Reversal of fortune?

who cares, right now!......how 'bout just knocking some sense in again about protecting and building our own little fortunes as we start to experience this daily volatility thing.  This is old hat to the experienced traders, but this is something we all need to be reminded of at times.  Today a couple things came up on DJIM that makes this necessary.  One was early in MTRX.  We always say let the markets action dictate your move, the action, the volume will tell you what it thinks of earning / news and give you a clue as to what to do.  Sometimes its obvious and you might as well get your 'ball spikes on and join in the frenzy..aka FFHL type moves, other times 40k volume premarket as in MTRX will leave you holding your shorts on a white stick as you stand on the 'top' looking down at the action at 9:35am.  Do you want to be with the 1 million shares seemingly traded around 16.50's today or be amongst a few at high 17's, some 18's premkt.  It's lonely at the top!. We tried to throw caution in the morning note again, there is more than one buy opportunity after the exuberance dies off and it will come at a decent entry.  Be patient!.

Back to basics on MTRX, the numbers are very good but unfortunately come on day 2+ of the massacre on the oil patch.  Matrix Service Co beats by $0.13, beats on revs (MTRX) 15.10 :Reports Q2 (Nov) earnings of $0.31 per share, including options charges, $0.13 better than the Reuters Estimates consensus of $0.18; revenues rose 31.2% year/year to $166.4 mln vs the $138.4 mln consensus and raised revenue guidance by 10%.  The instit's hold over 90% and today they churned this at recent resistance.  We took a starter early and added a bit more at the close as it showed it could hold that resistance at least for today.  You might remember our intro of ABM pre market back in December. The first candlestick looks similar as MTRX today and we alerted the next day I think at 21.50 to our buy in and it rocked past that candlesticks top.  That ABM is also a big instit holding and maybe this will play out in a similar fashion.  We touched on ABM last night, everything still holds..but it just looks a bit better today at the close.

The other matter came up in the forum. Yes, we recycle stocks..but to recycle they need to lie in the bin for a while. We do not go buying the dips the next day or the day after.  Let the raccoons frolic in the bin.  We avoid the downturn in a stock by going somewhere else, sometimes its just into cash.  Yesterday we said the 'FXI' is the fix right now in dealing with our Asian DJIM's.  We got a nice run the past week and yesterday as the FXI turned,  we were locking in those gains.  If we put in the forum the FXI is at the gap open and it could get worse...we mean it and wouldn't be standing around at the gap open in a falling market like yesterday to see the gap potentially close.   So no ...we wouldn't be adding the MR, HMIN back today when the FXI has closed that gap pre market at $112.  This can't be a buy signal during the day if we are using this ETF as a measuring stick right now to our China Stocks.  We've had MR,EDU since September, recycling it over and over again but never the next day.   BIDU, is an exception as it trades with the internets and today that sector was not a bad place to find yourself.   Speaking of dips..GROW is swimming in it and we ain't jumping in on such a break of the 9ema.

What we always prefer to do is find something else, something else that is near a high, breaking a high or in the beginning of a reversal.  Something like a SYX or a HRT or more ABM or a new play that might catch on like MTRX.   Basically we trade the "GREEN' not the "RED" stocks. If you don't like GREEN and prefer Pink, Orange, maybe your trading platform will allow you to change the colors around. Whatever color you choose, it's best to trade the stocks with a + in front of them in our book.

ROS has been renamed the Russian Rocket...this is just funny and explains those huge lots on the bid we talked of recently. There's been one shakeout recently to low 40's, one might come again but in the meantime adding as this goes higher.

ZOLL is just ZOLL, a nice and quiet medical device stock that doesn't really care about much about the markets internals. Steady she goes...

Besides the highlighted stocks above, we are trading some AMK on the speculative side of things today.

The funny thing we kept mumbling yesterday is its Jan 3rd,2007, who the hell cares about the December 12th, 2006 FOMC minutes.  But it doesn't matter how silly we thought the Times Square NYEve Ball drop was...the only thing that mattered was what the market thought.  It's all reaction..action and we just play along with it....yesterday on the sell side...today on the buy side.

EPS kick off..

