Resiliency

Even Dow's winning streak has been as long as our Blue Jay's losing streak, we know that one of these days their respective streaks will end.   At least in the case of Dow, it's more probable.    Today's the day?    In a very dramatic fashion, Dow closed just 4 points lower.   This might as well be a winning day for both indices.   For those of you that haven't kept the score, both Dow and Naz were off to some good downside action earlier in the day and managed to climb all the way back.   Is this resilient or what?    Again, we will have another test tomorrow with both the CSCO reaction and Fed meeting.    In either case, we think this market will probably go higher still.  During this streak, the majority of the gains in the indices was in the first hour or so with the rest of the day seemingly distribution going on.  Today..that all changed as we saw another side of this market!

In terms of DJIM land, some of the stocks were down earlier but were managed to climb all the way back and some.   What we do here is to make a note of those stocks that managed to come back and those that did not.    For those that come back, we kept some and even added to some.  For those that did not make the afternoon rally, we pretty much cut them off from our position list.   Still, we had about a dozen or so stocks left in our account.    A day like today gives us traders a perfect vision of how strong some of our plays/picks are.   When the market is really green, it's just that much harder to tell.   When the market goes through a shakeup earlier and comes back, you do want to see your favourite stocks to perform exactly that and maybe then some.   If not, time to move on.   There's plenty of good candidates left and new candidates coming up down the road.   There's never no need to be hung on any particular play.   After all, these are just stocks, we don't have any sentimental feeling toward any of our plays.  Just a game!

Here are some notable ones...

NGA, this one definitely surprised us today.   Normally on a weak morning like we had today, a stock like NGA which had such a strong run-up would definitely feel some pressure to pullback some.   Well, it did, sort of, on very pathetic selling volume.   Maybe, everybody has the same play book as us or maybe, this is just one hell of a strong stock.    In any case, we have to be quick to recognize what is going on and act accordingly.   The action, of course, is to chase it higher.    We chased some from low 13s all the way to high 13s.    Bear in mind, we have also lifted our aggressive buy on dip points from low 12s to high 12s, or maybe even higher depends on how it performs next little while.   So basically, when our somewhat conservative attitude toward this one proved to be an incorrect call, we just had to correct our approach as quick as we could.  This is a high stake game where opportunities don't wait for you to make up your mind.   They come and go and you as traders, just have to grab them to the best of your ability.

LXU, this one reported earning yesterday and that was the catalyst.   Boy, would you look at the volume past two days.   This stock has never traded this much volume according to our memory.   Believe us, we have followed this since the $8 range.  It was one of the first DJIM Journal pick entries back in August 2006 or was it 1706 as Mr. Bush would think and slur.    Basically, we like this action a lot.   Sector is on fire with POT SQM TNH...  So why not with LXU?   We think given the valuation of this one, which is still a baby, institutions are getting in big time.   We call it an instant lift of valuation.   How else can you explain the volume?.  From what we recall there is incredible value if this company gets broken down into different segments.  Maybe this idea is again refueled.

GTI, a ha, another IBD play you say!   Well, this is just added bonus we feel.   Whatever is happening with this one, it's going toward the right direction. One thing this is..is a turnaround story that is being liked.  The volume suggests it isn't common retail folks like us that are getting involved, which is good.  

Besides the above, we also like the setup in CUB NTLS TRCR TNH EDU.

Shorts Killer...

This market has been all over the Shorts lately.   Unless, of course, that you were short DNDN.    Ok, this is probably the last time we'd ever mention DNDN.   The long and short of it is,  the play is over and it's time to move on, regardless whether you are sitting on a loss or a overall profit from your previous trade leads here.   It's the last trade that only matters, no averaging stuff to give yourself an excuse to hold on.  We played it twice at DJIM, we doubt there will be a 3rd soon.  . On to what matters, we basically had a great day.   Fed meeting may provided a spin for this market in terms of volatility, but overall, most of the DJIM stocks that have showed strength last couple of days did extremely well today.     This time around, and just like all the other time around, it's all about earnings here.    To us, earning is the primary if not the only driving force of our strategy.    Figuring out entry/exit  points is one thing, but the ability to pick out outstanding earnings play with great momentum potential is the root of our approach.    Hopefully, by the end of this earnings quarter, many of you would have a pretty good idea what we do here on a daily basis.     Getting involved with the right group of traders that know what they are doing is one thing, trading to get more experienced is even more important.    

