Petro-Currency

Growing up and then trading from Canada,  we'd never think we'd see the day the CDN$ reaching parity with US$....guess, they waited for us to be nice and far away for the historic day!..lol...OK...now back to the US markets we trade, a market we've had to greatly outpace just to deal with the greatly appreciating CDN$ over the last 6-12 mths.   Luckily our goal at DJIM is not to produce paltry returns in the single digits or the teens'. Anyway back to the pitch as the futball fans know it as ......living 3 minutes away from the Chelsea pitch on afternoon game day is quite the experience for any sports nut...or drinker!!

So...yesterday was hardly unexpected after the sprint we've had this week, the valiant effort of many to keep it where it was most of day was good to see.   Somewhat surprising was to see dip buying come in so early at times.    It would be a victory of sorts if we could end week basically unscathed without a serious short correction with the loss of momentum.   Despite the small caps, mid caps indices leading the way down in the afternoon, we were pretty well and running from the morning with our niche of players we had you following and hopefully trading.

MELI, LULU, WX, the trio we gave before the open outperformed anything and everything off the bat.   MELI steamed from the 33's to 38 and considering the force of the move maintained its lofty intraday perch and closed at 37 and change.  After 2 days of action, we know this is on radar now for those into a little action.    LULU and WX sprinted to new highs as well from the open.   If some of you want to trade broken down stocks and patiently wait and wait for the all mighty bounce....the best to you, but as part of the DJIM methodology says... look for the strong,52 week highs, which at more times than not is the easy play!.    These 3 had all these colors after their strong showing we pointed out in a market that was treading water the day before.  Wondering if Cramer put on some Yoga gear to demonstrate his bull-ishness on LULU last night..maybe a LULU thong or the LULU Hot shorts!.   Sorry to make you sick in the morning...

EJ,  we think we have walked you through this trade in the past week or so.   As we've been saying the accumulation is most likely a forward to Merrill Lynch's initiation of the stock.    In many a traders eye, the play could be over in terms of they got what they wanted this week and moved on.    The 22 level was a no a technical no brainer and was an exit door for some.   This is the one reason one should use charts, to use them as a guide to where you might find resistance or support for your stock.    The Merrill Lynch initiation will come today, we hope its enough to fuel this some more and at least get it on radar of more money.     Don't expect anything to send this to the moon though.   Just like pre-earnings runs, this might have been a pre-coverage run led by those in the know...we'll see shortly depending on the $ tgt ...if they give one.

APOG,   this one we bought into and as usual with it maybe a little early at 26, as it did its traditional yo-yo action on day of a good report. Every Q this one seems to beat and we were waiting for the exact action we saw later as this moved from 25' to high 27's intraday and finished strong.  The potential in this stock short term is in the charts. You can easily see the last two reports on gaps and then the follow through to higher ground.    Not sure why this got so beat up during the summer and frankly don't care after these earnings.    ----------------                Reports Q2 (Aug) earnings of $0.40 per share, $0.04 better than the Reuters Estimates consensus of $0.36; revenues rose 19.7% year/year to $217.7 mln vs the $209.1 mln consensus. Co raises EPS guidance for FY08, sees EPS of $1.43-1.53 vs. $1.50 consensus, up from $1.37-1.47; raises FY08 revs guidance; co sees revs growth of 11-13%, which equates to ~$887.1-903.8 mln vs. $877.17 mln consensus, up from revs growth of 10-13%, which equates to $879.1-903.1 mln. Co says, "We remain optimistic about our businesses and markets served, and are positioned to meet our longer-term objectives of 8% annual revenue growth and 20% average earnings growth through FY10. Our solid year-to-date earnings along with our strong backlog, commitments and bidding activity give us confidence in our ability to grow revenues and earnings through FY10.

LWAY, the chart was getting our attention the day before and the open, even on light volume showed us some potential....simple as that.  A nice move ensued and volume was pretty good on the day.   Hopefully, the chart came to a few more overnight and we will have some follow through action today.

LDK JASO MR ANIK ICOC GS ,   top out our trading list for Friday.

...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.