Tomorrow it's kick off time with the first reports coming to the forefront to give this wishy- washy market a direction..maybe!.  We couldn't think of a better time as many of the movers and shakers we've covered over the past few months are still in the 'hub' and waiting for the next flight plan.  Well...this can be quite excruciating waiting for the next move after being accustomed to very nice gains, so the best thing is to get some new fresh plays on the table!.  You just can't wait or expect on the ZOLL's, ATNI's to kick it up with the same feverish tempo we are accustomed to ...the easy money has been made, the easy play we are after at DJIM is over with so many of these names and it is time for the next round.   Tomorrow is the kick off!.   We hope it doesn't include a Romo Cowboy bobble move!.   Is this what all of us have been trying to push back, the inevitable fact that corporate profits will be not be as strong.   Maybe, but we are not going to worry about it as we still expect there to be plenty of nice surprises in small cap land to jump on.   What we are trying to do and will continue (especially in a 'quiet period), as in the first 4 days of trading in '07 is look for potential opportunities to capture a short term move if need be to cure the boring action.  Profits are Profits..pretty or not!    Maybe these 1 or 2 day moves won't get us the DJIM benchmark of finding a 25% move, but we will gladly settle for a 5-10-15% easy play in a day or two.   The same DJIM principles apply, stick a name we throw on watch and see if receives a little love!.   We are not getting into scalping or the very speculative cheap issues, but ones that have tracks of past moves that can be replicated.   We think we know what the fellow trader likes.   An example is BRLC, which we covered a bit in late '06, many of its past moves all stem from what their darling Murray analyst says...He loves to give nice price targets and did it again Friday, the stock always reacts positively and beyond what is normal for such wisdom of increasing a price target.   Understanding the psyche of the trader lets you in the door, if you think with a little street smarts..you can get in the door first.   Anyways..for those with other gigs, this is our responsibility not yours to find these plays or think like the other players.  The first and probably hardest think to do is find a stock, a stock with some features you know will get a trade.   NWK was one that had what many like.  First, it quietly pre-announced a very good Q revenue based and upped the years growth to 17-20% from 10%.   Well, we know what we would do if this was a EPS report, we'd jump on it if it included a similar EPS growth prospect.   We also know these don't last a day, so we thought a second day follow through might happen and it did very nicely on what looks like a volume high day.   Everybody likes a stock under $10, this was the other factor in thinking this had more space to run.  These stocks are not what we look for in a long term DJIM relationship, it's simply a date and one you got lucky on! 

If that is not your game and it really isn't ours, there are a some recent mentions on the Journal that acted well today with a few making NCH's today to look at again...

GRC, a strong EPS co' talked about last night put in a nice day adding 4.5%.

AMK, 3mln float with nice EPS closed up almost 7% and a NCH.  A perfect example of getting a nice price the last few days if you were following it since our mention.

MTRX got some CNBC spin this morning and seems to have survived the oil massacre in one piece. This was risky getting in at earning with all that was going on, but it stayed in its range since and now just needs a nice close over $17 to maybe continue on. The huge institutional interest in this name make you play on their time.. a little patience is probably needed here.  It would be nice to have something other than ALY, BTJ to kick around.

MFW, we took a position in this holding co' that recently spent some pocket change, 1.7bln for an acquisition and it took off. Incredibly, this looks like it might not be finished as it broke out today to new highs.

A few names to do some DD on for tomorrow..ANGN, a stock we first picked up at $4 reported prelim numbers that look pretty good. OSIR got some FDA news AH and is sitting just off highs, this one can move if this is not priced in.

A-Team wins the coin toss!

Kick off time came a little early today with AAPL giving what many hoped for at the show!.  You couldn't read a piece of press without the question on everybody''s mind...What will AAPL do?. The anticipation was there and the traders were waiting for the news.  Nothing like a little spark to the techs that need to lead this market.  You can't live on Tires and Rubbers being the leaders as in the past sessions much longer.  Mr. Jobs you may now call it Apple Ltd,  Apple Inc. or Banana anything as long as you keep throwing the toys out.  We talk a lot about momentum here, nearly 120 million shares is definitely it.  UBS lifted the tech sector yesterday and AAPL lifted it today.  Let's hope we can get some conviction in buying techs.

