraction and provide people here some opportunities to add to the strong ones.

TGX, this one had the best follow through from all of the stocks yesterday.   Sometimes you just simply have to be surprised by the kind of stocks that are performing in your portfolio.

VARI, this is one of the earning play that obviously enjoyed the Fed day more than the others.  Action speaks louder than words and we added during its strong performance today.

CHRW, this is a new one we are throwing into watchlist as this is the rare earning reaction for a big(relative) co.   Volume is huge and stock finished near the high.  Whatever the institution is seeing in this thing, we think there's going to be more to come.

CNS, we think this one is finally ready after excellent earnings to move forward.  We picked some up near of end of day

ABM MFW, these two DJIM's just keep serving up excellent days.

CCF is turning slowly...as we said... patience these earnings are not going away.

The market got a late day upgrade,  if we are to continue this longer term uptrend there is no better place we'd rather be than in strong EPS stocks. 

SWIR, we added a few times AH, the earnings are quite good and considering SWIR was just 15+ getting a position in the high $15.60-80's is a treat.  Maybe we should listen to the CC to find out why this didn't trade higher, but instead we'll let the action in the morning dictate what we do.  We think we might see a 5++mln volume day on these numbers, if that happens the share price will be quite higher intraday.

Reports Q4 (Dec) earnings of $0.09 per share, $0.02 better than the Reuters Estimates consensus of $0.07; revenues rose 81.8% year/year to $68.3 mln vs the $66.3 mln consensus. Co issues upside guidance for Q1, sees EPS of $0.12 vs. $0.08 consensus; sees Q1 revs of $82 mln vs. $65.83 mln consensus. Co states. "Based on strong bookings, we have solid visibility on Q1 2007 revenue. This guidance also includes a sizeable increase in operating expenses related to new product launches and major trade show activity expected

Post Fed Day

Normally, or many times in the past, the "Post Fed Day" has not always been kind to the market.   This time the market definitely had a change of heart.    When it comes to DJIM stocks, we actually had a much better afternoon than in the morning.   Many of the stocks we are familiar with just simply strengthened up toward the end and some of them had pretty good closing actually.   We'll pick out a few and highlight them...

CCF, perhaps this one is the most surprising one out of the bunch.   It was very ironic that only a couple of days ago that we were worried about its above volume sell off.   Again, we pointed out that we'd give it a couple of days to let it show us which way it wants to lean.   Volume today isn't spectacular but we think it has potential.   We added back some shrs today and no doubt also contributed to some of the rise today.   Nonetheless a new closing high is a new closing high.    What this does is that it actually puts this one back to our top watchlist and we'll again be adding aggressively.   The conclusion is, let the stock show you how strong it is before making up your mind of adding/chasing.   There's no need to be overly optimistic on "the best play" if the action seems uncertain.   If uncertainty occurs, reduce position and sit on the sideline with a little exposure.   Once the danger is over and the trend is clear, then jump back in.    Actually, this is more like the strategy for surviving in the jungle. lol   But in all honesty, trading the market is like surviving in the jungle.  There's really nobody else to look after you other than yourself.   Making kills (plays) just don't come easy when you got so much competition out there.

MFW, it's been up three days in a row now since our alerts on it Monday and of course the little alarm might tick off for a possible pause in this latest runup.    It doesn't mean that we have to go all out and sell it out.   Just be prepared for reversal and when it happens, don't be hesitant to reduce.  Recently after our initial buy in, MFW provided one quick trip down and that has turned out to be one of the best trades recently for us adding in the $26's.

SILC, ok so this one sat there for a couple of days and today broke out on pretty good volume.  There's not much to say other than the fact we added some toward the end.   Why at the end you ask?    If a breakout does not hold till the end, then it may be a fake one and we simply hate any kind of fake break outs.

HRBN, what to expect tomorrow?   Ummm, there's a chance it may follow through and start some momentum.   We are keeping our fingers crossed and if there's any sign of momentum picking up, we'd be adding aggressively.   We are watching it very closely.

TGX, time to let some go today.   We all had a chance after alert at $4, 20+% in 2 days is just too good to ignore.    We reduced most and looking to add on pullbacks.  BT noted in forum some technical analysis on it today.

