Churning..

and possibly more churning ahead of us!    Despite the fact we are green today, we are very much in a churning mode.    As far as the overall picture is concerned, this is considered healthy.     We churn churn until we see a clear break out or break down of the major indices.    If we break out, we would know exactly where the resistance is but if we break down, it's hard to gauge the exact support line.   Of course, you can always argue that last July's low may be the area but we feel that low may be too low for the current market environment.  All this market gibberish does not mean there were not a load of tradable opportunities from this weekends DJIM#11 and that is all we care about end of day!.

So what's happening with the market these days?   We think many Briefing.com chasers have the answer and we are sure they are having a blast taking advantage of some of the headlines there over the past 2 weeks.  We have said its a traders market the past 10 trading days, it's a scalpers market and this all most use the service for.   Does that mean we all have to switch our strategy now to a day trader mentality and chase the headlines one at a time?   Of course, we were all going a little brain dead sitting in a lot of cash, but it does not mean you switch your strategy and start going for the headlines just because you are a little bored.  If you're not at work...Have an early drink and then a nap but don't switch your style!.    DJIMstocks.com is not for scalpers, headline chasers.  Scalping, flipping headlines is not for the majority of subscribers here and this type of trading is not for us.    For us, we just can't see ourselves going through that transformation and there were many lessons learned from the past that we have to stick to what we are good at, more so now than ever.     Besides, there's really no art or longevity to trading briefing type of plays unless you have no trading life or life and can address and listen to 300 "peeps" alerts all day..then read and then be ready to jump in and out.   We prefer to use our own imagination and our own opinions.  It helps as any news wire, but it's not something we need or would ever live by to trade.  Also,  it's two of us against 300 of them in an office and we still get out enough winners to live off before they get to profiling them.  That has been shown way too many times over the past few years.  Anyways...We gave a weekend hit list for Monday as to what we'll be looking to trade.  You didn't need a Briefing for these moves, all you needed was a "lead' from DJIM;).. FSLR+11.2%  TSL+9.2%  CYNO +8.45% BTJ +7.5% JSDA+9% or give a "one damn eye " on AFAM when it had traded 100 shares premarket at 20.90 and then later to a high of $23.90.   Nobody is expected and we don't expect to catch all these moves, but if you had a small hit list as given last night... you should have had a stellar day just by going after one or two.   What we are giving is what we are looking at, if you don't want to look at it and give it some attention when its behaving well..meaning it's green and getting interest....well then you're missing the point of DJIMstocks.  You should not be looking for other opportunities if these are in front of you already and working.  We become oblivious to other names when the going is this good.  All efforts and capital are with what is working!!!.  No time for laggards!!!  No time to look for other plays.     OK...   We weren't fans of JSDA and said last night we'll see...well we saw very good interest and traded it but still are not waving the Maple Leaf flag.  Still fresh on our minds as per Journal and IBD listing and therefore this should've been on top of your trading list as well for the day. End of day we are empty of it, but will play it again. No flag burning, we will just wait to see if it has more in its tank. 

So how do we approach this market then?    We are still finding some of those earning plays that we've been covering for a while and singling them out as our trading candidates.   Here are some more...

BTJ, could it be that ppl are discovering this stock for the first time and trading it like a momo or could it just all be IBD fever?    We think it may be a little of both and we are definitely leaning more toward that IBD thesis and as pointed out last night the steadiness of Oil over $60 recently..helps!.   Yes, it's ranked as #1 IBD100 over the weekend and the reaction today is very good, especially given the fact how much it has climbed last week.    At this point, we have to caution that being IBD #1, this stocks's fundamental may be thrown out the window and momentum/trading will be taking the dominant force behind the action.   Watch the action more and don't ever let your feeling of "how much the stock should be worth" get in the way of making proper entry/exit point as the stock behaves along.

FSLR TSL, this pair has definitely been our favourite solar plays, or rather, the only solar plays we trade during the last few days.    Again, we'd favour FSLR slightly more here as TSL is more prone to "gap downs" off weakness in Asia.    Also, we are pointing out that these two are mainly eps driven, and this is the reason why these two have the biggest momentum among the solar space.    See, the action still comes down to earning.     So are we going to play any other solar laggards?   At this point, we aren't even considering touching any other solar plays b/c in the world of stock market, only the best get rewarded.   In other words, there's no second or third place when it comes to naming a best play.     We have been trading these ones aggressively on the long side but we have been doing it with smaller sizes than we would normally do in a favourable market condition.    