We've heard ramblings from analysts that aluminum might be somewhere to go in 2007, so maybe it's no big surprise the official EPS kick off went all swell with Alcoa giving a shiny picture AH.  The stock is up nearly 5% AH.  Nothing like a look in the past and getting some ERS dusted off, maybe some CENX too for tomorrow.   Always look for something that can piggyback an Alcoa type play, the secondary plays are often more fruitful.  Same goes for those that will feed off the AAPL endeavor..you didn't have to look far as a reader tossed out a play out of our backyard in SNCR on the Forum.  Last look before calling it a day, SNCR was trading at $15, now it sits in the 15.60's. 

Last night,  we discussed the need for new stocks, new plays!.  If anything these events give out a few secondary plays that should get some traders interested.  Still, today was not without a few other things working off DJIM notes that provided some nice opportunities.

VOL, which we introduced on our last forum has come back with vengeance today.  It beat estimates handily and we started to trade this off the pullback around $41 as soon as it looked like it would hold its morning gains.  Soon after our mention it broke the days high over 42 and added a few points more into the close.  This is a volatile play but when it gets momo it can give you a helluva a ride.

OPTM, mentioned pre market caught the usual wind and from just over $25 hit a high of $26.60's, hey if Cramer gives you 5% take it and say see you next time.  One good thing about OPTM is most of you have played it here and should have a better feel for it.  Its not that big of a surprise it gave it all up by end of day.  Not so good to finish at low of day for any stock, but this one is quite the choppy trader so it just might have legs again very soon.   Off this ' triple play' business, we alerted another at $25 that has been talked as a triple play threat, even if its robotics/lasers are used elsewhere mostly..... IPGP a recent IPO that has held steady after gapping on IPO day and now by the end of day looks even better on the charts.

OSIR,  the FDA play from last night to watch. We picked some up again as it looked to finish near the high. Maybe it has a another day in it or two.

So there are plenty of new holds tonight..AAPL,IPGP,SNCR,VOL,OSIR

AMK which almost kissed $20 after being in the low 17's a few days back and MFW which had an incredible snap back today show that quality companies trading well can do some fancy dancin'. Most importantly, how irrelevant it is to know exactly what prices we enter these or any stock at.   We give you a stock to watch for a potential trade, some move soon, some don't...some you just better keep around so you can catch a move like MFW did the next day for 3 points today.  In both of these stocks readers could've had better prices than the prices we got for our first bite!.   Don't concern yourselves about exact prices of our entries on stocks, just make sure you're making money....hopefully on the same stocks we share with you.

VOL,VOLT INFO SCI at $51, IPGP, IPGP Photonics Corp. at $25, NWK, Network Equipment Technolgies Inc, at $6.80

What has DJIM been up to so far in 2007?.  Same as 2006, we are rolling along!.  Here are some of the plays recently enjoyed by members, but it is not all!.  Of course, many new plays happening are for our members eyes only.  Our FORUM is kicking with participation from other traders giving heads up to potential moves intraday...Our ALERTS/Updates are cranking, our nightly CHART analysis updates on closely followed DJIM stocks are giving our readers another way to look at a potential trade, entry and/or exit for the next day and beyond.

DJIM ALERTS, VOL- ''....Trading a little VOL here'....' was part of an alert 3 pack inc. AAPL to DJIM members at $51. STOCK RUNS to 64 by 3rd day!

Nightly Journal   VOL-"This  is a volatile play but when it gets momo it can give you a helluva a ride".  January 9th....."Again, have you forgotten to take some profit today?   Strong move this one exhibited always pauses quicker than you can blink", January 10th after 2 days of run...VOL, this one probably overwhelmed the most optimistic traders given its 3 day action.   Again, we are not saying today is the end of this run-ups but it does feel a little tired at this point ...and walk away with another 3-4pts today on the full lot you played.  This is what we did reducing our exposure and now are in a wait and see mode with a very slim position, January 11th after day 3.  DAY 4, the drop from $64 to 53's. !!

IPGP-   January 9, 2007 at 01:29PM  $25 in DJIM alerts,  recent ipo, accumulating some for sunnier days . Lasers, triple play broadband angle following OPTM today idea...even if is not the majority of business" ..........FORUM section..."IPGP has held ground at IPO day prices and this 'triple play' broadband hype is creeping into some names. IPGP might get some of that attention. rather accumulate some before"..before a breakout!.    STOCK breakout and runs over 10% from 24.90's  to 27.96 the next day. A 3 pt move in a day and half.

