Eyeing the range...

Regardless what comes at the newsfront, we believe alot of traders would be eyeing last week's high and low as the sticky point to trade.    Unfortunately for traders, those sticky points amount to almost 500 point range on Dow and about 100 point range on Naz.    Such is the life of traders and this is what we have to deal with.    In our opinion, this range bound trading can last a long while and we have to get ready for it.

Today is the first day in a while, well it seems like in a while, that we've seen less volatility from this market.   This is a good thing and less volatility definitely gives confidence back to traders.    The more orderly the trading becomes, the better looking chart setup we'd get and better probability comes out of each play.   Well, so far we can only hope that is the case and we'd get some more opportunities to trade.

here are some interesting plays we are looking at today...

CRNT, after some very volatile trading in the past three days, it seemed to settled in somewhat today.    Good thing for this one is that it's now back above 9 ema and above $15.    How firm is this price?   We don't know at this point and we'd have a pretty good picture next couple of days to find out.    What is worth noting at this point, however, is that the play doesn't seem to be finished.   As long as there are crowds willing to push it for that IBD100 listing, we can certainly take advantage of such case and trade a point or two out of it.    The most important thing here though, is not to get greedy and remember this is nothing more than a play.    This one looks to be at a pretty good range bound between $14 and $17.

JST, we noticed the earning release from this one in the morning and couldn't help but started a small position.   Well, at the time both indices were well into the green.    What we like about this one is that it held on to its gain and even attempted to run up even near the end.    Its earning didn't seem too bad to us either since both its revenue and income are at the record high.    Of course, this one isn't new to us and if it moves, it can really move.   We are putting this one high on our trading list at this moment.

STAR, this one seemed to enjoy the day far better than many other stocks.   We like the kind of business it's in and the fact it broke out into a new 52 week high is also a huge bonus.    We got a starter in this one and will trade accordingly.

WX, this is almost a brand new stock.   It only traded for three days and again we think this is the kind of stock that may not be affected by what's happening in our financial market these days.   The co. of course seems expensive in terms of valuation but really we haven't found one recent IPO that's trading at a reasonable price level.    It's all about perception and as long as "the crowd" likes it, we'd play along with it.

BIDZ, perhaps it's our bad that we didn't notify everyone that it's releasing earning report tonight.   Well, guess it's ok to slip one through once in a while.    Company came out with earning and forward guidance after the close.   We actually like the number and its guidance.    What we want to point out is that another company NILE has enjoyed lots of success with its model.   There's always the possibility that this one is gaining some good growth in a big market, even at the expense of others.     If it wasn't for its earning report tonight, the setup looks great.   We do have to see if it gets run up tomorrow or not and reaction is really unpredictable at this moment.    Basically, keep a close eye on this one.

FCN, finally, after some much needed pullback on Friday, this one again regained its footing today.    Perhaps couple more consolidation days and we can get another strong runup going.

Tough but understandable...

Well, at least we know why some of the money market funds are earning higher yield  than others.    Joking aside, this is becoming a difficult market to trade(flip) when a sudden drop of news can literally derail whatever the bullish momentum.    Good thing is that we are pretty much used to this kind of volatility by now so today's action is not that surprising given the circumstance.     Basically, you have to flip into strength as oppose to wait till some bad news comes out that'd drop the market and your stocks along with it.   Sell when you can!   We have to be very vigilant about taking whatever the quick profit we may have on the table these days.

The way this month is going so far, it's going to be in the history book as something to remember.    Right now, the game plan is the same which means we  leave very little on the table going home on most nights.    The only exception is that we have a strong close like yesterday and only then we could have a strong case of carrying some stocks for a potential flip the next morning.

Here are some plays....

JST, this one had some very good follow through today and closed pretty strong too despite the dreadful index performance.   For us, if it isn't showing sign of stalling, we are sticking to our long strategy and added some near the end.

VMW, we have put this IPO on our watchlist today as we think this one will generate quite bit of interest days if not weeks down the road.   They claim this is the biggest tech IPO since Google and we'll see about that.

