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.

DJIM #28 2008

In a typical holiday week trading fashion, things just went by quickly.    At the beginning of the week, we stressed out the importance of holiday week.   True to our belief, there was no shortage of plays and many were very opportunistic.    As the week has gone by, we are basically back to the point where we expect a flurry of earning reports.    Unlike the other quarters, this earning period seems to last the shortest with possibly the worst market reaction.    This is typical of this time of the year.    However, judging by the enthusiasm we've seen during the past few weeks, it doesn't really feel that we are slowing down, as far as trading goes.    Perhaps this has alot to do with the fact that the market is sitting relatively near the year high.   When the market is at or near the high, there always tend to be opportunities, and people always tend to be optimistic and are willing to put money into work.    This is just the way our psychology works.

So far, we had RIMM to thank for.   In the coming weeks, we are going to see more reports coming out.   Some reports will be praised and some will not be.    As far as our game plan goes, we are going to sift through reports that spawn the strongest trading reaction, positively of course.   We'd try to catch those that hopefully give us enough time and room to play.     

here are some strong plays from last week that may carry over into the coming week....

DRYS/TBSI, these two are the only two shippers we played last week and both of them pretty much closed out the week near the high.   At this point, we like DRYS's chart slightly better as TBSI looks a little too extended at this point.   However, we've learned too much from the past that we can only be so cautious.    A play will run its course whenever it decides to.   For us, even when we decided we should raise our cautionary flag, we'd still only keep it in the back of mind and react quickly once the reversal does happen.    Basically, we just have to be better prepared when the action gets too extended.

LPHI, this one is beginning to look better now.   After its initial sell of and the breach of 9 ema, it seems to stabilize the last few days.    If it can break the $36 area, we'd be back in full force.

AZZ, this one had a pretty good earning reaction and last few days have just been phenomenal.    It's now back near the old high and we'd see if it gather enough momentum to start a fresh legup from this point.

FWLT, volume didn'st seem to drop that much last week.   This is a good sign as the stock basically broke out from its consolidative trendline.   How high can it go or will it go?     We don't know but we know that we'll play this one untill the music stops.

FSLR/JASO/LDK/TSL,  we added TSL to the group last week.   This group has done some nice work last week.   As long as the 9 ema is in tact, we are trading them actively.

PENX, can this one pull a LPHI or RCCC?   In honesty, we'd like to see this one consolidate a bit.   The sooner it can consolidate, the better chance it can pull another runup.    We are keeping our eyes on this one very closely.

DDUP/SCOR, these two recent tech IPOs are hot on our list last couple of days.   We like their action in conjunction with the rest of the tech sector.   We think the runup will definitely carry into next week and we'd be trading these two aggressively.

Other notable gainers last week include SPAN MBLX GTLS CUB BTJ TRCR...

..How high can they go?

The better question might be... is how high can you go with some these solar stocks?   Remember the trip down can get pretty trippy when you are dealing with momentum stocks that have powered up as much as some of these have lately.  Still, a new twist to these big plays is that a few of them produced contracts today to help push them. FSLR got the ball rolling announcing deals worth around 1.3 billion with renewable energy co's out of Europe and TSL followed up with more deals. So are these deals enough to push these even higher or do they just tap the recent run?. Time will tell, but the best thing is to have these on a tight leash..in other words trade them, get in and get out with the tide.  Another positive for FSLR and JASO today was the intervention by a few firms to raise price targets.  A RJ up to $48 really got JASO clicking later in the day.  Are these firms late to the party or are they going to push these higher?.   Lots of questions, lots of momentum and even some secondary solar plays are putting up charts at the close that can't be ignored.  LDK, HOKU are two examples of NCH's, nice charts that can't be overlooked even if they are solar powered.  It's really up to the individual on some of these as to your comfort level. If you've been following them daily off the Journal since the 25th of June, you likely took some of the table today or plan to tomorrow into any morning strength or maybe not and you'll keep riding the momo for as long as it lasts. Just be on guard is all we can say on some of the flying solars.  Hopefully, the contracts and firms getting involved further at these lofty heights is enough for this to continue.  Lets hope for more contracts and more firms upping the estimates/targets. These stocks are not going away in the long run, they came back from the early part of the year when we were trading them hard and now is just another opportunity to capitalize. There will be others down the road if this detours any time soon.