Forum, Cramer liked it at IPO time....IPG Photonics (IPGP:Nasdaq), pull the trigger. Buy your first tranche. This is a laser company that could work here because it is industrial with growth, and that's awfully hard to find. I was thinking that this stock could open at $24 and then trade down from here, but I don't know how much it can go down. I'd bet this stock will get a lot of focus as a replacement for a Parker Hannifin or an Eaton or even an Illinois Took Works, because people want growth badly and they want it in the factory.   We like this stock at DJIM and the growth story it represents.  An undiscovered stock so far that got some attention last week on the breakout.

NWK- Monday, January 8, 2007 at 09:46AM in DJIM alerts

Put this on your watch for a potential trade, raised revenue guidance for this Q and year Friday. Its a tech with about 70%instit. but has a nice chart.  6.80's     Journal     NWK was one that had what many like.  First, it quietly pre-announced a very good Q revenue based and upped the years growth to 17-20% from 10%.   Well, we know what we would do if this was a EPS report, we'd jump on it if it included a similar EPS growth prospect.   We also know these don't last a day, so we thought a second day follow through might happen and it did very nicely on what looks like a volume high day.   Everybody likes a stock under $10, this was the other factor in thinking this had more space to run.  These stocks are not what we look for in a long term DJIM relationship, it's simply a date and one you got lucky on! 

NVX climbed  to $7.50's as a short term trade idea, those that have held beyond, $7.80's has been in the cards and another 10%+ trade.

DJIM #3, 2007

For investors the best thing about a 3 day weekend is it gives an extra day for M&A activity to kick in. This weekend surely is not disappointing in this department as lots of activity is coinciding with the markets playing with highs.   Hopefully, this gets us off on the right foot into a shortened,  but what we expect to be a busy week.   The flurry of earnings will hit us this week and hopefully we can hit back hard by buying into DJIM type earnings winners.   This is the time we/you might want to reduce sizes of holdings or get rid of stocks completely stuck in the  'hub' with no immediate flight plan.   It is best to have cash ready and not be forced to sell things off to get in on a play early.   There is always more than one opportunity to get in on a DJIM stock, but sometimes the first is just an easy gift you can close early and then look for another entry..examples might be like a SNCR move last week but one with earning or an explosive VOL off earning.    Also...don't forget to look for earning dates of your stocks!.  We have enough on hands here in Canada following US holidays, so help us out on DJIM stocks...we knew EDU had earnings Tuesday,  but we didn't know we had a holiday today till about 11 am on Friday..lol. We almost broke our 'no holding rule' into earning with EDU!.

Heading into Tuesday,  these are our top hold/ hit lists plays at this time in no order..

CCF-  Chase Corp is one of those small float (2.3mln float) Amex stocks that hides with pretty darn good earnings.   Friday it reported its profit doubled on a 26% revenue increase.  This .62c Q follows last Q's .69 on similar revenue.  We also like Fidelity owning about 50% on the the instit. shares( 400k).  If they want more, they can get ours now in the $30's!

OSIR- made a nice comeback late in the day Friday.  It seems this one besides the FDA news last week is starting to be looked at as a stem cell stock of sorts.  This explains the volatility the last 2 trading days, Osiris is also developing stem cell treatments for cancer and heart disease.  A new NCH has us looking for more in this name, but now we are looking for more volatility that made us run out of it, Thursday.   Easier to deal with volatility if you know why its there, we didn't Thursday.

CCOI- just a steady follow up Friday from its big day the day before. A NCH and a stock that is up 4.5 points in the New Year so far, almost 30% and is sure to be picked up by more eyes, but it also should consolidate sooner than later.  So be careful jumping in!.  Some of you are getting in a tad late on some plays and expect miracles too fast!.

ABM- we are satisfied with this steady performer.  A NCH to end the week, don't forget we have been on this since $21 and the big push the second day after earning.  This is heavy on institutional support,  so this pace is not unexpected.