EML, this little one made a new closing high but we aren't willing to give it a hard chase b/c of the volume and still just hold a part of position from earning time.  The point of pointing this one out is that odds are always on your side when you are stuck with an "eps story" as oppose to other kind of plays. Just look how far SYNL, EML have come since being DJIM insertions last Q. If you want to tuck a stock in a drawer these thinsters with earnings provide a safe play early on.  AFAM and EML are very similar, except AFAM has a history of holding its big gains better.  AFAM made a revenue high of 26.32mln and reported a high EPS Q of 26c vs. 16 YOY.  We held a small piece through to close after taking advantage in some of the 3 pt move intraday.  Simply, we don't want DJIM filled with these plays at this time, it does not mean you can't put it in a drawer.  It just should not be the focus of so many members as EML started to become at one point early on.

Play Ball!

Nice market action to go with it!   Maybe people are excited b/c today's the opening day of the baseball season, but whatever the case, we are definitely enjoying a change of pace from this market.    Yes, this is a short week but there was nothing short on setups today.   We had many setups to consider and we played most of them.   The question remains, is this sort of action going to last a couple of days?    We think the odds is high that we see some continued good action and timing is just about right too going into the earning season.    Lets just get right into some action here...

WBD, hope you didn't get tired of seeing WBD recently here?, today was the payoff with a big move over $83. A 5 point intraday move from low to high of day.

BW, this was a big earnings winner here from low 40's to 49.  It rebounded recently and consolidated near the top.  $50 was probably the breakout point and it broke out convincingly, with volume of course.    We like this one and feel this could be the beginning of a leg up.   At this point, we don't know how high it can go but as long as the momentum is there and trading action looks positive, we'll just ride it along.

JSDA, we noted during the weekend journal that Cramer definitely has an effect on a stock like this one.   We sure got the action from it today and it's now ready to challenge the old high.   We think there's enough enthusiasm and momentum from speculators/traders that this one can go higher.   Market's stability is also providing a catalyst for people to pile some capital into some of these momentum names.

GMRK, although this one is new on our playlist , it's definitely one we've had our eyes on for a while.   We like its consolidating action last little while and earlier today we felt it could b/o.   Action was confirmed and we followed.  Hopefully this one keeps up a good pace next little while.  Remember in quality plays it is not about catching the initial move but just being in it when it continues.  Did it matter if you bought BW the first time at 42 or 44 if it got to $49?. The point is finding the right plays and we think this one could be one.

GROW, it looks like some stocks just won't go away.   We didn't play the most recent rise b/c we weren't sure how the stock is going to act after the split.   Well it setup nicely today and this is something we couldn't just pass on.    Again, this stock is very much a momentum stock and it's pure momentum trading, nothing more.   We just want readers to be aware of this fact and trade accordingly, and with a cool head.

OYOG  OEH  BTJ  HOT NIHD,  just some good old fashioned action/setup with these ones and we added some of each today.

There are probably a few other ones worth mentioning but we felt there's so much out there today that everyone can get a couple of his/her own favourite and call it a day.    Three more days to go till the long weekend and lets keep our fingers crossed for some good action for the next couple of days.  With the Nasdaq barely green end of day, we can definitely say we had DJIM readers in the right stocks today.

Market pulls itself up...

DEFIBRILLATOR anyone?. We're thinking of having one on hand for the new members..;)...Those that have been with us and trading these types know there is no great reward without a little heart stopping activity..lol.. ..In regards to the market tone, if we get scared, we'll tell you as we always have by issuing an alert like in February. Right now everyone is trying to say the market is over bought and bringing in the seasonality factor to scare you out of your positions.  If they are right.....FINALLY!.....and they've been trying for months, we'll gladly go into cash and withstand the punishment others might start to feel while being very selective in our plays.   As far as we are concerned, we go day by day and a pullback eg. on the NASD to 2500 level would be nothing but the perfect retracement to go higher.  If this level breaks down on volume, we might be issuing that alert.  Also, this is earning time and we will have new plays to come even/ if in the worst of times in the next month or so. 

On to today...

It's actually refreshing to see that market did the opposite of what it did yesterday.    That is, instead of turning lower, market managed to turn green later on in the afternoon.     Again, we can't really draw much conclusion from this move.    It's actually been a very mixed day, when it comes to our DJIM stocks.   Some stocks were hit earlier but managed to reverse and closed well but a couple of stocks did not seem to be affected by this market, one way or the other.     We are keeping our eyes on all of our recent earning plays and will decide to see what sort of action we'd take on them next few days.  

TRCR, this one actually bucked the trend earlier and stayed strong throughout the day.   The action today actually surprised us a little b/c we didn't expect fast momentum to come from this one out of all of the plays we'd covered last few days.  lol    We are not complaining though.   However, it remaines to be seen if it can get some serious momentum.    We do prefer a slower and steadier move with this one though. We sold most the other day and are only trading it at this point when a possible move is seen.

NGA, wow this one is volatile, to say the least.    We do like the ending action though.   Basically, it gives confidence that people are still very much into this one.   Hopefully this one consolidates a little here and forms a strong base so we get to much higher prices.