ARCI, we bought a little bit of this one late as it's showing some good relative strength in a very weak market.  To top it off, it closed at a new 52 week high with a break out.   Again, this one is small and may not be for everyone.

SIMC, this one came out with earning very late in the day and from the look of it, earnings looks to be decent.   However, given its past performance, it remains to be seen if this can get any kind of trading interest going this time around.   We'd find out more tomorrow.

Calming down..

It seems that the volatility of this market has eased a bit.    Despite the intraday swing of the index, many of the plays on our watchlist do seem to calm down somewhat today.   We like this behaviour and this is the kind of mood we'd be able to deal with.     Even though the breadth is pretty balanced today but we somehow happen to have quite a few green ones on our watchlist.     This of course does not mean everything is playable but it's definitely a start.     Having a long list of stocks in green do give us somewhat of a comforting feeling to perhaps step back into a play or two.    This is supposed to be the follow through day and we also mentioned yesterday that we need a day or two to digest which plays might be worth playing.

Here are some plays we are looking at today....

VMW, we don't think the enthusiasm has died down from this IPO.    Again, if this one is claimed to be the next big thing, it should get some good momentum going as long as the techs in good shape.   We are watching $59 mark closely for a possible break there.

WX, this one did very well today and we chased some near the end.   We actually like some of the recent IPOs and they are faring this volatility pretty well.

JST, surprisingly, it held up really well today off a gap up.    We are watching this one with some great interest and want to see what this one is planning to do after today.

FSLR, can an upgrade be able to bring back the former glory out of this play?   One thing is for sure, there will be lots of resistance ahead of this one so expectation needs to be realistic from the bounce.    We are merely playing quick points here and until there's some improvement in the entire solar sector, it's just going to be quick point play off news.

..Off-Roading

Hope you had yourself a good 4X4 yesterday for all the crazy bumps and bends of the market pounding your kidneys!.   A good seat belt might be in order not to get dismounted as the noise from all headlines is over bearing the earnings reports from the big names at this time.   As we said before the open yesterday, we can't do anything about the noise and just have to go on trading what is in front of us and hopefully working for more than a day trade.   Despite the jitters still prevailing in the market arena, opportunities were still there on the stocks we've been tossing out...

WBD,  ...this was one stock that required no seatbelt yesterday as it glided avoiding all the potholes others were encountering.  Just the day before we noted its $110 top and the moon shot came of 10-11 points from the top break.   This might have more legs as it made a NCH, but we know it's trading history well and always put days like this in our pocket and dismount.  We'll be back, especially if it holds these levels in the days to come and sets up again or if it shows signs of working the NCH higher.

"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. "

YTEC, now you know why we said this has momo trade capabilities.   The quickness and steepness of its late day charge shows what we might have on our hands here,  with it you have to accept the early action as a characteristic of such stocks.   Just have a barf bag in your 4X4 handy.  This China IT and outsourcing co' has a knack of reacting nicely to any news it throws out.    Considering their business is with the thriving bank business'',  you can expect this stock to be a possible PR machine of contracts that will jolt it constantly.     We noted midday these momo stocks do not play to a schedule, meaning if the indices are popping it shouldn't be a surprise they are not following along as we saw in the morning and then eventually an eye popping move late in the day when the markets were struggling.    As far as its fellow country bud, JRJC,   it basically followed the path of BIDU and many other stocks gapping and then steadily coming down.    The reason we book this with BIDU, is its in the same universe you could say.  It's from China and has the momo trading flavor of BIDU type...simply after its recent ride we know its capabilities to move and draw attention of traders just like BIDU has over time.    The 60min shows higher lows, a clean and jerk over $40, meaning a good close over $40 would give this a nice looking daily chart and most likely some much anticipated action again.    The risk should never be forgotten with momo stocks, we've also seen this side of JRJC.

The other names we are trading and/ or top of the trading list are all familiar DJIM names.... EDU CETV HMIN LULU BCSI GLDN VMW JST.  RBN off EPS and VMI, always seem to appear here after earnings and both do so again.

Even though trading opp's are all over the place, a day without some many bumps in the road would be a welcomed sight.....Yeah, right..as if!