Still...besides all the emails we get during the day, including, ' great call' for an NGA, LXU, FWLT recently which we thank you for.  But,  there are still 1/10 that we can't understand.   If you follow into our stocks, why do you not exit and lock in nice gains when there to be had?.   Greed?.  Just today before the open,  we received one on IDSA and what we think now "as I have not sold all?".   Didn't we set out everything late last week and the potential for disappointment and other alerts, last being when the stock was $15.5 on Friday?.   The other ironically from last night on DNDN..." might be $50 after approval..what you think"?..  OMG,  its a speculative ticket  'short ride' every time we've mentioned it.   We gave our exits dang it.  OMG..to learn this member was holding 1k of DNDN later at 17+.  We had a recent hold into GROW's earning as well from a long time member. ARGHHH!!.

Guys..sorry but maybe to see your mistakes in bright lights here will stop the insanity!!. We honestly care, especially after getting to know some of you over time.

It's tough to pick out the  play to write about first since there are too many good ones...   ok lets start with..

FWLT, earning sells the story and momentum pays the traders.     By the time this thing moves over 7 or 8 points, there's not even any point going over the earning report anymore.   Why you ask?   Many traders may put the emphasis on the actually earing number, the quality of earning etc., what they often forget is that it's the collective action of those involved in TRADING this thing that makes the difference.    For us, we had a feeling that this one has good number, but we needed confirmation from the "big boys" to confirm our feeling.    When they go chase, we tag along!  This was the premise behind the 2nd note on FWLT today.  It went off like magic, you can see it gaining steam on every small pullback around $80-$81.   We were so ready, hopefully we prepared you and you enjoyed the rocket launch from 80 to 88.  It may sound surprisingly simple but it does take a lot of trading to get used to the idea of "your buy may very well give this stock a new high".  

CROX, this is just inevitable.   Provided that the market is rocking all around, we still think this one is going much higher.   Read up on our notes here, hell use the new search available to you to find it;).   In a way, this one reminds us of HANS in its prime days in some ways.    We added some late around our 'juice ' alert and it finished beautifully with a nch in place.

NGA, it feels like this IBD100 listing is looking more and more like a done deal, based on its trading.   With two days left till the end of the trading week, we think the downside is limited right here.    Yes, a pullback is definitely possible tomorrow or even on Friday.   In our opinion, any pullback should be bought.

LXU, again, we'd like to use our conservative approach and would like to see a pullback or consolidation around here after the stock climbed from out 18.70ish alert to nearly $21 today.   To us, it never hurts to underestimate the potential of a run-up rather than overestimate it.   What this does is that you are always setting yourself for good surprises.  If this stock continues its leg up with strong volume, so be it and we'd just play along.     However, we aren't buying it like the way we did when it was in the $18s, for now.

TRCR,  don't let the big point gainers make you forget about the little guys.   Your eyes may be glued to the FWLT of the trading world but the little ones can also make up for very nice gains if you time it right.    We noticed the set-up yesterday and today's just the confirmation breakout.   We added some and looking for more.

TRT, what may caused the strong action today may be the fact that people are looking for a change in IBD rating after its earning report.   Yes, this IBD thing never gets old. lol     We got a starter and will look closely for any further development.  The report itself is nothing to write home about..not 30% worth of stamps. The first trades premkt were $19.50 up 25%, a little to expensive for our tastes and not something we'd chase till we see what regular trading hours bring.  Finished up just over 30%.   In the end FLWT which was up 7% premkt provided  better upside as we thought it might in our pre-market note.  Maybe not so much better % wise, but definitely safer and much more liquid to go big $ with momentum.   You could not afford to chance and therefore do the sizes in TRT that you could have done with FWLT today.  As traders this is primary consideration when wanting to go in 'super size me' lots.

There are quite a few recent stocks that made new highs today, we are trading. These recent mentions from Journal or via trading members in our forum include SPAN TNH HAYN SCHN RS FTK EDU   We're still waiting on NTLS.

An incredible day from our DJIM stocks on a day the DOW +54 and the NASD +4.59.  Who outperformed who?

Shakedown..

'Breakdown....Takedown....Everybody wants into the crowded line... Breakdown....Takedown...You're busted...Let down..your guard..blah blah ..you're busted!".  Yeah, we're humming a guys tune who probably already had a beard when we born!.... but hey, what's the ruckus today?..We still in the loop.  Cheer up, it's not the end of the world!.   You know what was looking like the end of the world?....