Now..back on planet earth this Monday. We didn't wake to a slew of M & A deals, but you have appreciate the huge buybacks today by JNJ/COP.  Besides, earnings/ M&A action in 07', buybacks have a been an important catalyst as well.  If the firms are buying back at these prices, well then the investor asks why shouldn't I?. It also didn't hurt a 20% premium was put on the head of FDX by a weekend publication.

CMI, this is the 2nd time we hit it nicely off an alert in the past of months. We liked how the stars were aligning with a breakout on the heels of a Bear Stearns upgrade. What you can't ignore is a 10 point move and that it is best to take profits along the way. A steady move such as this allows for entry almost at any point to then take a few points off.  If what you had hoped for in a few days happens within hours...all you could do is take profits somewhere within todays price range and look to re-enter another time.

SPAN, this was highlighted a few weeks back in DJIM #26 as a potential play from around $24. Today it tacked on another 5% to a NCH at $30.60. Buying the pullbacks has been a profitable trade in this one. Maybe we'll get another one later this month.

PENX, TBSI, CUB, DDUP ..usual suspects had nice days again.

And if there is ever any reminding needed of why we trade BTJ the way we do (this sort of came up recently on forum)....well, today's action is the simple reason why.  This is also they type of action some of the solars are capable of sooner or later.

DJIM #29 2007

The easiest thing to do would be to speak of the big market move last week, but we won't do that and instead look forward to the week ahead. Hopefully, we steered you in the right direction in our Journals the past while and you have stayed invested heavily in the market and our plays as they were the beneficiaries as much as anything else last week. Just looking at the list from DIM #28...DRYS TBSI LPHI AZZ FWLT PENX DDUP SCOR FSLR TSL LDK JASO and you see who played with enthusiasm.  If you need still need to grasp the significance of last weeks action, just look at the weekend charts/comments.  Funniest quote so far heard though, is ..."meanwhile while the media is enjoying their victory lap, many investors are less than enthusiastic about the moves in their accounts at the end of the week....they didn't see the same huge gains in their accounts".  Name the the tout and win a free month at DJIMstocks...NAH, that wouldn't work as too many of you are quite familiar with this singer.  Sounds like sour grapes for some reason, if you ask us!.   At this point in the game, we have to look for some potential stalled action, fortunately we have earnings as the base of this DJIMstocks and it should not stop us from going forward as earnings will pick up this week and new picks will start to show their colors.  We already had some nice reports from CCF, GBX, SCHN  indicating a diverse crop of good reports possibly to follow. Use our Earnings Dates link to see some notables reporting.  Again, we ask for members to post within that link any earning dates for DJIM stocks past and present plays you might come across and we will edit them into a list for all to keep track of this Q.  Going forward, we're basically keeping to the same list as last weekend of stocks we are concentrating on, plus a few new ones that appear all over DJIM last week.  Take into consideration some stalling action in the market realistically should come to some of our names as well.  When that happens we wait and see if the stock sets up again for us to enter a buy in. Examples of this are PENX and DDUP late Friday. LPHI was another were patience is rewarded as it put in a 5pt move after we moved in again.  There is not much to add to individual stocks that was not already said last week, nothing has changed really in our thinking towards those plays  A few other breakouts of past DJIM stocks that we have not signalled out but have been mentioned in our forum such as CMED, SPEC should also be included in any watchlist. The most important thing right now is probably to start freeing up some cash if you are heavily invested to use on new plays that will emerge.  It is quite hard now as everything seems to be running and gunning out there, but it is something you might start doing this week.

..can't we all just get along?

...Can't we just use the late afternoon pre 4pm Journal edition and not the 4:01pm GOOG edition.  What was an impressive day with earnings from many giving the hyper bulls more ammo turned quickly sour with GOOG's results.  Maybe if GOOG gave guidance, we'd not be sitting here guessing what will transpire next.  There is really no point to guess the extent of the damage tonight.  A first step is to see reaction of firms in their notes in the morning and then to see where the spillover might or might not be.  Do all the better than expected reports, including NASD tech get washed out by GOOG's report?. The short fear mongers will definitely give this news a good run for your money.  All we could do is watch what our closely followed do tomorrow and that does not mean just in the first hours of trading...Back to before 4pm with DJIM stocks...

