...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. 

..winds of change?

Winds of change?...on any given day that weak news breeze would not have moved a leaf on a tree.  The weak breeze, the ones given as explanation everywhere is the JPM estimate knock down of BIDU and this Weber's comments from the European Central Bankl on raising rates.  Okay..since when is a 2mln cut in revenue estimates in one individual tech stock enough to cause the NASD to drop so steeply.  This wasn't a downgrade, they didn't lower EPS, they didn't cut the $400 targets they set in early October.  They actually gave a few highlights and said the revenue loss was due to what was already known in early September as a slight possible short term negative.     Now, to this Weber guy.    Going through the Financial Times here in Europe, there is not even a mention of this, okay one ...one line on the last page.    So what happened?.   Simply,  we've been talking about the divergence in volume to the rising indices as a concern.   You can't keep this action up without a negative tone setting in if it continues.  Add... the fact we had possibly reached a short term tree top based on so many consecutive up days,  it was inevitable to see a correction sooner than later with a shake of that AAPL tech tree.    The surprise was the magnitude, the steepness, the speed of the snapback, especially in these momentum big caps.   On the other hand is it really a surprise to live this drop?.  Not really, if you understand the game and aren't blindly involved in it.   Momentum stocks give it ,  but they also take it back ruthlessly.    If you're here, you know this quite well as you've probably been a victim more than once and it doesn't matter if it's a momo shipper or the headline grabbers of AAPL and RIMM.    Live and learn.    Same holds true with stocks.   Maybe some of you were beaten up yesterday, but you should only blame that greedy bugger that sits on your shoulder as you sit in front of your trading platform.   We've had an awesome week here from the STV, VMW, FREE and the shippers to name a few.   Plus...the morning was great, more of the same and some new recent additions like MHJ to 16+ from 13 last week, GLDN to 68, CETV to 103, EDU to 70, all spiked and we had one for the scalpers in HSWI for a possible 20-25%.      But wait...ask yourself the question why were the markets up in the morning?.   Did the blue light special just go off?.    Think about, we were up on Wal-Mart!.   Since when are we gauging this market on this relic!.  This is froth when see the whole market gap, run up the Wal Mart aisles!.     Simply, 'we' the market set ourselves up,  we ran the market blindly yesterday and the days leading up for a mighty profit taking reversal.   The suspicious thing of this is it comes just days before the big tech stocks report.    A coincidence?.     Maybe a pullback, correction now so the big boyz get some cheap now and then rally us into Santa's lap?.    The idea of the indices going straight up from end of summer after all the turmoil till the end of the year, just doesn't fly if you are at all realistic and sane.    So just thinking out load that this is a short term ...much need breather to fuel up.   The DJIA respected 14000 as it did last week,  if we go below and start holding below 13950, we could be in for a further ride down.    Lots of possibilities now, lots of spin..lots of noise.   It's all about the big caps techs and the reports coming up shortly.    You just saw what a little noise can do yesterday, close your eyes and see the damage that can be done if these guys start disappointing.    Next Friday is the 20th anniversary of you know what!!!!!BOO-HOO!!.    There is no harm of staying clear until you know and see more.   Much easier to jump on a moving bus than sitting in one and waiting for it to move in the direction you want..we all want.   There is always 'only' a need to take profits in stocks.  If you already blew this opportunity for yourself this week,  you might want to keep a few pieces to possibly catch a bounce.   It's up to you.   Just know your stocks, know their capabilities...their stress level, their sensitivity to market conditions as they arise.

Also note, WBuffet is selling some of his large China stakes. Oh boy.   Is this more of the political angle involved with some of his holdings or is this what his view of China is in general?. hmmm.  Surely, the spin will start from this to scare you silly.

Tech stuff this am..ORCL M & A news,   AAPL tgt raised by MS,     IBM estimates raised by JPM before next weeks report...as if yesterday's tech wreck didn't happen;).

