..wavering

The action that we noted as unremarkable..out of breath?, the last 2 days showed it's colors yesterday as the high flyers of last week were wavering from the start of trading action yesterday.  As the market indices moved higher the stocks we closely follow... a few examples DRYS EXM EJ WX GRMN and a bunch of others were just boring.   Usually this is a sign for us to dwindle down our positions in our niche as many times they are a precursor to what the market may do.  The difference now is it is Q end and as we've been saying from last weekend the vibe should be good and so the chance of a decent pullback in the markets is remote the last days of the month.   Still, this lagging action in almost 2/3's of the stocks we eye closely does not look to give us an opportunity to look for further upside in many names into next week.    Right now, we'd be trading hour by hour, if some stock looks promising in the morning with volume it might be worth a buy in,  but that comes with a sell out most likely end of day.   We'd monitor yesterdays afternoon lows on the indices if it comes to that as a reason to get out.   Yesterday, we were somewhaton the ropes as we slipped to lows of day and then a timely report came out of a Buffett stake in BSC to get everyone's juices going again.  We'd be selective now in our choices, or frankly take a shot at some of these Chinese spec stocks for a whirl on a $2 dollar ticket. INTN?.  It seems fresh enough and undiscovered by the China spec herd.    Our else load up on GM or some other DJIA stock if you think you are missing something late this week. lol.  No wait, GS is plenty to get through the day if you want some big name to toss around.  JRJC is the one on the other side of the spectrum to keep trading. LDK, the primary play and the other solars still are playable. These are the same we'd concentrate on today most likey if we want to play.

We'll wait to see how the premkt and open shapes up and then decide if there is anything out there to chase.  The possibility exists that unless the indices breakout over the 14000 level in the short term, we might have some range trading and therefore a lack of potential breakout to the upside that would extend to our stocks under coverage.  Therefore, a lack of easy trades and phantom breakouts in the short term.

...Mirage

A mirage..that's all this summer subprime crisis was!. A big head head fake just for some to buy lower and then have a meteoric rise to new heights...distortion created with lots of blowing of cold and hot air!. Okay, maybe not completely true but how else do you explain this recent rebound, yesterdays possible breakout moves off what could have been perceived as bad morning news.  The subprime news, the Citigroup headlines had no impact on the markets.  When was the last time we saw this?.   We've turned on a dime with every headline from this front....but not yesterday.   This is old news simply and the market wants to get on with earnings and what is generally the best Q in the markets.   A beneficiary of this market was plain and simple to see, one niche was the DJIM covered plays that blew past the competition.  A simple point to our trading methodology is to have a sane niche of stocks to follow, not an insane number that can't be watched closely enough to recycle. This is why we have a watchlist/play list that we hope you follow.    It saves you time and money.  Yesterday was a day for our beloved..

FSLR, an alert last week to a potential breakout move this week was the solar play to be in.  The other two we closely follow, LDK got 'briefed' to death yesterday on it's equipment pushouts,  JASO did nada and is selling more of their ADR's this morning.  If you shadow our plays, you saw we were only on FSLR back at this time.

GS, noted the tight range of trading the previous two days in yesterdays Journal.  On a good market day these ranges can balloon to the upside and this is what we saw here.  We are about collecting points and not the % gain, so to us this was up to a 8pt move yesterday. With FSLR and GS there was almost 15+ pts from our final remarks on Friday and yesterdays morning Journal highlighting them.

DRYS, EXM continued forward to new highs with some IBD print on the sector and a couple of price upgrades in the morning. TBSI got back in the hunt and is close to highs.

MR, EJ, moved to new levels and JRJC proved to be a worthy trade for those familiar with it.   Now, we just ask WX to get some game and it will have our most recent China plays on even ground. Oh yeah..where was BIDU yesterday?.  Lets no forget this rocket ship when looking for a good intraday trade.

VMW, we don't cover much tech, but VMW has been the one we have traded the most.   Finally..this one is acting with the sector which is leading the recent parade and not playing on its own terms. $90+ is in reach now.

