.. a sigh of relief
Thursday, April 19, 2007 at 10:24PM Let's be honest and take a small cap market with no conviction as a winning day today. This is because we were opening today to a sell off in overseas markets due to rate hike speculation in China and a 4.5% drop in the Shang'. Here we go again...February 27th!....NOT!. As earnings reports step up in numbers, it is evident the market is waiting for the techs to come in and push this market higher. So far, they are clearly not serving up as a catalyst for this market. We need something soon to get out of what feels like summer trading to us!.
Deal with what you're given and try to make the most of it...even if it's a AVNR!. A trade is a trade, money is involved to make more money, so who gives a hoot if some stocks are of the paper bag over the head material. As long as you use the same trading discipline but with a little extra care, even a $1 dollar stock can be the only win you'll need all week or month. There is not much to say or do we want to say more about it, except it went just like our gut told us this morning with a 20+% pop that was there within minutes after the bell. Speaking of paper bag, this one got ugly as it threw up in one when it cracked yesterdays support at $5 and closed under $4. Like we said in the forum, we didn't give a damn or give a damn about any stock that goes nearly 50% in a few trading hours and try to find another entry. Those looking for another entry today are mostly those that missed the train. We usually bet the first train out of the station will be the runaway. That's the one you want a ticket on!. We turn our back on such plays after such a run and so should have anybody that got in on DJIM's alert in the afternoon yesterday. The risk is not playing a $1..2..or 3 dollar stock. It's not knowing how to play that is the risk. Hopefully, we covered this type of play enough last night for future speculative plays that come across DJIM.
Last night, we noted that there a few too many stocks with a chance at breaking out but failing to do so. Today...just before 1pm, we noted we'd be looking for follow through later in the day to add positions in FCSX and RCCC. Clearly ...this did not happen as both started to give up their gains on the day soon after. You can add these to the ' a few too many ' category. Maybe they should just give up now and pullback ..really pullback.
ATR, this one pulled off one of the better reports so far this Q. It had everything... a beat the street, a raised guidance and even a 2-1 split. This type of stock falls into the ABM's of the small cap world, we don't expect it to be a runner, but potentially a nice stock to accumulate in a good market as this is 90+% institution owned. We got a starter at the open and will add if it performs better than last Q after day 1 earning. The split might just give it more upside in the short term than last time.
USAT, this was our only other buy coming late in the day. This one has held up quite well since we into'd it April 9th. Todays...POS news launch just happened to coincide with USAT kissing the 9ema for a few days. One couldn't do it without the other today for a NCH move. We'd like to see more volume come in to make it more than just a trade for a day or two. We'll see....
This is not the time to jump right into a play because your book is thin. Be patient. It's hard, very hard after the explosive runs we had here in JSDA, TSL, UXG and more. Don't trade for the sake of trading, trade for the sake of making money.