A note on tech earnings on the Nasdaq, a definite theme has developed that started with AAPL, a few names early this week and then GOOG today.  You can put SWIR in this bunch of sell offs off excellent results.  Last night, we talked of the slows action in AH in the 15's and up only 10% on SWIR..."Maybe we should listen to the CC to find out why this didn't trade higher, but instead we'll let the action in the morning dictate what we do".  The action early showed SWIR had no chance and why.  Simply these techs are selling off the stellar earning news.   As we always say and said last night, wait for the market to dictate what you should do on a earning reaction.  If you do take a position early make sure its a starter, something you can rid of without much of a loss quickly.   At this point, we are carrying between 10-15 positions on any given day and blowing out a small starter position as in SWIR from AH is nothing when you have positive action in so many DJIM stocks.  Cut the laggards and those behaving badly.  If you are one to carry 2-3 positions at a time, you definitely should not be going large into earnings plays until the market shows you what it thinks.   It tells you pretty fast as with GOOG and SWIR last night and today.  We are looking at DLB's earning with all this in mind tomorrow despite how attractive it looked on paper first.

Other stocks showing strength, some more than others.. include ENR ABM GLDN VARI CNS OEH NWK FSYS ALB CENX TRCR ... so most of them are eps plays and all of them you've seen at DJIM over the past 5 months.

DJIM #6 2007

We thought we'd get this out today while we're all in a sober state before Sunday's game..

Now that we are in February,  we'll save you from listening more about USAP CCF MFW our core of big winners in January.  Well, maybe for a few days only!.   Nothing has changed since the last write ups, so glance back if needed.  Instead on Super Bowl weekend,  we'll discuss some new and some neglected DJIM names...

CNS, this asset management co' has taken over our money after the demise of GROW.  We've been in and out before recent earning and have been waiting for a signal to enter after EPS.  The day came on FED Wednesday (Journal) as it attacked the congestion in the low 48's seen after earning.  A quiet Thursday and then a nice move Friday.  We like, We like as a core hold.

ALGN a buy in alert low 16's off earning that knocked out estimates has playing ping pong between $16 and $17. We've never traded this before and are closely watching trying to figure it out.  As of Friday, we think there is a possibility of some action if it gets just a little bit higher. BT has confirmed this with a chart look as well.   If we don't get a move early in the week, we'll cut out if we don't see some momo established again.

AVZA an alert at the bell Friday that we soon bought into.  We're not so thrilled with techs but a turnaround is seen here with this profitable Q and guidance equal to this Q.   A nice pop from 5.50 to 6.50 before tailing off.  We traded some of AVZA and kept some to see if we can make it 4 for 4 on cheapies following on the footsteps of NWK, TRCR TXG!.  Basically, we are using the same strategy on all of these.  Best to see the latest on the TRCR, TXG's first days.

SILC, is an Israeli tech just small enough to avoid the institution rush to sell off after earning.  We are very familiar with SILC having traded it from the 6's and were in no hurray to pick up till Thursday buy in alert end of day.  This company is what you call a comeback story,  the founder brought in a top manager and marketing exec.. Yep..the stock was less than half a buck ...4 or 5 years ago with a market cap less than a million, now its probably over 100mln.  They reported a .20c Q/.49c on the year.  Maybe this becomes an IBD contender?.

T'N'T, talk about cheap thrills'!.... we have to group these cheap DJIM winners together.  First there was NWK we started in the 6's and alerted last Friday before this 10% week.......then there was TRCR and last week a spec buy in alert at $4 of TGX.  We noted Thursday on TGX and taking profits with a quick 20% in a week,  we did the same on TRCR again Friday which we started at $6'ish and alerted again to look for action in $6.70's last week.    We are looking at these day to day now with bigger pieces being sold.  There is nothing wrong on the fundamental side but we feel they are getting a bit extended short term.  A nice pullback or two, we wouldn't mind in a few of these after the 20-40% moves.

We got the cheap cornered,  but what we really like most is the classy ones to hold tight.  They are expensive in many a traders eyes as some just can't see past a under $10 stock.   We love these types.  We bought the starters in ENR at 83's, the VARI 52's, the VTRU $43's and have been adding along the way.   These have produced nice charts since entry and returns of 3-8% between them quietly.  We 've sold most of the VTRU the last few days after 4pts in 7/8 trading days but we'll look to buy back in if NASD internet names get some love.   If the market continues to go our way, we expect the institutions to want these types of companies on their books and that's why we consider them nice longer term hold potential.   RESP had the best start but now is lagging the bunch.

