Go with the flow...
Monday, March 26, 2007 at 11:03PM The best thing about us traders is that our trading opinion is purely dictated by the market actions. Show us what you are made of and then we can act accordingly. Also fortunately, that since most of us trade only for our personal account, we don't have to follow a certain trading policy, a rigorous trading doctrine or any guideline that eventually will bound our creativity and potential. Of course, many mutual funds and hedge funds just don't have that luxury and they have to do what's right and be responsible for their clients. For us, we just have to do what's best for us. As we evolve from an amateur trader to a more sophisticated trader, we improve our trading along the way, until we find that working strategy that clicks in with our personality. And then, we tweak it more and practice and trade more and get more experienced until we find ourselves extremely confident and comfortable with what we trade, how we trade and when we trade.
Hopefully, we try to bring that kind of experience to our readers and eventually help you achieve your goal to become a great trader.
Now onto the market. Wow is really the word to describe the action today. One thing we know coming out of this weekend is that this market will need some sort of a dip to become stronger. The unknown thing before the start of the day is "how market is going to react to a dip". Now we know! Reading the final count is kind of meaningless as most would think it's another boring day. The intraday action showed that people are willing to buy this dip and buy this dip hard. Why is this important? If people think market is gonna visit the recent low again, they wouldn't rush in to buy this first dip so aggressively and early. It definitely gives great confidence to those that are on the sideline or those that are waiting to put capital into work. The underlying sentiment is that it's OK to buy into this market again. For us, we say game on and it forces us to dip right into the business with some vigor. The market had more than one reason to be hit and stay down today, incredibly it snapped back. This shows what we said last night and that there are forces much bigger than all of us at work on this market.
Now some stocks...
DXPE, it was noted on our forum last week that it had the potential to setup a breakout and we added on Friday. Last night we reminded DXPE, "looks to be building up for a move higher". Today we got rewarded and hope you did too!. Party does not seem to be over in this one and it looks like it has more legs behind it.
NVTL, it's inevitable that there's some sort of "sell on news" reaction to its updated guidance today. The point is that all of us have started playing this one days ago on it's strength and most of us should've been cashing in some or all of the chips. If you wake to a 18% move on guidance, you should take it. They didn't exactly find a cure for something to deserve such. We'll keep an eye on it going forward.
CRZ AMAG, these two closed favourably for us. Even though they may not have the spotlight, they could be steady "money movers" for us.
JSDA, this one breaks out today and it's definitely acting like it wants to be the other energy drink maker. We are trading this one according to the action only and have no bias on its fundamentals whatsoever.
OEH, takeover talk..... boring! Yes it's boring to hear those things these days but the appreciation in the stock in recent days is anything but boring. Another $1 move and now to $61.60 after being $55 and breaking out as noted in Forum before the takeover talk even started. We love this one and we are willing to hold onto it for some more development.
AXLA ACAD, finally we have these two to cap off the day. Take it or leave it, biotechs are hot. The ones in the news are given such a reward that we can not afford to ignore them. We've had experience in this schizo market with VNDA, ACAD and so figured this had potential to run as well. We always give these ones out in the pre-market and hopefully many readers had a chance to get in at a good price on ALXA. $12.50 to $13 was available at Alert time and for the next 10 minutes or so. We were probably one of the first to show our love here. Still, there was plenty in the low $14's to get high $15's out of this news in the short term. ACAD has held up nicely since its news, we might see the same in ALXA.