DJIM #42 2007

Here we are DJIM clan, the week we've been all anticipating as the tech giants start reporting...INTC, YHOO, EBAY, IBM, GOOG to give this market its course.  Somebody(s) wanted to start early Friday by showing that Thursday's beating was nothing but a mirage as noted in the last lines of the morning Journal.."Tech stuff this am..ORCL M & A news,   AAPL tgt raised by MS,     IBM estimates raised by JPM before next weeks report...as if yesterday's tech wreck didn't happen;)'.     This was was followed with Oppe' giving GOOG a $700 tag.     Aren't these guys off Fridays?.      Guess with a Blackberry you could shoot off a price tgt increase/ upgrade from anywhere these days.      Coincidence of all these coming out on what is usually a quiet Friday scene,  plus M & A activity tossed in?.       Doubt it, these firms are seemingly gonna do whatever they can to grease this market higher it seems,   maybe we're being set up for a final push into the end of '07..a push that could leave us all hiding in the bush for a while when this all ends.  lol.      Anyways...all we could do is take it one day at a time here and therefore we are all playing it smart....right?.     Without panicking on Thursday, we noted in the last half hour to let this market drain, "the market will still be there tomorrow and the noise will settle'.     We were asked by a few of you to give our interpretation of the steep and quick turnaround from the techs and that is what we did before the open the next day..     Well...it actually started with our AH Alert on BIDU and the BS surrounding the JPM report on it and the match it was on the box leading to the tech's fall.    Maybe the big boys wanted a fire sale just before earnings this week just to load up, maybe that's why the barrage of activity from them on these names premarket the next day.      If you weren't taking profits Thursday, well then you probably made up your paper losses by holding through the night.     Maybe you even added more as the bus got gased and you added to your positions into what turned out to be potentially a very profitable trading day.   Hell...just if you got on the BIDU bus once or twice it would have been nice.   We're not Cramer with a $500 push for BIDU late in the day, we don't care what is does today or tomorrow, all we try to do is give an early lead on a stock and maybe if you agree and see the ducks line up as they did with tech upgrades, then you will shadow us into the play.   Okay... We need to put last week behind us now as the EPS story starts to unfold,  but there are few quick stocks to note off the close last week...

CETV, looked sweet as it broke through the congestion noted at our $98 alert.     It had a nice afternoon as buying picked up and it closed at $104 mark.    You couldn't ask for a better chart on the daily and weekly leading up into earnings for this stock or any stock.   You might recall when the market was taking a beating, we discussed the potential of money flow into Chinese, Russian stocks, half of the BRIC.    On Friday, our GLDN reached another high off our last alert on it at $82 to $89's and it is taking the other Ruskies with it... VIP and MBT have reached new heights as well.      Another one followed here closely all the time because of its volatility and ability to shoot a moon shot intraday is WBD, the Russian dairy/beverage co.    It  had a beauty of a walk up Friday as you could see by the intraday chart.  This one could give it up just as quick always remember,  but the way it was ladder walked for 5 hours makes you wonder what's up.     It never trades so orderly.   Just like the Chinese stocks, we are continuing to favor this Euro flavor.

Speaking of the Asian stocks, if you look at the charts from this weekend, you'll see the potential resistance on the HANG at 29,000.   Have you seen the overnights?.    Unbelievable, these markets have no respect for any resistance, any potential top.  It just did a drive by and gave this 29,000 the finger!.  So what does mean?.  Well,   just potentially another day to trade our DJIM names.   There is a name that has crept up the last 2 days and has offered a whole lot of gain % potential.    If you didn't catch it Thursday, maybe you caught it on Friday and if it rides the train further off 2 consecutive volume days...well then we might get a 3rd day of opportunity.    Again, this HSWI falls into the speculative and does come with a warning, even though it looks to have some of the volatility subsiding and something might be cooking as its under accumulation it seems.   Icahn, making lots of headlines recently. EJ traded stupidly at first too.   Not saying its a EJ,  just how it traded in its first weeks when you had no clue which direction it would go on any given day.