AP, opened strong and then basically flat lined the rest of the day. We couldn't have asked for a better follow through day of about 4%.

DRYS, TBSI etc., the shippers are getting positive morning calls day after day. At these levels we are somewhat fearful of nosebleeds to hold these overnight. The best way to trade these is to watch for more morning calls on the sector and trade them from the open and swing some points out of them.

LDK, last night we noted some of the targets on it and the fact that it was only 7pts off IPO price. Well..make that 10 now as it was the most impressive solar out there. We'd look for a pullback if this missed today even off the NCH as the solars might get some pressure... FSLR is off AH about 5 pts due to an offering of 9.65 mln shares... "We are selling 4,000,000 shares and the selling stockholders named in this prospectus are selling 5,650,000 shares of our common stock. We will not receive any of the proceeds from the sale of shares by the selling stockholders."  The interesting thing about these offerings is they should be assumed to occur sooner than later.  You don't sign up 1.28 bln in contracts and continue to work out of your single garage...you need a double garage and you need to fund it.   Still, one of the shorts fave words is dilution and they will work it.

TXT, we thought this could do a quick move off the open and it that shooting 6-7pts.  Short lived as it might be, it serves some of our subs' trading tactics.  We liked the report and if the market sentiment doesn't turn here, we'll hold on to the starter.  We think it has upside off this report ...Reports Q2 (Jun) earnings of $1.69 per share, $0.24 better than the Reuters Estimates consensus of $1.45; revenues rose 14.7% year/year to $3.23 bln vs the $3.09 bln consensus. Co issues in-line guidance for Q3, sees EPS of $1.45-1.55 vs. $1.53 consensus. Co issues upside guidance for FY07, sees EPS of $6.35-6.55, up from previous guidance of $6.10-6.30, vs. $6.31 consensus; sees FY07 rev growth of approx 12%, which equates to revs of approx $12.87 bln vs. $12.6 bln consensus. Also announced repurchase and stock split. Primarily aviation, defense play.

Whatever happens tomorrow, trading opportunities will still come forward.  If you looked over VMI, BMI from last nights Journal lead...or a quick in the form of SBEI's to $7, a DDUP move today to almost $29 shows there is and will be plenty of plays depending on your style.....but what we are gearing for and anticipating is micro- small cap earnings to concentrate on outside of the GOOG world noise.

TTPY, also have a look at this recent IPO, next generation radiation oncology equipment that is gaining acceptance in the marketplace.

..nice day in select group...

Another round of M&A activity on a Monday gave the markets reason to bounce after Fridays sell off.   However, the taste of disappointing tech earnings lingers on as the NASD gave up most of its gains by days end. Somewhere in the middle of all this were a bunch of closely followed DJIMstocks that had some fabulous action.

TXT, after consolidating some of its gap gains off earnings, today it showed some of it's potential by climbing a steady 3%. Now we see if it can take out the highs on earnings day and gain some momentum to which we can add to.

DDUP, we`d love to see what this one could do with some volume. Could easily be a 2-3 point day in store for it if the volume actually showed up.

TTPY, this newbie from last week pushed hard early to mid 26's on the heels of its late day push Friday.  We'll see if this action puts this IPO on some trading screens by watching the volume before adding more.

TBSI, DRYS, this incredible action continues. We`ve outlined previously how we`d approach trading these at such lofty levels.

LDK, we talked about the targets this one got, well today at least one of them got hit. Unfortunately, it is really the only solar doing anything at the moment.  Maybe this is the way it will be until FSLR reports on the 31st.

PENX, looks to be back in the game as it closed with a NCH.

CMED, tacked on about 6% and could be the beneficiary of some of the ISRG action.  Reason being it has been mentioned as the next ISRG.

With AAPL to report on Wednesday, we`d put good ole`SNCR on top of your trading list for the next couple of sessions. Today it gapped off an upgrade related to the iphone.