OEH , the lux lodging stocks have throwing up good numbers (HLT HOT), eventually this hits secondary names and one we started in again is OEH as revenues per available room look to be higher in '07.  If the institutions do their homework, they'll likely want to hold this one into earning this month.  Actually, this one has so much institutional interest(96%) already it might allow them to walk it up.  We are looking for this type of discovery here.  A slow and steady move into earning off these new highs.  If this 96% ownership is too much or the price is a little expensive have a look at..MHGC

MHGC trades under $20 and we started a position late Friday.  Think Super Bowl, think The Delano and then you'll see what MHGC is about.  The chart looks jus' fine and the 25mln float is jus' fine.

It's pretty easy to break up the trading stocks between those you want to hold over the longer term. We have the core which now includes CNS added to CCF USAP MFW,  the last 3 may need to rest here and there as January has been nice to them and us all.  The cheapies are to trade NWK TRCR TGX, you can throw in HRBN AVZA even ALGN till we see a trend or not.  Plus, we have the not so volatile more expensive names such as the ENR VARI VTRU VE.  There is a fave steel play USAP, a fave aluminum play CENX.  A fave oil play in the steady MTRX.. if you want to carry such, a fave Russian telco in GLDN, a potential lux lodging play in MHGC OEH.   Basically there is something for all types of traders/investors.   We're not throwing out the SWIR's out of sight, instead we'll be digging for these types that are not getting love off earning as potential plays in the very near future.

Need Direction...

Yes, that's how we feel about this market generally.   Naz has basically been stuck between 2400 and 2480 since last November and neither break outs nor breakdowns have yielded any significant results.    Ok, we at DJIM normally do not talk about the overall market trend much but we feel the current state of the market may explain some of the lackluster movers out there.   Will CSCO help out?, the numbers might be there but will the Naz use it to go for a ride?.   Maybe it was too much to burden AAPL and GOOG with;).   Sure, there are trading opportunities and some strong individual strong performers, but it'd definitely broaden the movement if the market is actually on a steady uptrend.    At this moment, we are still not committing most of our cash into work.    Right now, it doesn't feel as if we need to go all in in a big way, but rather, we are trading sporadic opportunities here and there.    As more good earning play come out, we are sure that we'd get more action but it'd be nice if this market gives us an excuse to go big and go all in.    We are definitely not there yet but we feel if a powerful move comes up, we'd be quick to get into the action quickly.   Early and most of the day an overall weaker bias but early gains in DJIM names provided an opportunity to take some gains,  primarily in CCF, MFW over $36.  CCF is just a little too jumpy right now, we'd like to see a close over $33 and away from the 9ema.

USAP, this one is definitely a hit so far.   The lack of volatility and strong action makes this one stands out from the rest of the earning play crowd.   We added some today on the 3 day breakout, but will watch the highs coming up carefully.

GLDN, this one pulled a typical sleepy move when nobody is watching but hopefully you were since Thursdays alert    This one sure took a while to get to this point.   But we can all agree that it's been a nice hold so far during the past couple of months.

VARI,  MLynch started coverage again with a buy rating and stock notched another new closing high here.   We favour these kind of plays here b/c of the institutional support and the liquidity it provides us.

AVZA/SILC, these cheapies didn't do much of anything today, but more importantly, they aren't giving back much either.   The longer they can hold and flatten out, the more likely the next movment will be up.  Only so far these techs will go without a little help from the big boyz.

CSCO who?

CSCO who?...Paulson who?....Bernanke who?....seemingly this is what the DJIM core and secondary holds kept saying all day.  Absolutely...no consideration or respect from DJIM stocks to the rest of the boring market or its talking players or what is coming AH's.  What could we possibly say tonight, except wow and laugh a bit.   The funny thing .. this is not first time we have seen this divergence between DJIM stocks and the weaker bias in the market.   If or better when the time comes that we come down to a few positions or go to mostly cash,  you will recall these days and ask what was I doing wrong?.  Basically, if you're not capitalizing on these moves it is a missed opportunity and you've simply been in the wrong stocks.   It's easy to blame the market instead of yourself!.   The interesting thing is these are not one day wonders,  these are for the most part continuation of moves in new DJIM stocks from 2007 and some late 2006.  