EDU, a few nice points off the note on it in alerts Friday midday and going on the limb here at first glance over the report and saying this is a great report this morning!.   Still...remember let the market show you the way and if they agree with us, the bus will move and you will consider jumping on.   Why does this look good?.   Besides the headline numbers of beating by .12c  (91mln vs. a lofty 79c)55% growth YOY, 81 mln in revenues beats 72mln and is 42% growth YOY.   The kicker is a very nice 30% enrollment growth and 40%+ operating margins.      Sales growth of 42% and 30% enrollment means efficiency and power.    In our opinion, this is the barometer (enrollment)with operating/ gross margins that you judge this stock on!.   Hey, we went on the limb early with WBD recently off earnings and it payed off big quickly..lets try again.   Yes, this baby China was once $20 dollars here, she's all grown up and kicking on all cylinders.   Still...there is a CC to follow premkt.   Let the market show you the way.   It would be rude to have sell the news in this report, but who knows..lol. Good to have the Asian markets possibly lead this as well. 

We did a lot of selling into strength last week as we prepare to have cash readily available to barrel in on new plays arising from earnings reports. This is something we always preach here as we settle into another earnings season.   Have cash on hand!.   For some of you it might be a problem cause you've become infatuated with a big gainer such as DRYS, TBSI etc over the months.    Just remember, she can always dump you first from the lofty perch you have her sitting on.  There is a big derivative market here placing bets in the Shipping industry, you're with the Hedgies here big time and it will probably get more volatile as time passes.    At least consider lightening up some of your recent big winners into EPS season.    We've provided a look recently in the Journals as to the things to watch and be aware of when considering a headline EPS number.    We don't doubt the Shippers and stuff will be in play, but we have worked them over and over here and hopefully it is now time to discover some new blood and start from the bottom and watch them climb, just like we did with all the DJIM Shippers, China, even Russian plays.  We want the easy play and that usually starts with getting in on play before the herd comes marching in, sometimes it takes days or weeks...sometimes just a few minutes.

Cheers' mates!

Google effect

There is really only one company reporting tonight that matters to us and it is an important one, google!    Well, at least we can say that the results and the ensuing after hour action isn't disappointing.    With google at this price level and people aren't disappointed about its growth prospect and are willing to pay up, this only gives us a clue of the status of this market.    Yes, the big banks may give us some headache like headlines but we already expected that from them.   Banks are capable of taking this kind of earning hit(hopefully one time) and in our opinion will not impact the overall market that much.   This is still very much a growth dominated market.    We dig technology stocks as well as shippers and solars and any other sectors that's considered growth oriented.     To put this in perspective, many participants including DJIM traders believe that there's still quite bit of upside left in this market.   The key, of course, is to realize which stocks are the driving force of this market and stick with them at all time.   It's been a while since we have these many stocks that are triple digit or approaching triple digit on our watchlist.    This simply reflects the kind of activities that are going on in this market and we better be there to take advantage of them.

Right now, the last few days of weakness feel like nothing but a minor pullback.   In this case, strong stocks should be bought on dips aggressively as long as they are technically intact.   There's really only one way to play a bull market, you buy on dips and you buy on breakouts.   DJIM traders have been very aggressive on the long side the last while and we'd intend to keep it this way unless something dramatic happens.

Now onto some plays...

ASTI, exactly one month ago, this one pulled some stunning move and did a double within a matter of a week.   We definitely like to see the similar kind of movement this time around and so far we got a wicked start today.   This move got kick started by the news of insider buying yesterday and our beloved Briefing picked it up today.   Yes, it's in play and it's a hot one!

YTEC, for some reason, it just doesn't feel that this runup is over.   It's looking more and more like it's trying to setup for another run.   We are still holding our position and with the 9 ema catching up, it may just be a matter of days if not hours before it gets going.   It's certainly capable of doing that.

NTCT, this is a stock we've been watching for a few days and we finally jumped on it for a small position as it isn't pulling back from the recent runup.   This one has very good IBD rating but we feel in order for it to have a shot onto the IBD100 list, it will depend on its results next week.

Shippers,  EXM/TBSI/DRYS all had a good day and especially the first two.   This is really about how high these things can go as oppose to when they will stop going up.    We think the only reason that can stop them is when they forecast a slowdown in their business.

Besides all those usual suspects, we also like the action from GLDN, GSOL and ANW today.    Bottom line, keep an eye on all of the high flying stocks on your watchlist, as soon as you feel the consolidation is done, it's almost certain that they can go nowhere but up.  

...a RED SOX market!