The market being up something like 24 of 28 days!!.   What percentage is that?.   Sure , ain't Shaq's free throw percentage!.  The point is simple, what the "Disney" did you expect to happen sooner than later as we ran the market higher and higher.  Today should not be a shock to any of us. If you've ridden the DJIM plays recently, you are probably safely out by today anyway on most positions with nice gains..   But seriously, if the market shakedown scared you today, you still had a perfect storm to exit with gains in tow today.   Why...you say?

Let's see DOW down 147, NASDAQ down 43.   What really stunk the DJIM joint out?    Well, percentage wise it was NGA!.    But, we've all expected and actually welcomed a decent fall after this 40% run with DJIM hands all over it..   This was going to happen, no matter if the market got smacked or not today.   NGA was prime for it.   Besides the NGA bit,   there was not much damage to anything you might be holding off DJIM. You still could walk away today all in one piece if that's your choice.

FWLT  TNH  SPAN  CPY  FTK  IDSA  FSLR  KRSL  ADPI  are some recent DJIM names traded that managed to post green end of day.  Tomorrow..all these can get the smackdown and other barely reds like TRCR  LXU  MA  HAYN  NTLS (1% or lower) might as well.    What you had today is exit opportunities to leave with almost all of your recent gains in these names.   The next day you might not!.     Be it tomorrow or any other time in the market, if you survive one day...you might not the next if the slide continues.    What we hate is to be part of any domino effect, so today we did some selling into this orderly action of our closely followed/held stocks.  We don't want to blow the past months of good work out the window.   Safe than sorry heading into a weekend at this point.   Still...there was no action in any DJIM recent play that money screamed get me out of here...fast! .  We like the group we are covering at this time and will monitor closely as always.

As full time traders, we look to end of day for some fire sales on our favorite winners lately.  We've talked about buying a pullback for days on NGA...last night the last.    What we said today in the forum as it traded $13.80-14.00 from it's highs, is the market conditions today basically stamped out a chance for a orderly pullback and buy possibility that we expected from it before weeks close.   If the market (NASD) is down 20 points,  we do not know if panic will set in on any individual stock and take it down further.   We can't buy such a fresh pullback as NGA hung around $14 at 2pm!.   As a trader member pointed out minutes later, "would rather buy a pullback within the context of a stronger market day... Opportunities are made up easier than losses.".    Minutes later NGA crumbled to 13.20.   So how do you know when a pullback is sufficient?...is it the one down to $13-8-14.00 or will there be another as later today to 13.20?....We simply don't know and we're not going to guess at $14 with a falling market.    Basically, why play with fire as the market starts to crisp and burn.   Simply, we wait till end of day to decide if we want any.   We do it with strong stocks to buy in or add more and this is still the way we go if considering to recycle a recent big winner on a dip.   End of day.    Yes, we picked up small amounts of LXU, NGA  end of day.  This is nothing in size to when we were playing these recently.  We all should have enjoyed these 2 runs, we are not blowing it away with a substantial position now on a dip in a falling market today.    If any sign of momentum comes Friday in NGA, we'll be there in sizes again.    Call it another starter to monitor today, that's all!.   Still, the issue with NGA should not be if it catches a pullback and heads to $15 tomorrow.  What's 13s-low 14's to 15's at this point when the play has been here since a premkt alert at 9+ and soon after buy in low $10's. If you won big from low 10's already, what's the rush now?. Let it sink in and let it show a definite change in trend.  Is this a possible secondary leg coming up?.   Was this the retracement we were waiting for?.   We'll know soon enough (Friday).  We just went through IDSA remember, so you know what can happen.  What it might do at /if $15+ is a whole new different leg and we'll decide then how to approach it.

For those new here, our Aert-Comments are either our buy-ins or leads we are considering for a buy.  Today was a nice combo to an alert from Monday on FRPT to go with our buy in alert on SPAR today.  Both had stellar days in a bad market and were involved in the same contract.  Yeah looks like Cramer gave a hand to our pick ups again today.   We were oblivious to who or what or why...we just saw momentum happen at different times today for these names.  The idea was here Monday following the Armor Holding M&A activity for a look at  FRPT with its chart, today it paid off as FRPT and the company making the chassis (SPAR) for it all won. SPAR last trades at 31.60-32 AH. 

DJIM #20 2007

Rundown of DJIM's closely followed heading into Mondays trade...