MR,  is back in the picture... we like the move Friday and the fact it held it by the close.  We added some near the finish and think this one might be one of the better plays to start week as it has climbed nicely above its 9ema.   It could be just MR, it could also be EDU following earnings and HMIN might not be far off ( we would like to see 40+ before really taking another stab at it).  FFHL should get some play but there is that supply of ones wanting to get out overhead to consider.

AMK, might be the other top play heading into the week.  This is a small float with a nice earning story that is reporting early February.  It just looks like a typical 9ema play at this point heading into earnings.  Wish it just take out Ceramics from its name from its name!.  Can't help but think pots when you first come across it!

INFY, we like it for its EPS, its business and where its at (India).  A few targets in 60's already out following EPS. This might be a nice longer term hold.

CENX,  a play we noted off AA earning is doing well but might want a rest in the 43's. It opened just below $40 on Wednesday following AA's eps.  Again, if you want a nice aluminum stock to hold for the AA story, this is it for the longer term.

MFW,  looks to be one to pick up more of on the dips. At this point as it has some interesting intraday moves and sits close to a high.

SNCR,  seems panic has set in with some, yet its only finished day 3 off news and is only 6% or so off highs. There is two camps here,  one that was getting in $15's Tuesday AH  and then early Wednesday and the second camp that was procrastinating and moving in mid $16's and higher.  Basically first camp has been distributing and the second camp just needs to be patient through it.   If you don't believe in the story then just move on.

VOL,  momentum begets momentum and that is what happened to the upside...and to the downside.  It works both ways, kids. If you've never seen it before, you just passed MOMO 101 last week...hopefully in one piece.  Violent sell offs are nothing new in something that goes up so fast.   Now we turn to giving this a look around the 9ema area.   At this point its only a look, we like to see a reversal begin before considering a entry.

MTRX, MTRX, MTRX one fine oily day it will move.

Some notes on other stocks in Alert/Update page. 

Woodshed?

We won't go into macro stuff and evaluate the man's words.   We've never been about that and won't start today.  Better to maybe understand what you might have done wrong and why you didn't do something else, so you and your stock avoid a visit to the woodshed again.  The headlines hit around 10am and everything started to slide on the Nasdaq.  Bernanke squealed long and hard and Bartiromo, the Disco Queen wasn't pushing his buttons this time.  The excerpts, headlines ran like a riot act.  You could wait and see how it plays it out or you can start selling.  Last night, we mentioned sooner than later the market always catches up to something you hold that you think is invincible,  it could be a breakout while the market slides like HMIN yesterday or it could be like today where they start falling one by one as the day progresses.  We don't wait till someone taps us on the shoulder with a big sell order to set off our hold downwards.   We were quite hesitant in last nights Journal on our usual plays, probably got lucky to be pretty thin this morning, yet even if we were heavy into some names....we would have been doing the same and that is sell down fast to avoid any possibility of a bloodbath.   This means not only plays that are seeing red but ones that are green as it could only be a matter of time before the green is the next red.   What we remind ourselves is this is really week one of earnings and there will be new plays to use up the cash we are mostly sitting in now.   In the meantime... with care we look for a new play during the day.  USAP, mentioned last Q a few times on DJIM, produced another big Q and we took a small position.   MEND took a second stab at $22 this week and this time succeeded with a push to $23.   Nothing too exciting but not everything is a HOKU..lol.    So, if a visit to the woodshed was had,  it's probably because some greed played a part in your not taking profits recently, maybe as recently as this morning as the tide turned quick.  Nothing like a look back at a chart now and seeing that resistance that was right in your face you pretended was not there the last few days or the support you thought would hold because .....well, because you own the stock and it just can't break!....  Ah love! .   Stay light, stay small is what we're sticking to at the moment.   Maybe there will be a Friday morning EPS special to put some cash to work,  it's definitely not going IBM's way....If you got nicked, its best its only January 18th..plenty of time to turn it around!