ROS, GLDN our Russian telco plays are not be forgotten as long as they cling to highs and therefore offer more upside potential in the near future.  WBD moved to 114 intraday after it was noted as a possible reversal play from 111's. This one provides some volatile thin action with some large spreads. the worst thing you can do is put in market orders in this play.

ANW, LULU cover the ipo watchlist here.

LWAY, we don't know what rumor was out there but this recent play was a hurricane yesterday. Congrats to any that have held through. Yesterday was exit day.

CSCT, the chart looks good but we have to keep mum on OTB stocks or we will have a flood of them on the forum. Sooner or later a bad one be printed on the forum and will cause a few to drown, so we try to avoid till they are listed.

As important as finding the right and easy plays, it is just as important to think out load and give our thoughts on plays like SSTR, even if you won't like it.  We're not talking about your Mama, we're talking stocks here.!    Hopefully, we saved some of you some cash yesterday.   Anything could rebound, we just have no interest at this time.  

We'd also remove GRMN off our watchlist. There are too many unknowns here now.  Last week gains look like a set up to the news yesterday. Those shorts got something to cheer about yesterday.

This probably covers 80-90% of the plays here recently,  if you don't have all day to peruse the entire stock world for plays then this list is all you need to carry you and your book.  It's not a lot of stocks.  This is just a reminder and for those that are new here.   Days like yesterday are the icing and come around quite a bit.   Just have money on hand for fresh stocks this new earnings season, as we noted in our last alert.

Bulls on 'roids and Pigs can fly..!.

Those seem to be facts now!.   This is what we saw yesterday as the Chinese bulls roared off the Asian markets, even when left at home alone with the SHANG on holiday's.    With every Bull shot there is a pig in it's footsteps.   Meaning speculation on junk ones was wild and you need to be careful at this probable late stage in the game.    Back at the ranch, the market was doing better than expected with not a lot of profit taking.   We added this footnote to a post before noon,  "Considering yesterdays action this hasn't been bad at all or meager for the small caps /RUT been green most of the day. Bunch of those sorts here having good days WX EJ BIDU JRJC LULU MELI ROS GLDN FSLR EXM TBSI..AZZ might still " .    The day turned from good to very good late in the session for these stocks and a few others like GS, VMW, CSCT.    The market continued to trade sideways and finished mixed, yet for consecutive days now, we were in the right place at the right time.     Hopefully, our morning Journal steered you back home if you've strayed!.     This was the true Bull shot of the day, the DJIM index.    There is really not much to say heading into today trading, except that hopefully we all played these shooters smart and took some off the table.    This is especially true with the gains generated by the Chinese stocks covered here.    Even the good ones will get nosebleeds.

A member noted and what is probably a good way to understand the Journal is to see it as us thinking 'out load'.  One thing is to shadow plays, another is to shadow our mindset, which is probably the better way to go.     We can't give buy/ sell advice, all we could do is show what we are buying and thinking.    Hopefully, it rubs off on you and improves your trading ways.    When we noted yesterday.."Now, we just ask WX to get some game and it will have our most recent China plays on even ground. Oh yeah..where was BIDU yesterday?.     Lets no forget this rocket ship when looking for a good intraday trade.".    You need to ask yourself why are we even mentioning these two that under performed the day before.    Simply, we are thinking ahead and with a big overnight Asian market these just might come out and play with the rest of the kids.   Trading is so much a psyche game, you need to think ahead and think what others will or might do.   Your gig is to get there in the early stage or even ahead of the herd.   We gave the below leads yesterday, clues into where we might be leaning and why.  All you needed was one or two to have an excellent day.  The language is simple and we'd all should have been prepared..

TBSI got back in the hunt and is close to highs.

VMW, we don't cover much tech, but VMW has been the one we have traded the most.   Finally..this one is acting with the sector

which is leading the recent parade and not playing on its own terms. $90+ is in reach now

ROS, GLDN our Russian telco plays are not be forgotten as long as they cling to highs and therefore offer more upside potential in the near future.