TNH, definitely one the big winners on the week with a 24% pop.  We profiled Terra Nitrogen, fertilizer maker, back on April 8th (DJIM #15/#16), we said if you catch it on the right side, it could be quiet the ride. The right side has been now with Nitrogen in great demand and because of NG pricing.   The stock closed at $95, up over $30 since April notes.    Remember, she can be the volatile one and the higher she goes, the higher the chances of seeing greater volatility.

NGA,  though this one did not finish over $15 as per IBD requirement,  it might as well have finished above it to ease the suspense.     So is this more than and IBD play or not?   At this point, who really cares?    As long as the volume + price action do not die down, we are going along with it.   What we feel is that there are momentum hedge funds behind the work of this one which explains the consistent volume.   We like this one because of its relative liquidity compared to some of the other low priced IBD plays.    Why does it matter?   For those of us who trade more than a couple of thousand shares at a time, this is the kind of action that can get you in and out with relative ease.   What we are watching out for is the blow off top volume, as a warning sign.   So far, so good!. Our note pre market indicated some selling might come off the insider selling news.  This happened and provided a nice dip into the $12's early on.    Hopefully, some were able to get more there or low's $13.   The fact this occurred probably held NGA off $15 for now..   Why?.    If you bought high $12's, very low $13's Friday, would you not have sold at the high $14's if you loaded up in the morning???.  We did some.   Once this moved beyond $13.50ish, you knew new money would be coming in so not to miss the run to $15 and above.   No better place to sell for someone making a morning buy in the 12's- low 13's, don't you think?.     We're patient.    IDSA now NGA.  In so many ways this played out just like IDSA last week.    Hopefully, you were prepared to trade it smartly after last week.

IDSA   so the stock made it to IBD#43, a week later than it was "supposed" to.  Lol   Well, things will definitely get more interesting from here.   We think the exposure of IBD does bring more positive things to a stock than not.   It actually brings this one to many more traders' attention.  The OS/float definitely stands amongst the IBD 100 names.    As long as this one is getting more exposed, it's unlikely that the play goes away anytime soon.   We are using our usual approach with this one from now on and look for new highs as an excuse to add and 9 ema as key support.  Simply, the traders gut told us this was the one under $15 that was going to get riled up friday in our morning note.   We added in forum the night before to a IDSA question..Needs volume!.  We pointed out volume was at the previous days high quiet early, Friday. This was indication to us more was to come and a good chance this was going to take IDSA beyond $15+.

FWLT, wow is the word to describe the action in this one.  In our opinion, this is the kind of stock that's much much easier to play compare to NGA, IDSA and definitely the SIF's of the world.   Why?   This one is a liquid monster, an institution's heavy play.   Even as retail trader, we have no problem of going big in size and playing with the big boys.  You can't do this on a SIF type.   Of course, if you have a smaller sized account, this one still provide lots of fireworks even for small lots.  For every 100 share lot at $78, this made you $1800 in a few days.  Again, we say, don't back away from the expensive plays such as this and the MA's so easily.... As we tried to point out, we felt FWLT had more short term upside potential from the pre-mkt prices of FWLT ($78) compared to TRT's (19.50).   Based on closes Friday, FWLT is up 22% and TRT is 12% from that  possible morning buy-in and has been way more liquid to trade.

LXU, this recent DJIM pick up is gaining traction and starting the ride the coattails as many are starting to see it as a Ag play.  Their chemical biz seems to be thriving as seen by EPS results and it's definitely one of our favorites.   The ticket here to consider!. POTash is around $200, TNH, is near $100 and if I might have missed the ride, maybe my only only logical cheap play here might be LXU??.   Hmmm.    It is in top 5 performers in the Agriculture section of IBD movers.   Besides, there is a new #1 IBD Industry Group and it is Agriculture and Fertilizer...really, we're not fertilizing you!

SPAR, this pick up pre market the other day at $30 was a quick bump to high of $32.70.  We sold some Friday into the Cramer push and later picked some up cheaper again.  Selling into strength generated by outside influences, such as Cramer is a no brainer.  This one falls into another sector that is thriving.   We were watching this angle since AH takeover by bringing FRPT into the DJIM fray Monday. SPAR is intertwined here as they are the chassis maker dealing with FRPT.

CPY, we put this CPY back out at $80 Friday on alerts as a buy in again.  It manged to climb another $3 bucks higher at one point.  Just keeps on ticking and it is more than the retail investor buying 100 lots here that is still driving this higher at these levels.