DJIM #4, 2007

We can't block out all the noise, all the negative noise hitting the wires, the bobble heads on CNBC as its venom is in front of you on your screens...the abundance of red, 3 out of 4 days!.  But it is possible to turn off the excess, the actual stuff making the noise...click..it's off!!.   If you want to dwell on the macro, we can refer you to 1000 places that will discuss the possibilities till they and you are blue in the face.   It is so easy to get involved in the hype, even if it is reality in many respects and get a tad depressed and sit on your hands.    You could fall into this trap and sit ideal or you can jump a bubbly, new opportunity to make some mo'.    DJIM is ' stock picking',  it is not to evaluate a macro situation and decide to take a position in a stock that could be affected by the goings on 3 months from today and make you 10% down the road...Why should we wait 3 months, a year for a 10% gain when the possibility to make that much in a day or two is granted almost every day....This is especially true during earnings season!....No matter what the 'big boys'..INTC, IBM's are telling for the future....Small caps for the most part are only telling you what they did for the past 3 months with no outlook.  This gives us all of us an opportunity to collect points, here and now on the PAST..in most cases it's easy money as it tends to bring in momentum and an excellent trading environment.   But if you're shacked away, clinging to stocks stuck at the 'hub' with no immediate flight plan...well, then you are also missing opportunity after opportunity if you do not have excess cash to use.    Procrastination... is something best left in bed or on the potty in the morning,  if you're going to trade successfully.   The ability to differentiate between stocks and understanding what has the most potential to move out of the gate the fastest is so important in our and your success.   You have seen what momo can do recently...good and bad as in VOL.   If you do not recognize momo and jump in day 1 or 2 and procrastinate till day 4, you are left at the summit.  Bet there are more waiting for a move from these prices than ones who got in the first move of a max. of 12-13 points from DJIM time on it.   Basically, those admired the move from a distance so much that they think it can be replicated once they're ready days later.    Why let it slip through your fingers the first time and be left hoping for sloppy seconds!.  To a lesser extend, this holds true for a USAP and it's potential following earning last week.  Like CENX (if you want some aluminum in your diet),  if you want a steel play with a connection to Boeing etc there is not a better longer term hold in this sector.  They are a little volatile but also give a better bang for the buck.  Again, we are not here to make predictions on commodities or anything else...so we are here with the flow.  Right now, its a little positive.

USAP, you saw this stock here before most likely.  It had stellar earnings last Q and this Q beat all expectations handily even if you take the nickel pricing that added about 10c to the EPS.  The 97c was 80% growth and guidance is nothing to sneeze at either.  How to differentiate a stock and its potential for a fast move.  Compare a stock like VE with a 200mln float and USAP with a tidy 4.2mln and 80% instit ownership.  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...VOLUME is always one... Why not start with a starter like we did below $37 and then add as you see the momo come.   So, if you watched like many watched VOL, Monday might not be the best time to enter but on the other hand you might want to take advantage of the profit taking end of day and price decrease as a new start.   Again, we are not here to figure out and suggest if a pullback is sufficient for you to enter...our gig is to introduce you to a potential move and in this case tell you our entry.   Now is where you might want to use charts in your decision process.  Of course, we took some points off the table during the nice run, we all should heading into a weekend with a fast gift when its given.  There is nothing not to like here,  but it does not mean you don't take the points.  You're in the market to make money and nothing else.   We will follow closely to take back a full position.

VNDA, here was another opportunity in a stock we know from our own experience the power it can generate.  We know its bloodline, we know this can be that thoroughbred sprinter.  The history of a stock is simply the chart, so if you missed the DJIM run before... a quick glance at the chart and the previous 2 moves should have made you to put this on top of your trading list to watch after our mention of the funny biz in the 350k lot at highs(Wednesday), the snap back action to highs Thursday was another clue to something fishy, yet smelling good.    An offering at the highs of a stock is always positive, it is not the offering with no price that we are seeing from MR and EDU that make the investor apprehensive or even scared that it will be quite lower and also cause dilution.  In a up and coming biotech with at least 2 promising drugs,  dilution is the last thing on anyone's mind.  VNDA will have to partner with a major as they said again Friday, we feel  this should continue to keep the stock steady in anticipation of the inevitable event of a hook up with a major.   What has always been impressive about VNDA is its ability to hold gains after the initial big run.  The finish was strong as it pressed the days highs. We noted our intraday sell and the potential to pick it up back with a break of the days high.  We ran out of minutes to see if this occurs on Friday and will take it minute by minute Monday to see if we add back what we sold.  Remember, we fear the 'negative' news that might come overnight in a biotech,  so use caution and only sleep with what won't break you.  Look at it this way, you could have played VNDA 3-5 days so far and slept fine in between the big days.