WX and BIDU( wasn't all JPM initiation), it was a matter if you build it, they will come!.   The build up was the overnight markets and these were prime candidates to play in the mud with the others.    Anyways, yesterday was a day for us to daytrade these high flying Chinese stocks and it occupied most of our day.    Now, we need to get back to basics and deal with reality and concentrate on the others like GS, FSLR, VMW, AZZ etc.  The EPS winners and ones to come and the potential set ups that we can all get in early on. 

We all need to be a realistic after two days of solid gains!

BOMB- ay...the Turks are coming

Can't we just live in peace and drink up the US tech reports from last night!.  We've been beating our drum set in our gorilla suits anticipating the tech/internet earnings and now we get this stuff tossed around our heads!.   Geez.  Give us a break wasn't the subprime debacle enough!...Ah, the beauty of it all.    As far as the Turks and oil rocketing...doesn't anyone realize that the bulk of the oil is in the South and the pipelines in the North account for as much pipe as there is running from our toilets.    No doubt we will now get many attempting to get on the subject of the "Trick or Treat" due end of October by the FED as well.    Anything to turn our attention will be spinned to make the relevance of the earnings last night seem unimportant. lol.    We'll just reiterate what we said yesterday and that is to deal with what is front of us and pay no immeidiate attention to what geo-political, rate cuts etc. stuff we can't do anything about.    So..let's get on with the show and deal with what is front of us.   At this time...it is an up futures market here and we should all use it to our advantage in the morning...

YTEC,    this was thrown in recently on the forum amongst all the the China hype.    A big difference to many others that hit the board is this never got screwed by being run-up and then dumped.    Instead,  it has pullbacked slightly in recent days and then moved to its most recent highs yesterday and became a stock worth a try.   The almost quiet period it had, plus the reco by a firm recently gave this stock credibility in our view, something most of the recent gunners never had and therefore are sitting in the pump and dump category way off their highs.    Part of our trading methodology is to buy late in the day after we see if the stock has what it takes to possibly continue in the day(s) to come.  This is something we have repeated endlessly and this is why we were adding substantially into the close.    We don't take big slices of a pie until we are sure and that comes late in the dayl.    We don't mind missing the initial breakout and miss some gains.  We're looking at the bigger picture and have higher prices in mind.     If you're playing in size, it's irrelevant to go in on the initial break.  It's an unnecessary risk for us.  We've all seen failed breakout moves.  A starter maybe could be taken to keep track.    We rather be sure and then cut ourselves a hearty slice!.    This is the way we play on what is especially a stock showing signs of being a momentum play as YTEC did late in the day.      Another thing about yesterday is the China stocks we have traded here with you, such as WX, EJ were not having good days but the JRJC and YTEC were.  Hmmmm....What we got out if it is a preference for anything China bank related and went with it. 

As far as JRJC,...it has spent days seemingly consolidating around the 9ema and yesterday showed signs of moving off those levels and grabbed our attention as noted intraday.  Last nights EPS results gave early indications of spillover as traders looked for beneficiaries such as BIDU, which climbed $6 or so.  As noted AH, we saw JRJC as a one of those that might benefit off BIDU ( lumped in with it recently ) and it had no movement in shares being bought up as it stayed under $39.  Do you want to buy BIDU 6 bucks up or do you want to take a chance on one that hasn't moved and might be taken on as a potential secondary play. We prefer the latter..

VMW, performed well yesterday after possibly a 3 day slide down that might have grabbed the attention of technical traders. After the tech earnings it's a no brainer of what stock could do well from our DJIM playlist. Calculate the trading action intraday into the picture and you might have a good play today.

Despite a poor showing by the market yesterday, WBD, CETV and EDU showed resilience.  Strong stocks doesn't mean only those popping, most of the time this kind of showing is what grabs our attention.   Why?...because if good news strikes as it did last night these types of stocks should still move forward even if they have nothing to do with tech.   If the news was bad, they have a good chance of showing resiliency because they just demonstrated such the day before.     Another name that got our attention late in the day is FSLR and we will look at it closely today even though our hands might be full already.  This being the case, we apologize to those other stocks that might be worthy of more print.

