Short week..

Boy it definitely feels like a long week to us.  Today's market is typical of summer action with exceptions to a couple of plays.  Really no conviction, somewhat expected after yesterdays move.   Most of the plays, according to our book, were trading in a fashion where we really don't care where they end up at the end of the day.   Hope tomorrow brings a little more action, even some volatility would be nice because today was a real snoozer.

MA, this play looks as though it can rest some here.   We liked its strong action for the past three days in a row but we feel even the strongest stocks should rest after a good move.   Given the float of the stock, there's a good chance that the stock may rest around here.

RCCC, this wireless play just keeps on moving u, fetching $33's today.  Right space, right time.

MFW, is another old DJIM flame that we bit some on late in the day. We like the move it made yesterday off a morning sell off, rebounding to finish strong. Today it carried on.

ESEA, we are adding this one to our watchlist and we've added a very small position today.   This one is in the same business as TBSI and both are exhibiting good strength in this market.

DJIM #23 2007

Last weekend the hope was a few billion dollar M&A deals to get the market stimulated again. A few billion turned into 60 billion worth of deals or more brought back from the Hampton's. Our one concern to stymie this market was if the Shang' would sooner than later unravel our market again.  A few did their best trying to make the stamp tax a double shot of the Shanghai surprise we saw early in the year. We didn't even touch on this in Wednesday's Journal because we saw it as a non event. As far as we're concerned, the Chinese government is gonna do things their way and it will take a few more maneuvers of this type to cause the bubble to burst and spread to here.  Likely they'll be careful now after the early year swoon.  Soon after the FOMC minutes came and we were off to the races.  Well...races, but not what we would call a sprint!.   Still...what last week did was provide some DJIM stocks an opportunity to come of their shell and play....So on to some names heading to the trading week...

TBSI, we are all familiar with this shipper now ( #8 IBD ), we were adding late in the day and think this is ready to resume upwards. While ESEA looks quite extended, TBSI keeps putting in tails off the 9ema (showing support).

ESEA, this shipper intro'd Thursday night turned into a 16% move come Friday. Yes, a full 16% as the open price (13.40) and later a dip gave a chance to catch most of this move. Of course, we took some profits but we were back for more during the day. The PE seemed to be below the norm for these shippers and probably helped out its cause.

DRYS, is another Greek shipper we took a position in.  If this sector continues to climb, we like where this one sits on the chart to play along. This is a good and fast mover when caught at the right time.  We took a smaller position as we wait to see if this has the ouzo to bust out.

MR CYNO, a couple of names here for months made it to IBD's front page this weekend as both busted out to new highs. CYNO was basing between 30-32 for about a month, while MR is getting quite jumpy, you really have no idea day to day what it is going to do.  Sometimes with quality names you just have stick it out.  The front page coverage might get them some more air this week. We'll see...

PCS, TTC, MFLO recent pick ups closed at NCH's or close.  A few others that have been around longer at DJIM.. GTI NTLS RCCC TRCR also remain strong.

FWLT CROX MA continue to get DJIM trading dollars, mostly on positive index days.  Not much can be said that hasn't been said about these stocks since their earnings.

NOVC, as we said, the easy money has been made and we are only looking to trade it when there is some signs of life. The biggest mistake you can make is trying to get a piece of NOVC, if you missed the first move.  Too may are looking for a repeat move.  It's not going to happen to that magnitude without more news, so there is no need to feel left out.  Also, do understand it is inevitable with biotechs that firms come out and raise targets to very high levels. They have no choice as now there is finally news.  These targets, sometimes 50-100% higher are looking a year and more down the road and are calculating a perfect storm of everything going right to that time.  The chances are a biotech will leave your mind in a week or two as another takes it's place.  It does with us.    Unless you are a long term speculative investor, you are unlikely to see those price targets hit for NOVC, CYBP etc.this summer.

PLPC, bought a few shares to tuck away, maybe this has a little HTC, EML in it. These types are only if you have space and time to spare in your book for some not so liquid stocks.

Hump day..

Unfortunately, there isn't much to get over on hump day Wednesday following these last two days, which might be a good thing!. Considering the market has done little but trade in a tight range following the gap up, this lull might be more positive than anything else.  Still this market is driven now by the slightest news, so what might look positive can change in a flash.  Tomorrow is an important transport  FDX earning that might move things one way or another.  In the meantime, we'll continue to look at for the next new mover or the next move in an already played DJIM stock as in a couple today...

CMED, this one can catch the momo as seen this morning and this possibility is one reason we entered yesterday..playing off its history. Now that the stock has come down from its lofty heights following its IPO date in 2005, it might be ready for another leg up off its latest earning. Today's early morning spike to 32.98 might be due to a brokerage call on it and there might be more to follow. By adding another product line recently, it's growth is likely to keep ticking. As we said in our initial alert, its trading can be erratic. The good thing about that is it provides new buying opportunities.

AIRT, the good part of a slow moving market is it gives you time to lurk around some plays in more detail. Today we spotted a potential 'nibble' to be at around $10.50 that materialized into a move over $11. As other recent plays that are comparable to AIRT dry out,  we might get more traders coming to this fresh play. Today's chart might catch an eye or two as well now.