Let's take USAP and another new high attained today..it's only been wined and dined here from our first buy in high $36's....we don't expect all to make 30% so far in '07 on it,  but surely you have enjoyed more than your share of points on it...Why else are we all here?..Earning gems..NO?.   We're not here to wait on double bottoms, we prefer to toast a double shot of something at the end of the day after discovering a earning play early and hopefully sticking to it as it is discovered by your neighbour...and if you don't like neighbour there is nothing like selling it to him or her at the top!

Why do we keep an active chart list even when we sell most of a position...Example...VTRU

VTRU that we sold off most last week ( also an earning play from $43's)..simply, you take your points, your profits and watch list after...why?...so you let it consolidate a bit and then try to catch another move...WOW..we said it was looking better at low 47's in the Forum...minutes late this one really broke out and was nearing $49 end of day with volume.

CNS...little reaction after stellar earning but we held it on close watch looking for a turn.  It came last week and noted our buy in...4-5 pts since including another alert this week. You gotta love the last 4 day sticks on this stock!.

CCF MFW, we mentioned we were selling some of these off yesterday. Today was just an opportunity to rid of some more at higher prices or as in MFW case trade some.  After all was done, we probably came out with a bit more MFW than we had yesterday at the close.  We are not arguing with these going higher,  but we have to realistic especially in a market showing a weaker bias all day with stocks covered here from 27's (CCF) and MFW ($28). These are 20-30% moves just in 2007. 

Speaking of selling, GLDN hit the 57's today without noticing where its' trading..the flat NAZ!.  Besides the run from the high 30's here, this was alerted last week at $53  and yes we took some of the short term profits.  If you've kept track of this stock, you know this has been a great pick up on any pullback, especially to the 9ema.  We've kept enough to prove this is our favorite Russian telco stock.  Speaking of closely followed holds from last Q,  let's not forget the ABM making new highs..this is as steady as they come from $21's for DJIM readers.

Not to be out done, we had one (AVZA) from our bleachers, the cheap seats come through in a nice way.  If you didn't catch the first alert at the open the other day, hopefully you moved on Monday's.   Plenty of opp to add at $6ish to grab part of this move.  The volume wasn't spectacular but hopefully the NCH brings in some more money overnight.  SILC, TRCR just fine as well today.

Considering, DJIM stocks have done these runs in '07 without the NAZ's help,  we'll put our pom poms down tonight and let the CSCO cheerleaders pave the way..Let there be many!...The ones with AAPL and GOOG on their sweaters had little bounce in their cheer and definitely no kick!.  Some suggested reading in our archive as to the possibilities for tomorrow.  Same ole?.  We'll be cautious and take any bump for profits most likely.

http://djmarkets.squarespace.com/journal/2006/11/9/cscodisco.html

same recipe..new ingredients

Yes, we are  referring to our trading strategy at this moment.   Basically, during the earning season, what else are you going to play besides the earning plays?    The key for us here, is to recognize a good earning play right AFTER they announce the earning.  There are many beating, raising and the masses chase the gap and then churn all day like an IVAC in a .70 cent range...Boring!...  Here, we try to recognize more upside short term ...gap or no gap...same day or within days.   It's easy to get sucked in by a pretty EPS number, many did with IIG today at $23,24.  It's not that easy to recognize what will work, headline chasers get whipped and it only takes one bad entry to leave you marked and bruised!.   Of course, initial earning reaction within minutes may not be the best indicator and that's why we usually get in a small starter position right away in a selective one and monitor the progress of the action through out the day to determine the playability of a particular report.    Unless of course, we have this special "gut feeling" that the earning report is sooo good and we just have to buy it with a decent size no matter what.     As we all have experienced before, strong earning play don't last just a day.   If an earning report is very good, it sometimes takes days if not weeks to really sink into people's mind.    It means that there's plenty of time to buy even after the strong "gap up" reaction of a stellar earning report.    Also, believe us, not all institution can buy all of the shares off the earning report in one day.    Here are some new ingredients...and what was cooking!

MDCI, this one hit our radar in pre market but we had no clue how the street is going to react despite the fact we liked the report.   So, we get a starter position and wait.  This stock was alerted in the low $35 and it finished up about 3 bucks from that point on.  Of course, we added to that starter and hopefully you did too.  We have to say that the performance of the stock is definitely more impressive than the earning itself.    The split is also coming up so we think that's also an added factor as well going into the close.    The stock will trade on split adjusted basis on the 9th and we have been trading this one very aggressively today. MDCI reported .38 beating two estimates by .08, revenues 67mln vs 59mln.