What else for the week ahead?.

9EMA..you can make a list off the charts posted of the stocks below this short term support line.  Starting with the Chinese stocks like EDU MR and others like DLB and know what we have no interest in now.  No need to list them all.  Then look at those stepping above this point like the Russian telcos ROS VIP MBT to put back on your potential trading list. Just watchin now more closely.

OIL, really hate to turn to ALY, BTJ if need be, but they do still offer nice trade potential.  MTRX has been incredible through the massacre and considering we have held some through, we'd definitely like to see it move with any sector move.  This is the safer bet and one you can hold through the night.

ATNI was one of those HUB stocks as it did nothing but wait for a flight plan after the initial  BIG run!. It got grounded!. We discussed these tired plays may be a waste of cash at their recent high levels.  Well,  ATNI finally collapsed late last week, but might be a buy opportunity again at 50 day.  More than any other reason is ATNI made it to 2 publications as a 'top' small cap (motley and street.com), Friday.  Just a hunch, if the market is good.

MFW AMK MEND, 3 buys we have listed here on the Journal in 2007, have been steady performers yet do provide some swings and dips to buy before continuing back to highs.  We continue to hold small.. adding/subtracting as we go along depending on the trend.  Trying to catch a bigger move here.  CCOI is another that seems to have staying power, best to look at it again if it comes to highs as 9ema area is still a possibility here.    CCF, a one dollar move in a stock like this is .20 cents on another, so take that into consideration when dealing with thinsters and be prepared to stick it out if you buy these types.  The earnings are not going away, even though the buyers are not lining up last week.  Maybe a few will at the 9ema area.

VE, moved a $1 after our alert on a hunch it might move because of news relating the Suez. Seeing the float, you know this won't be a quick mover. If the news is not substantial and doesn't put the stock in a uptrend soon, we will release that starter position.  A break of $70 is what we would like to see, if it doesn't come soon...we'll say good-bye.

EBS, introducing this IPO to consider for a potential trade tomorrow or one to keep on radar for future events.  This is a recent IPO that is profitable for a biotech, it provides an anthrax vaccine contract for the stockpile .   It moved late Friday and we want to see if there's any follow through or any news.  The OS is 80% is controlled by one big head in the company.  There is not much left for you and us, so there is potential for more moves.  We could be at the beginning of a move, or we could be at the end of a short one.  If we take a starter position early and it turns against us, we won't let it go too far in the red before selling.   

Look at IPGP, as an example of what could be a 2 day run and the potential to get in too late as some did here in the 27's,  instead of buying the 25's and the potential break we spoke of before and after it started to move.

What can we learn from today?..

Basically, on a day like today, we have to identify clearly what's working and what's not working.    So lets start with what's working.    The two domestic stocks that stand out the most are the two that just reported great earnings.  Of course, we are referring to CCF and USAP.   In our opinion those two had the best earning report, so far in the earning season, among the small caps.   But then again, the earning season for small caps stretches a couple of months and we are pretty much still at the beginning of it.    So the point is that it still all comes down to earnings.   Plays that are great earning driven would have a much better chance to withstand the kind of market today.   Sometimes, as it's prove, they would even go as far as going the opposite direction of this market and shine.     So what else is working today?  DJIM Foreign stocks!    Yup, that's right, and we don't even have to point them out.     So what's not working then?   Just about everything else.     The market was quite the red, but if you have a screen of DJIM stocks...it was pretty green today.   What's good about today's action is that it's very easy and obvious to pick the good ones from the bad ones.    When you can easily identify the winning stocks, then you can choose the setup that you are most comfortable with, or perhaps the safest setup to enter for a trade or two.     Let's go over a few stocks here...

CCF,  we made it very clear on day one that we really like its earning report.  In fact, we think the combination of its earning and its market cap gives this play a valuation mismatch.    Of course, we think it should be worth a lot more than what's currently trading at.    Since we don't have a crystal ball, we still can not just rely and act on our beliefs alone but rather we have to focus more on the action.   The action of a stock behaviour has to confirm our belief before we can truly comfortably act it out the way we wanted.    Once we have identified such play, then it's up to your trading instinct to make the best out of it.    In this case, it's clear that we all should be adding last couple of days.    Last night, we noted the line up might form in 9 ema area, today it did with a nice volume stick.   With 2.33 million in float, we think it doesn't take many 80k to 90k volume "up" day to give this one a reasonable valuation.   The trend is definitely up and we are playing aggressively on any dips.     