TRT,  we are holding some TRT but on a short leash to see if a IBD crush comes.  The play here started back in 2006 based on EPS and their China connection starting what we thought would fuel this compnay.  We played it now for another 2 Q's  and this is the first Q that we saw revenue slow down.  It was actually a tad lower sequentailly and Product reveune dropped some 20% sequentially.    So has the Asian buzz hit a wall as these numbers might indicate?.    At this point after 3 excellent Q's,  you should not be looking at YOY Q numbers here,  but sequential growth.   If this was a big Semi name that showed no sequential revenue growth,  besides the under 300k in net income, it would likely been a ho-hum report as analysts would not be looking at YOY if they had been placing estimates on the stock for this Q.    They would have looking at the 3 previous Q's since we've been following it and their expectations would be based on that!.   Simply , sequentail reveune growth has been curbed some it seems for now.   $6.4>  9.5>  9.9> 14.06 and now 13.6mln in revenue for the last 5 Q's.    An advantage of no analysts covering a DJIM stock is seen here.  The problem is the company gives no guidance, so you don't know if the revenue has hit a peak and if EPS next Q might hit a snag as well.   Anyways, we're in for some, this just ain't one of our top holds at this time.  We'll see how it starts to play out early in the week.

SPAN, a May pick up( profiled in Alert sec), is the little engine that could, a slight pullback mid week and then a NCH to close out the week.

SIF, a hot market definitely brings out hot money in the micro caps. At this point anything new is beng chased up if the headline numbers stick and we joined in with some of you for a quick trade.   Definitely, some of you guys got more out of it than us!.   Great!.   With so many plays on our plate Friday, we left this while the exuberance was high and while it was still possible trade the bigger lot sizes to make it worthwhile.  We don't know if that will be the case by mid-week, if we wanted to sell a big lot hold at a decent price.  Time will tell.   You see, some plays are taking EPS to a different level in this market, as in potential one Q wonders being run as if they will be what TRT, BTJ, DXPE, NGA in the beginning of their cycles.  Those companies were turning around and you could see by their growth figures.  Not only YOY growth, but sequential revenue/EPS growth as well.   This is how companies become IBD inclusions.  We see pretty stagnant revenue growth Q over Q's at SIF with one good EPS Q under it's belt now.   There is no saying this company can pull off another going forward, despite being in a good sec.   We don't see it as 2 Q's with upside EPS, last Q was almost all government grants income that made up the EPS #.  We're not knocking the company, we're just saying it's not for everybody to trade here, especially if thinking one EPS Q will make it the next NGA, BTJ, DXPE etc.  This simply means for those considering playing SIF starting Monday,  be careful if thinking this almost 100 year old co' will become a solid player into the next few Q's.   DJIM members need to differentiate the type of plays conducive to their style and abilities.  This is all we are pointing out here.   For those giving it a run....keep pushing and we might be back to help out.   IBD numbers are on equal terms to TRT's and made it on Aerospace IBD hot list this weekend.  Institution holdings are about 25% in this name, if their Blackberry's were not working overtime selling Friday, this upcoming week might get some of it.  If the shares get in retail hands, who knows what can happen in a happy market.  Will leave it to the speculators for now and concentrate on companies producing revenue, EPS growth Q after Q.

CROX FSLR TRCR ADPI HAYN NTLS MA SYNL, all behaving fine after being followed closely here following their EPS this Q.

HDNG TWIN FTK  added to IBD or moving up as in HDNG case after EPS #'s last week.

This market is moving clearly off the earnings of S&P co's, small caps etc. and we at DJIM definitely are simply in the right niche at the right time!

DJIM #25 2007

This is definitely a helluva of a start to the summer. The recent scare of back to back to back days of declines leading to last weeks broad rally is volatility at it's best and every traders dream.  It was just on the 14th (3rd day of declines), we said lets all take a chill pill and not act hastily with our books and wait to see who/what puts the bears into the woodshed.  Seemingly, everyday since there has been something to reignite the Bull and his herd.  Friday was the crowning as tepid inflation numbers brought back hopes of better growth to go with it.  If you had the QQQQ on level2 as the CPI came out, you'd think you won the lottery before the open.  An important ingredient to last weeks rally was being prepared.  The only way to do that is having stocks in tow or watch listed to recycle into that were strong to begin with. We think we were definitely ready here at DJIM by having 'strong stocks' as the market finished its tumble.  In DJIM #24, "Even after the tumultuous week there are more than a few DJIM's still trading near highs or making them. These are the stocks we are concentrating on. The partial theme here is to always play strong stocks!. Common sense says a stock that survived last week and finished near highs is a strong stock...".