EML, well, we got lucky and unlucky. The co' had a release the other day saying earning release was the 8th but then we got this early move to $24 and sold the majority of our alert from Monday.  Looks like one wire had the results, but most didn't till about 10:30.  Luckily, we were still watching the action and jumped on the surge still not really knowing what the heck was going on...but hey, you go with the flow!.  Something had to be up and it had to be good!.  How else do you explain the rush of volume into a quiet stock?.   If there's only one downside to the earning reaction is that it did not close nearly as good as MDCI.   Is this something to get worried?   Well, unless you feel their earning report will get reaudited down the road, we feel that there's absolutely nothing to be concerned about today's close.  In fact, it still closed pretty well and given the thinness of the stock, this one can climb up with some meaningful percentage in no time.   Again, valuation looks even more attractive with EML compared to CCF and we have a gut feeling that this one will trade better than CCF, less choppy that is.  This is just an example of a thinster being discovered, we like to think we did that last Q as these numbers were somewhat in the cards.;).   Don't forget why we got in Monday...Jefferies picked up 54k shares from the co'.  That was the look into the keyhole of EML and todays report..The Eastern Company reports Q4 EPS $0.96 vs $0.23 in 4Q05, revs +76% to $49.7 mln :"2006 was a very good year. We set records in Sales and Earnings and our backlogs have increased. Notwithstanding the positive impact of $19 million dollars of shipments toward fulfilling a military contract, the Company's "core" sales increased 10% for the year and 17% in the fourth quarter, the 17th consecutive quarter of improved year to year sales. We are optimistic that trend will continue into 2007... The military contract to deliver door latching components to be used in retro-fitting the up-armored military Humvees will continue into 2007.  These activities will be positive factors toward sustaining.  http://djmarkets.squarespace.com/journal/2006/10/2/eml.html

CGX, this one we did not alert but feel that it also came out with a very good report.  We think we had enough today and don't want our readers to get confused with 3 similar alerts.  There's something about these "expensive" stock that we like since they just tend to be less volatile than the "cheaper" stocks once they report a similar strong earning report.   We added this one to the top of our watch list also. We have seen this trade well off reports before and think it has some legs after this jump.

USAP/CNS, basically even the strongest stocks need to rest when they had such a good run-up since their report.   Just look at their chart, neither stock has closed below 9 ema ever since they came out with their report.   Things are still looking very much intact with these two but we feel we all should be paying more attention to the newer earning play.  Basically, we're still eating up the reports, it's just not same restaurant every day.  But considering these are two of our core plays this Q, we're surely to be back buying in size soon.

Watching MFW early tomorrow with a chance of adding..hunch

HXM has had a nice few days, CCOI had a very nice day

The bottom line is that nobody needs to be stuck on an out of favour play.   With the earning season, you are almost guaranteed that there'd be something new and fresh coming around the corner.   There's really no need to be afraid to play a new stock because no matter how unfamiliar you are with a company, the trading of that stock should always be familiar to you.    We are looking forward to tomorrow.

cheers, 

Resiliency continues...

We definitely had some resilient action going on today.   There's just not enough force to knock this market down, especially DJIM stocks.     In any case, we feel that a big market move is in the cards to get us out of this range bound trading environment.    At this point, it's almost pointless to speculate which way the market wants to go.   The only thing we can do is to be prepared one way or the other.   Fortunately the indecision of the market isn't deterring some movers from the small cap land.    Here are some few worth noting...

EML, what else are you gonna talk about first? lol    Again, this one followed through very nicely and we added some.    When it comes to an earning play like this one, it's very hard to say where the initial run-up will end and stop.    What we do know, however, is that the first pullback has to be bought aggressively.   How high can the initial run-up can go?   Your guess is as good as ours and we just have to take it day by day.

EDU HMIN,  in the case of EDU, yesterday in the forum we said around $40.50 this is being walked up to the offering price..Well..well,  the pricing for the secondary was announced tonight at $41.50/shr. For EDU, that's heck of a pricing.   We think the recent rise in price in conjunction with this pricing is the fact there's lots of institutional demand for this share offer.   This one is definitely interesting as 7 million shares at 40+ bucks isn't chump change for institutions.    Basically, we like this one again(what else is new), now that the cloud is lifted.    HMIN, simply broke out!   We bought this breakout as mentioned in the Forum after noting on it and we are looking for follow throughs.   Again, at this stage either take the points on moves and wait for a pullback or just stick through the tough days cause it just keeps going higher. You should know how it works by now.