Funny thing was happening after the bell...our grandfathers brokers (maybe it was actually grandson, Junior) calling us looking for the old grumpy man...Why?... supposedly MSFT finally broke out!.    Last time these guys called, they were using a rotary phone and mailing share certificates .    Seriously...how cool was that!.     Even us,  the Bubble and GOOG trading generation were up and cheering for the MSFT trade!!!. Go $34...GO $35  GOOOO  $36...maybe even GO $37 today.   The volume was incredible and it takes that to move a horse the size of 'Softie.     It wasn't about getting in early to make some dollar, ( and it wasn't a dream u saw a MSFT and AMZN alerts the same day, either), it was just pure fun to watch!.....This was about cheering for everything that got us interested in trading!.     It was also cheering for a technical breakout seemingly years in the making,  it was a big cheer that maybe MSFT can be looked like a growth stock again in some circles ( not DJIMS..lol).    All we were thinking as said AH's in a roundabout way, every value investor and manager woke up to this report or will Friday morning.    Sure many are selling the dead wood, but many are getting on the horn and gloating how great they are for the family stock book... so buy more!........ Not only was this a value safe stock,  it's now a growth stock ..Geez..lol...you gotta love it.   What we tried to point out before all the analyst stuff hits is imagine a company followed by every firm on every side of every ocean beating by .6c....we are talking a billion+ revenue in a Q more than expected and the guidance was sweet as well.    Look.... all we have been saying is let this market think earnings and put the other stuff aside.    We've tried with GOOG, AAPL....wouldn't it be something if MSFT actually provided some calmness.    Right now... this market is fighting hard, bullying its way back after every slide.     It's a Red Sox market.    The comeback kids!.    It`s a warrior and why we keep buying, hitting the intraday SPWR, GLDN trades and working our watchlist hard on a daily basis.   There are outside forces working this market,  it has no right to fight the economics of it all...but it does with a helping hand.   A shrinking dollar and a crap market into XMAS makes no sense,  if you have any sense.    Mysterious powers are at work!.   Keep playing along with it.   The action Thursday was 'again' impressive, as we reversed after the 1:50- 2pm start flush.     Honestly, we can't keep harping in Journals to the daily volatility,  let's just accept 100+ /-Dow and 25+/-  point NASD days are old skool.!!!     This is intraday stuff now and we don`t think it was a good day or bad day till we see 250 +/-and 50 point days at the close.    This is the hip hop generation and its come to the market with jolts and bolts intraday.    It`s a thousand beats per minute and it could leave you spinning and empty handed if you panic or it could line your pockets very nicely.     If you are invested this morning , not scratching your head and bailing out daily, today's open should be a nice reward.   It doesn't really matter what you hold as all should benefit early on,  including the foreign stocks as the markets overseas take in the MSFT hoopla as well.   Yippie for MSFT...but we'd like to give congrats to GLDN, a long running member of the DJIM family hitting the $100 plateau during its 8-9 point move late in the day.  

DJIM #43 2007

RIMM, GOOG, AAPL...... then there's MSFT!    The pattern seemed to be fitting until last Thursday.    Microsoft, a company which isn't known for delivering stellar reports and forecasting strong growth in the longest time, basically dropped a bomb that would surprise even the most optimistic bulls.    Of course, we are talking about an upside surprise.    Regardless how we interpret Microsoft's reports and how much we believe in its rosy forecast, it is what it is.    In the world of trading, this is the kind of news that can simply completely change our trading strategy.    In our opinion, Microsft's news is that powerful and we better be prepared for the kind of market that might follow.

Oh yeah, there's still that housing bubble and credit crunch worries and potential huge losses from the financial sector.   By the way, Country Wide Financial just forecasted a return to profitability for next quarter and there's shakeup in one of the biggest Wall street firms, Merrill Lynch.    Problem solved!    No, it doesn't mean that the actual problems are all being resolved right now.    It just means that there's drastic measures that are being put in place to get the things going, an improvement!    It's a process that we are going to be witnessing for months to come.    As long as smart people in those places are doing things to help recover the losses, that's the kind of confidence market will be looking for.