USAP, this is another low floater which perhaps has a valuation mismatch.   Today's advance does not surprise us and we are also playing aggressively on the dip camp.    Keep in mind, no stocks go up forever and we are less inclined to chase in this weak market environment unless the stock is fresh out of a breakout.    What we meant is that compare USAP to CCF, USAP is a bit stretched at this point and we are sure there willl be opportunities to add at a good price.  The sell off Friday provided such this morning for many.  Well if it goes up another few points from this point without stopping, we won't be upset either with our current position.   The point is, no need to be greedy when the mkt is seemingly in a bad mood right now.

AMK, we alerted this one late in the day b/c we feel this one is setting up nicely.   With less than two week before the earning date, we feel this one has a chance to get a pre-earning run-up going.    We have seen what this stock is capable of and we are willing to give it a chase here.

IPGP, we've talked about this stock being discovered, today was the start you could say as the brokers came out with their initiations on it. Some big names behind this IPO, one of them MER gave a BUY rating as well.  We're still out but we are watching. 

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.

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.  

..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.

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.

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

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

..with Love!... signed FC.B

Who you gonna trust in a untrustworthy market on Valentines Day?.... FC. Bernanke of course!.lol...The man blew a kiss and the market caught it big time..every sector got a big wet one from Fed Chairman today!  We won't bore you with this as we just react around here and let others digest and dissect all of this.  All we know is the contenders come out and play and the pretenders stay pat.  It is days like this that you fully understand if you should cut the laggards ( if you haven't the last few days).  If your stock didn't participate today or even yesterday, you are trailing the market.  Today proved the majority of DJIM stocks have been the right play, many toyed with new highs or just had nice action days.  Here is what was in the Box of Chocolates....the spiked ones first

TRT, well excuse if we didn't have time to wrap this one up..lol...we've talked about the lack of love TRT might experience and the reasons why this time around. This is why we had the starter at 13.50 and said we want confirmation over $14 before adding. Well...things changed a bit today and so did our thinking.  Seemingly no one else was connecting the report of the semi AMAT to TRT.   You know,  if you punch TRT competitors.. AMAT is a name you see.   The thinking was simple.  The semi's gap and TRT is sitting in the mid $13's with 30K volume only after stellar earnings.  HUH?..Just like CENX yesterday to a degree, this was a secondary play today on semi's and it was not participating.  We thought this wouldn't last but we didn't expect the rush of 300k plus shares to come in the last 2 hours..lol.  We added as soon as volume doubled from 30-40k time mention and added all the way up before taking some off end of day.  Considering all the time in the world was had for DJIM members to buy TRT since the report, including today under $14.... we can't say we'll be adding in the morning and maybe you should hold off too.

HRBN was the other stock we noted today at 12.70's made a NCH.  Yep, its the same Herbie we introduced at $10 and the spike to 13.70 the next day.  Well, hopefully it got that exuberance out of its system and can hold its gains.  Whatever the case , the China stocks look better as the FXI stabilizes and so we thought we'd go with the small gap open after yesterdays reversal.  We noted the big bids in alert, either this gets taken up into the conference HRBN is at on the 19th and/ or this bidder turns to seller on any bigger ramp up.  Hey, it's a market!

So those were the sweetest gainers but there was more in the box...

USAP made new highs, we have talked about this all week and today was the result.  MFW which reversed along side USAP the other day also finished well.  ENR BW VE OEH CGX HXM all put on a good show. We released most of our VARI as it seems tired and didn't participate.  A nice run for VARI and we'll be back.  It is best to release into a high quietly, nothing beats it after such a walk up since earnings.   So what you have is a bunch of stocks that performed well in a good environment, if you have ones that didn't...you most likely have a true laggard..a laggard is not ONXX that needed to rest after huge gains but an ALGN which can't bust out in a perfect storm for a stock that had its sight on a break.    Simply, you want to be in strength and not in stocks that make you have sleepy money.