VE,  this euro has been a nice steady performer from 68's and it's definitely not a small cap..lol. Tonight we noticed its been upgraded to a buy by Dresdner in Europe.  Looks like a $77 area target.  Analysts at Dresdner Kleinwort upgrade Veolia Environnement SA from "hold" to "buy." The target price has been raised from E48 to E60.  In a research note published this morning, the analysts mention that the company secured extra revenues of about €1.5 billion per annum from contract wins and acquisitions in 2006. Veolia Environnement is poised to increasingly benefit from its maturing contracts, the analysts believe. These contracts offer visibility into cash flows, which the company can reinvest to maintain above-average profit growth, Dresdner Kleinwort adds. Veolia Environnement has limited commodity exposure, the analysts add.

GLDN, talk about resiliency!!. Just incredible $4 dollar move from 9ema levels in one day.  If you're reading the Journal, Forum..looking at charts you are up to speed and probably making nice trades in this stock.  Believe it or not, this finished 4 cents off a NCH after yesterdays dismal day.  Will it bust out soon or will this become a visit to a potential wall?.  Give us a good Naz and this baby will go higher!

MFW, AVZA had nice days and finished right up there at the highs and we were adding to both along the way.

MDCI, last night we said the action was better than the earnings.  Today, we can only say the action was worse than the earning indicates.  A few things...yesterdays action, especially the close was probably toooo ' good and we probably should have exited the last 10 minutes when the stock had a final big stick up.   Unfortunately, the action by noon today showed we should leave for the time being.   Something might have been said at the CC after the close and for us it's always better to leave and ask questions later.  It also could have been a D grade, likely on valuation.  We don't care much for these as we've seen plenty of stocks shake these off quickly.  We think this one will, maybe as quickly as tomorrow on split day and we will aggressively buy back to add to our original starter.

CGX, we added today to this name as the action was much better than what you saw in MDCI.  An almost identical day to MDCI yesterday and today this one showed it might be the better of the two.

SSRX,  this one is actually a Chinese biotech IPO from yesterday.  Its debut action was not impressive but today's action felt much better.   This is a profitable co. as well and we bought a starter position in this one.  There are lots of IPO's the last few days, we're dipping here for a start around $16.

SYNL, thin stock seem to rule these days.   Earning came out and it didn't take much for this one to move.  We are keeping a close eye on this one to see if there's any follow through.  We have some thoughts on it in the Forum, we are looking for the angles (eth) here more than the earnings to play it in the future.

DJIM #7 2007

You can only describe last week as a re-run episode of the market and the goings on in DJIM land from last Q.  First, the market..we covered the CSCO part in yesterdays chart segment. Was friday action a surprise?.  Hardly, if you are reading the Journal and listened to what we might be doing when we said history might repeat itself.  The CSCO-NAZ swoon.  Some unfortunately might only look for a mention of their stock here in the Journal and quickly run through he rest.   Well, we can't tell you when to buy or sell, remember we're not your FA's.   All we can do is give our perspective into what and when we are buying and the strategies into selling a position or the market.. It is up to you what you do with the information.   For vet traders here with us this means diddly, they are here because like us, they like the early bird specials and share trading ideas in a common niche and can quickly trade out of a market downturn.   So when we say, " Some suggested reading in our archive as to the possibilities for tomorrow.  Same ole?.  We'll be cautious and take any bump for profits most likely".   Please give these future blurbs some thought and how they might be part of your strategy.  These were the last words following CSCO's report,  hopefully some of you started doing the same in stalled positions and were not bitten and surprised on Friday.  Even the experienced trader needs to be reminded of the past, we all can't remember everything related to this market and the stocks involved.  Still the damage was minimal to closely followed DJIM stocks and if you keep to selling the 9ema volumes breaks you could be in a nice position to buy a quality stock lower plus walk away with the majority of your recent profits. eg. CNS

If you're finding it more difficult to make a dollar in 07',  it is time you take out your successful trades and your bummer trades and look for an emerging pattern.  It might be harder for some in this market environment and therefore you need to figure out what you are doing and tweak it.  Try to figure out what you are doing differently??.  Is it the type of stocks you are playing?...Are the bums different than the champs in market cap etc.?.... do you make your best trades when you get in on day 1 but have bummer trades when you get on day 5?.  If you're fumbling around and can't understand it, send us an email with recent buys and sells/dates/prices..winners and losers.  It's pretty easy for others to see what you are doing wrong, things you don't see.