RCCC, last night we touched on RCCC as a potential trade to watch today. If you had it close on hand, maybe you were able to get something out of the nearly 4pt rebound.  When a stock climbs like RCCC from say $15 to over $40 in a few months sooner than later you get a biggie breakdown. They are inevitable and the same probably is the case for KMGB late in the day...

KMGB, and on the 15th of trading day following earnings it fell through the chimney and stomped its butt on the 9ema!. There was nothing we could see for the drop other the inevitable drop after 15 or so days of solid gains, especially for a low float winner.  We dont consider this play over at all and took this as an opportunity to get some back.  It might fall more tomorrow even if there is nothing of news substance, but like RCCC did today...we expect this to move back up.  We'll most likely start building up a position back up as the dust settles or see buying come in.  This sector is not going to fade off into the distance, today it was the #1 performer for most of the day and it will be again and again. We'd be more careful with TNH now.

CUB, continues on and today it was an extension of a big contract. Now nearly 50% since we alerted, we can say it has been recognized as a defense play as we noted it would sooner than later.

SDTH, it just feels its not far away from another leg up. With China cheapies getting play today, don't be surprised if it swings to here if the mania continues into tomorrow.

Also TBSI is back as one to possibly move into as it made a NCH today. ESEA is around as well.

...The Love boat (ship)

Despite the major indices puttering along, notably the Dow as the big caps lost its allure thanks to profit worries hitting the A-B-C's and even an M of the big cap niche (AA,BA,CVX,MON), the DJIM closely watched index hardly blinked an eye.  This midday down tick included the RUT, rotting away till a late push made for a mixed day.   Life went on here, the main concentration here this week continued on the Shipping stocks and most of us were humming....Love, exciting and new..Come aboard.  We 're expecting you.  Love, life's sweetest reward...let it flow, it floats back to you....Okay, no romance here, but we were all waiting for more traders to get aboard our ships filled with iron ore and cereals to send our stocks higher.   Most importantly, we were waiting for those interested in a FREE ride and we definitely got this low floater discovered as it hit Briefingtrader and then late afternoon the more widely read day log that really pushed it.  This was our cry in the forum early and our cries turned to smiles as they profiled FREE late in the day.

The boys DRYS, TBSI, EXM, the secondary plays ESEA, PRGN started great and of course the idea of FREE caught on.   For a second lets turn back the clock to Aug 26 when we issued a weekend alert as the markets were dwindling, yet the shippers were making new highs.   What a concept buying the NCH is!.  This time it wasn't for an individual stock, it was for a sector.    Why not?.   This just stamps the over played methodology here of buying the strongest, those near highs and those making NCH's.   Same goes for the China stocks we've been trading.   The idea Tuesday at noon that this sector might go even higher after an already great morning proved to be true and TBSI had a nice and quick 5 point upside from the $50 mark.  Oh yeah, great job Briefingcom for picking up on the secondary plays to the big boys, it only helps our cause that was expressed here early this week.  We're not looking for the recent China speculative action to repeat itself,  so what we do is sell to the ones boarding this train late...sorry meant ship!.   Hey, every nice size cargo has to be unloaded at some time and we're not shy about doing it.    FREE, we waited long enough for this to be discovered,  our last note was early Tuesday afternoon and of course we were selling quite a bit into the strength.   We've always tried and discovered stocks before the herd as many of you know from hanging out with us at those seedy bars before.   There is money to be made in getting early, it is a clear monetary advantage to get to something first and use the later herd discovery as an advantage to your pocket book.   This was the case with FREE, even MHJ got  some print and pump in other circles.    We don't doubt this could go higher as this discovery on huge volume should give it legs and we'll trade it accordingly.   Our only fault with it is it has a knack of giving it up (gains) and until that seller is completely removed, we aren't so sure it won't again.   If using the big volume surge as a gauge this shouldn't happen...still if some profit taking takes its course in the big boys soon, this FREE will see it too.  The BDI jumped 3.6% and the fever will continue into Q1 `08, but not without a few hiccups.   We've seen them before eh?.  Not all up days are 3.6% on a index are they.  Also, don't confuse dry bulk ships with those carrying crude.   There isn't a worse area to swim in.

Unless the #'s, guidance from the big techs ( most importantly) is terrible, we are of the gut feeling the RUT will have a melt up into the late stage of 2007 and catch up to the indices that are making new highs seemingly daily. We're in the right place with the niche we cover if this happens..okay, when it happens;).  So, don't panic when you see the DJIA drift lower just over100 points if your DJIM play list is not blinking like yesterday.  Anyways, a very good week as we've been in the loop as to what is going to move. 

A few scattered names of interest/ focus that we have been adding to or looking to possibly get in, include................

VMW, tgt raised yesterday by UBS,    China's STV, WX ,EDU (eps next week, maybe a little run before off a NCH today), also dirty Brean Murray is here so after JRJC who knows what they might have in mind here,    GLDN, which regrouped and had a solid day,   CETV near highs,   CSCT which had some news out on revenue yesterday,  maybe even GROW on a reversal following some asset news yesterday and ARTW, following EPS midday.