IDSA, is another that held up well today in the early going. Volume has been low the last couple of days while holding these levels. A good sign as potential sellers seem to want to stick around and see if this makes a run late in the week for IBD.  It won't take much to push it from this range over the hump.  Notice the last 3 days on chart, you can almost draw a perfect triangle > with today's close at 13.50 right in the middle.  Basically, the range got tighter today and something has to give.   A few of the things mentioned above makes us think this will go higher this week.

ALGN, this one battled back from yesterday's weakness and it's very close to a new high.    We are looking to see if some of the other earning play can pull a similar move within the next few days. Hey, if you got a think for teeth, there is ADPI today.  We like but want to see what the secondary earnings names we've mentioned have in them first.

BTJ, this one is being like btj.   We just need a strong stomach when it comes to dealing with its moves. lol.   We discussed DXPE the other night, BTJ is no different and same rules apply.  If you are starting a position the last few days, you are only trading it and should be jumping further in these moves. 5 pts off low today.  If you bought the earnings and like the story heading into the summer, stay strong....if it's not in you....move on.

The last few days we've had some intraday swings in the market, potential plays either don't materialize like yesterday or some get more juice like CPY did today...so take them as what they are and that is leads, keeping in mind the overall market conditions.  Simply the chance of a stock breaking out as it nears a playable area is thrown out the window (like SSVS approaching recent highs), if the market panics and reverses as we saw yesterday.

CPY, Sunday we brought it up because it exploded Friday to new highs.  Today you saw the significance of updating your screeners with stocks near highs.  Today's range was 57.51 to 66.62 on volume surpassing Fridays...9 potential pts worth to play inside of. This is a lead that materialized at 2pm as it popped another 3 pts after our note on it.  Something is up here, we don't know what but it is bringing in momentum.  We're trading it in small sizes today. Speculation can die off quickly so care is needed here.

Calm before the (earning)storm..

Undoubtedly, the next couple of days will be very quiet as we imagine most of the market participants will be away with their family.    This is not to say that opportunities will not be present during next couple of days.   On the contrary, we think there will be plenty of opportunities and the main concern for us will be the liquidity.    The lack of liquidity means that some already volatile stocks will be push to either direction with less volume.   This may create some "false" move but as long as we are aware of what's going on, we can take advantage of it.     What we are going to do is to keep our eyes on those that have been active during the first two days of the week.   Stocks such as TNH FSLR JASO... and even the ones that have been hot past few days BTJ PENX SNHY etc. will also be on our menu.    Just make sure that you are aware this is just holiday trading and take advantage of it but not over extrapolate things too much.

oh yeah, Happy Holiday!

One more day...

and this week will be in the history book.    So far, so good!    We aren't suprised by any of the action today but we are alittle surprised by the actual trading liquidity out there.   Today can definitely be passed as a non holiday, in terms of volume.    Does that mean most traders are done with their time off, perhaps!   Or, maybe many of them never even left their trading turret. lol    So, we basically had another round of good action today and helped mainly by the technology stocks.    When the technology sector shines, just about everything else shines too and also every one is in a good mood.    We are  quite busy with trades today especially after the lunch hour.    We expect the same kind of enthusiasm would return tomorrow to cap this trading week off as a very memorable one.

Some stocks in action today....

DDUP,  this is a recent techonolgy IPO that specializes in data storage.   Ok, this is about as much fundamental info we are gonna be concerned with at this point.    The stock basically held the $23 mark very well since the IPO day and today's basically the first day it closed well since its IPO day.   Everything fits the scenario well for this one.   This is in tech sector and it's a recent  IPO and sector is rallying and chart is good yadi yada.   So, we started a position near the high $23 and we'd be looking for follow through.   If the follow through comes, we'd be adding/trading it aggressively.

PENX, last Friday, we mentioned that we didn't want to miss another RCCC or LPHI type of move.   Well, it looks like this one is more or less getting to become one of those moves.   Fortunately, we didn't miss a beat on its move so far.   Stock made a new high today on decent volume.   How high will it go?   There's really no need to ask that question now, is there? lol

BTJ, there's a reason why we only write about  those stocks that did well.     Imagine if you are flat beginning your day, which stocks would you actually go after?   We'd only stick to those stocks that are green and hopefully strong till the end.     This one fits into that strong stock description perfectly.    We aren't buying and holding this one, as you'd imagine.   We are basically using its momentum to flip in and out constantly and if you have the time or will to trade this type of stocks, then this one is for you.

LOCM,  finally some people may wonder why we alerted on this one late during the day.    Basically, it's a trading opportunity and to us we are compelled to alert our members.    First of all, this one is not about earning and all about speculation.    We aren't looking at anything beyond its action toward the second half of the day.   In our opinion, the kind of late action this one was showing warrants a potential gap up the next morning.   This is strictly from our experience and of course nothing is for certain.    Still, we had to trade according to what's more probable to us.  This one is definitely a trader only play and we'll see what the morning action brings out.