By the way, did we just mention things are still kicking in the growth sector?   Now you can add Microsoft, an unlikely candidate, into the mix.   It's a company who does close to $60 billion of revenue in the technology sector annually and it's forecasting some wicked growth number.   Enough said!

What does this mean to DJIM kind of stocks?    In case you haven't noticed lately, DJIM selection of stocks have moved away from the ultra small caps to some relatively big small caps and mid caps.    Why?   That's where the action is and we are simply adapting to the trend.    Having a flexible mind and approach to trading is one of the must required element to survive in this competitive business.    We don't want to categorize ourselves as small cap specialists, we want to be trend specialists, and so should you!

The bottom line, market is moving higher and there's simply no reason not to keep biting.    Fed is likely to lower the rate again in the coming week and that would give some more conviction to move the asset away from the interest bearing instrument into the equity market.    Dollar is at a all time low and that's an incentive to attract foreign investment.

Now onto some notable plays....

LFT, to simply put, we really really like this IPO!   We think it has the potential to be the next VMW.   We think there's several factors that have a lot going for it.     First, it's the number one IT solution provider within the domestic Chinese financial sector.    You can verify it with its prospectus which is available on its website.    Secondly, we can't recall any legit Chinese IPOs within the past couple of years that have done badly, at least not the ones we picked up early on like the EDU, MR (also NYSE listed).  Thirdly, this one is very unique in its place among the Chinese IPOs where we think it's a huge institutional attraction.    If you want a piece of the Chinese growth, in one of the most profitable sectors(financial sector), where a company that does things to help the expansion and integration of their services, this LFT is the one to get.    Again, the actual financial reports is within the prospectus and you can see it for yourself.      So our game plan?    We are treating this one as a good long term holdings in our account.   We'd try to establish a sizable position as a core holdings and trade some small sizes around the fluctuations.

EJ, believe it or not, one of the DJIM traders actually visited one of their brokerage office in Shanghai recently.    Yes, these guys are one of the biggest player in the real estate market over there.   If you think Shanghai's stock market is making many locals rich, think again.   The biggest market is still the real estate market.     Technically, this is a fresh breakout!   We do notice that this one has tendency to have erratic pullbacks and therefore you will always have opportunity to buy more.     HMIN continues to trend higher after breaking out recently.     EDU, was making new highs as well Friday.  BIDU flew off another $400 price target.   We do not understand the breakouts have no meaning, set ups not to be trusted, money pit comments in our Forum on Friday and we'll leave it at that.   These DJIM closely followedstocks do not fit these comments and the China's IPO's we cover were not setting up or on verge of a breakout as they are sitting off highs. 

GLDN, besides the late Thursday afternoon move following an alert it also exploded the next day to almost $115.   In some circles that could be a 20% lift overnight.   We have alerted this numerous times over the year and will continue to.   Pullbacks are a natural here and we will go back in size again.  This is similiar to the SPWR as well last week.  If you get these 15% or so moves in hours, you slice the pie up and wait to get in on another pullback.  SPWR proved what a strong quality stock can do late last week.  Just look at the last 3 days finishing up with a NCH.

GHM, remember to glance at the earnings play page so you are prepared for these oldtimers off DJIM at this time of the year.  Another stellar report and a gap up winning day.

November, finally....

So, Thursday's drop is the kind of action we should've gotten yesterday?   Perhaps some will say!    In all fairness, people should focus on the sector that is growing and making profit for a change.    It's unfortunate that we live in a world where media plays such a big role on every day affairs, including the stock market.     Today, we had the spin cycle start all over again.  As we said yesterday...we have things to do and that is only trade individual stocks and mute out the talking heads.     In our opinion, whatever things need to be done by those financial institutions,  just get it done and move on.     If you don't relieve the management team that's responsible for the credit loss of their duties, and if you don't disclose in transparency what you've lost,  you are always inviting those sneaky analysts/market pundits to jump on the bandwagon to call out a doomsday scenario.    Things just aren't that bad, we think!.   Take a look at MSFT, AAPL, GOOG, RIMM... and you'd see a pattern developing.   If you are long just those names in your portfolio/fund, you'd wonder what's with this 362 pt drop?    Ok, the names above isn't the entire stock market and they represent just a specific sector, but it is a very important one!  The point is,  if we all move away from the attention of the Citi and Exxon's, there are stocks out there that can be traded higher, with sizes.  Not just traded, but made money on!