Now back to some familiar faces making a return to DJIM this Q..some much stronger than before!.  Stronger is not just a mean lean fighting' EPS machine, many times what simply makes it stronger now is the stock finally being discovered and getting some air time on trading sites/blogs.  The first two names definitely fall into this category..these are those DJIM crawlers that have a few extra legs now to move forward with hopefully a little more speed and interest.  We'll cover primarily the new blood from last week as some of the January winners consolidate after their big moves.

EML, well we've said enough about it and there is the past link to read from last Q on it.  As for trading EML, last week definitely provided some excitement.  First off there was the alert on Monday to the goings on with a institution getting on a chunk of stock.  A few of you are very glad you started a position that day as the surprise earning release was a hit.   If you have not traded a CCF type, EML might not be a stock for you get in Friday or tomorrow, maybe ever.  If you can't deal with the bid and ask spreads and put them into context of how thin this stock is..well then you shouldn't be dealing with it.   A buck move in EML up or down might be like a .25c cents in another!.  Trade what you are comfortable with!.  If you trade the under $10-15 stocks strictly this may not be your type of stock to trade.  Someone who flips 2 or 3 positions will find this to be the wrong flip.  If you need to flip this to get to the next flyer, you might be selling much lower than you should to get rid of your EML position.  Know your capabilities and if you're an investor,  consider purely the EPS strength and the potential for more excellent Q's based on it's business and do not get caught up in the daily action.  Look at what it's done since discovered here last Q in % return.

SYNL, we pointed out this is more than a current earning play. Like EML and the potential we pointed out for even better earning last Q, this one has the potential to put up better numbers because of its fire retardant product to be unleashed for fed regulations. There is also the ethanol angle here.  We won't get into these details as everyone should DD into anything they consider owning.  Just think of SYNL as a potentially laced eth mattress and the fun that could be!.lol. .We liked the action Friday following the initial reaction to day 1's earning and added.

TRT, here we go again!..lol. Incredibly, this is already our 3rd time getting in on TRT's earning. We pointed out early there might be still some overhang from the previous Q waiting to get out. There also might be curiosity out there if this can go higher after seemingly being blocked off in the past and so not a rush as before. The best way to approach this is take it slow and start with a starter and let the market dictate in the upcoming days if this has more potential.  This is what we did by getting a starter in 13.50's and will wait for $14 stability to possibly add. The sequential revenue ramp to over 14mln from 9+ is impressive but it is curious how they only produced .2c more in EPS sequentially.  If there is a negative..this is it as gross margins declined in part, but when you add the 3 Q's of EPS strength, this stock has some things going for it.

CGX, a mid week buy continued to look good Friday as it made another new high.  CXW, we added Friday off its recent earning report.  BOA gave it a buy Friday and a 67.50 tgt....yep the .50 must be some code to other big boyz..lol.

VARI, is definitely a helluva chart at work and is up 6% since DJIM's buy in.  Like CGX it was still ticking up and showing strength as the market weakened. These are the plays you want to be in on days like Friday, while backing away from anything breaking 9ema on extra volume or just stalled and lagging names like this.

AVZA, among the cheapies this one is showing tolerance to the markets negativity on techs.  This is trading like NWK recently showing resiliency to outside forces. Considering this is up nearly 20% from the last alert and even more since the earning bell alert the job is done..or is it?..Well , you're not going to discard a stock making a NCH ...but you are going to be extra safe not to blow the profits away next week.

If you're indecisive with what to do with some positions, best way to approach the week ahead is maybe think 9ema . We have many stocks making highs recently and this 9ema is where we look for some short term support to come in.  The dip buyers have been all over the market the past months, so this is one area on individual stocks that they would like to enter on.  You could possibly see this happening in the many end of day hammers in charts (MDCI).  If a DJIM closely followed falters here(9ema) on extra volume, it is time to let go as in CNS, which had a great run recently.  At the end,  letting go higher can give you great opp to make a fast trade in the same stock for a day or two like in GLDN by buying back low....recycle....will CNS be next?.  Chances are good as we can't see any news of substance, but we do want to see a reversal of some substance before getting in again.

There are plenty of earnings this week, so know when/if your stock is walking up to the guillotine...try not to follow