Fruits of the consolidation...

We now know why the market wanted to consolidate for the past few days, the market was setting up for action like today.    Ok, we have pointed out in the past few days that consolidation can be frustrating and not fun.    Fortunately, consolidation comprises down and up action.  Hopefully, today's action would make us forget about the frustration we had to endure the last couple of days.    Now lets recap some action here...    First, some of our members would like to know what's the point of recapping everyday's action at the end?    For starter, recapping the action would give us an idea what events and action transpired during the day so we can better prepare for trading ahead.    We can look forward to the plays that were doing well today, assuming good action gets some kind of follow through.    Secondly, by recapping the action, we'd have an idea exactly where we are in this market.     Compare to yesterday, today's events are much more exciting and meaningful, in our opinion.     By not having to review the action at the end of the day, we would simply start the next trading day half blindly, in a way.  It all depends how one uses the Journal, for many its been a learning tool of our methodology, our frame of mind.  This morning the Journal might have reminded you of SIGM recently noted here as a buy the dip earnings play prospect.  It had a great day.   Our lead was the China's and that we are still trading the lot of them.  This has worked for a week and today it spread to the more speculative lot.  Makes sense doesn't it that this part might try to get into the act sooner than later.  We also said the Solars heading into today are getting harder to see as an easy trade, today that spilled further as most finished lower than their opening price in a fast market.  Bascially, it's all in your interpretation of how you take the Journal in.  To most the Journal is 'leading' them into the next trading day, this includes recapping.

So it this market more of the same?   Are we expecting some better action in the near term or what?    We think today's the proof that we CAN definitely get some good trading action in the next little while.    This time, Fed is on our side and recent oversold condition coupled with the seasonal factor can and should propel this market to gain some upside ground.

Many big technology stocks did well today!  It's always good to see companies like INTC MSFT AAPL to carry the index weight.    As long as the Indices are in the firm green territory, we as traders can pick off little ones to make our play.

SIGM/PCLN/VIP/MBT, these are few of the latest earning winners we are busy trading today.    We have mentioned all of these before on the site, (a few for over a year) and they all notched a nch today.    This goes to show that even in a crisis environment, we can still have earning plays that stand out from the crowd.   We like all of their action and we'd expect follow through from them if the market keeps up the good spirit.    We'd also wouldn't mind buying these on dips as long as the 9 ema isn't breached.  If you want firm coverage reports on MBT- Russian mobile and VIP following it's earnings, send an email for the PDF's.

WDC, we noted this one following earnings Sept 11 on a premarket Journal note.  The stock was $22-23, today it hit $31 after raising its profit forecast including December.  In our view this a huge revision and a good market will definitely take note.  On the other hand this stock has performed well in rocky times.

China Plays, from early last week, we'd pointed out that many Chinese plays seemed to be stabilizing and we'd be getting our foot back into some of these names.   Today, the entire sector lit the fire and all of the names on our watchlist have done heck of a job with some speculative leading the charge.     Our strategy here is that since it's the entire sector move, we can not afford NOT to play even the speculative ones.  Just to point a few out, we still like EDU LFT STV WX CMED... as the quality ones but the speculative ones like CHNR JRJC EFUT... are also on our playlist.   Now we believe the move we seen today may last a few days because the last time we recalled, China sector move doesn't just pop one day and die.  Keep you eyes open for a possibility of more.

Solars, this is the area which we were concerned about heading into the day as per Journal.   We are a little concerned over the somewhat overheated action from the speculative solar plays but as well as the looming energy bill.    There's a very likelihood that there's going to be a "sell on news" reaction.   We'd like to see how some plays react to the news first before venture our way back in.    Because of many other plays out there today, we all can afford to take a little cautious attitude toward this sector for now.