The money comes out of a troubling sector will always flow into somewhere else.    This time around, yield is getting lower so the interest bearing instrument won't look attractive.   The only place you've got left is still the equity sector.     That is why we think the market is still going higher.    As we have said before, companies like Citi or Exxon can afford to take a 8 billion dollar shortfall in earning where as companies like Apple and Rimm can't.    Lets just move on with it....We do remain bullish, just understand we are extremely selective at the same time seeking out plays that produce like CETV, GLDN, SPWR big gains in short periods of time.   We are not holding 10 positions seeking out a paltry return from each and then falling hard on big down days like today while waiting for such.  As we've said this ain't old skool market, it's 250 DJIA ...50 NASD +/- days in the hood!  Selective...the right groups/ sectors is the game.

Tomorrow we have the job report and it seems media is playing it again as if the market can go triple digit either way depending on the outcome of the report.    Our game plan is that if the report sets a negative tone in pre market, we'd most likely go aggressive on the long side in the early going.

Some stocks..

CETV,  we've had some nice runs in $100 stocks the past month from GLDN, WBD, SPWR and of course CETV an alert buy Oct 9.  CETV already had am impressive run to $119 and with Wednesday's big dip we couldn't avoid it for a spec buy into earnings as per forum note.   If it wasn't for the selloff prior to earnings , we wouldn't have moved in.   The drop gave some room for error and provided lots of upside if the report was just good as it may go back to highs just off that.    Yes, we don't recommend buying into earnings, but once in awhile the temptation is there for a few shares.   Looking at the headline today this looked like a big miss on EPS, but the market action dictates and premkt it was trading up.     So the idea is to never just judge a book by its cover or in the case of stocks by the headline number.     Let the market dictate and do some digging inside the report and/or listen to CC to get the big picture before jumping in.   We noted some aspects of the report in a forum note while everything was getting beaten up, yet CETV was still strong and only a few dollars off recent highs.  We liked the impressive revenue beat of expectations and took into consideration the EPS miss was in large part to currency translations.     A few dollars here can go pretty quick and after climbing some more it then spent a lot of time eating at 119.50 before exploding to a day high of $126.50.   Yep, thats 7 points from morning note or about 16-17 off yesterdays low.  So on a dismal day this provided some fire power to offset a lot of the gap down loss.    At this point, we're resting CETV and as with the streaky GLDN's WBD types, we'll look for another entry down very soon.

PSEM, this is a stock which came out with a pretty nice report the day a few days back.   We like this name for the fact it's in the technology sector.   It also did extremely well in Thursday's environment.    This is a fresh name that currently sports a 93 95 IBD rating.    We will be getting more aggressive in trading this one tomorrow.  Note:  NTCT is also in play for IBD and as well as SIMO potentially.

LFT, based on the trading today, it looks as though it put in a short term bottom today.    There's strong reason to believe that any weak hand who's holding this one would've been shaken out today, as evidenced by the drop around 2 o'clock.    Toward the latter half of the afternoon, it looked as though there's a bidder or two sat there and scooped up all the shares that's available which inevitably caused a rush to the upside near the end.    This isn't to say that this play is ready to bust through $30 and beyond right away but we are very encouraged by its action last couple of days, given the circumstance of this market.

STV, does anybody feel there's just a magnet at $38 for this stock?   The company announced that it's releasing earnings on Nov. 15th and we are thinking there's a high probability of an earning run prior to that.  Notice the last minute finish as it climbed and actually hit $39 before some fancy footwork a few times to get the final trade back to $38 even. 

GA, in terms of profitability, this is probably the most profitable Chinese IPO we've seen in the recent history.    This also explains its giant offering of 57.2 million shares.    We are putting this one on watchlist to trade as it did extremely well relative to the market action today.   Given the size of the offering, the action looked pretty impressive.   Just don't overdose on all these China names that are fresh.

Some notable EPS to investigate, potentially watchlist this morning..NRG, ATRO, NTLS, ATNI, SWIM, GFIG, HAIN, MR