Included in this list were :         KMGB    LXU    TNH     CUB    RCCC   LPHI     GHM    MA     FWLT 

1 week % performances          21.46    8.16   19.15   4.37  19.73    25.72  10.28   9.80   5.49

Simply all you needed was a healthy dose of DJIM stocks to recycle if need be.  It is so much easier when you have the right watch list without having to seek out what is hot in a fast and furious market. This allows you time to concentrate on trading and getting in early if you were not there already.  Saves time and money.

Beyond the above DJIM stocks that we will continue to stalk, we also had a few names..old and new come to forefront last week...

One of our all time DJIM favorites, MFW was picked up on the hunch they will do something with their cash, well more of a hunch the hedgies will feel that way.

KHDH was one we didn't get much out of recently but oh boy did it show its magic for the last 3 days since alerted $58.5`s. A fast 5 points-8% to the high of Friday.

AIRT, was introduced Thursday $9.60`s area and almost hit $11 at the open the next day before digesting its previous days gap and big percentage day.

SDTH, we just couldn't buy and type fast enough it seems. We started buying the low 5`s and by the time we got the alert out it was 5.30 and then exploded to 6.25 in the next 15 minutes. We said what we saw as angle to this play and soon enough it seems Briefing saw it the same way. Fertilizer and China with earnings.   See their write up posted in Forum by a member. 

AHD MFLO VSNT pretty well round out the play list.

..most importantly today...A Happy Father's Day to our friends here!

Better than nothing....

"We are looking at the Nasdaq here and will not get that bearish feeling maybe until/ if 2590ish is broken end of day.  What we expect here is the gap from Friday to hold and some buying to come in tomorrow.   Now, if we get some morning news to favor the Bears, well then we ain't going to get the buying, are we?." 

Well...we didn't get any news noise in the morning but we still got an early continuation bump from yesterday, which was hardly a surprise considering what was a sizeable drop.  By 10am we hit that 2590ish mark (2586 low to be exact) and the rest is history.  Last night we thought there was no reason to fret, simply the bears caught the bulls napping after 3 days of churning yesterday.  That's the way we felt while it was all going on and later last night after catching our breath.   If it was the yield climbing yesterday...why didn't we go lower as it climbed to 5.19% today?.    Are we satisfied with today's reversal?.   The answer is no, but that could change tomorrow.   You see DJIM stocks have a way outperforming the indices and not performing on par when the market rallys.   We have seen this time and time again and have written about it many times.   Despite the rally today, it was really only for the techs on the Nasdaq...even the big caps really didn't perform to NASD snuff.   There were a few DJIM's that bounced nicely off low's...MA 6 pts...TNH 12 pts..FWLT got in the grove late for 3 pts, but the problem was with many of the small-micro caps that have been running here that didn't perform as we would have liked.   This list includes SDTH, KMGB, CMED, LXU, AIRT, VSNT etc. but a few did like LPHI, TBSI, GHM  (34k vol. woo hoo).   Still..besides the few it was uninspiring in the scope of things, but at least yesterdays fall did not continue today.   So..maybe we shouldn't be so picky....Yeah right!.  Let others and their niches have a good time while we are predominately left out.   NO WAY, JOSE!

If today wasn't just a blip like the fall yesterday was....well then we expect some action in the DJIM stocks that did little today to move tomorrow. This is even if the market digests today's gains and does little all day...but we do have the Blackstone (BX)  IPO tomorrow, which should help the karma on the trading floors.  Maybe it can spread...

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so it comes at the middle of the week...

Of course, we are referring to the strong action this market has given us today.    What started as a shaky morning turned to a very strong and positive finish in the afternoon.   We are very impressed and we like the action market exhibited today.     At one point in the morning, the breadth on our watchlist was so terrible that we only found a few greens with next to no volume.    Does this mean that the recent slide of the indices is halted?   At this point, we aren't absolutely sure but we think today's action is one step toward the right direction.    Folks, this is summer trading so we shouldn't look too far beyond what's immediately in front of us.   Still, the nerves quieted down some.  Not so much edge of the seat about to fall over by the close today feeling.  Here's a hint to the market, you've seen it mentioned plenty around here.  PAULSON.  This is one name the big boys want to speak out load.  He's the insurance policy for the market.  Today was no different as he took it from red to green.  Others will tell you otherwise for today's buying.  If you believe there are higher forces controlling the fate of this market, well then you should pay attention when he speaks.  The timing is always impeccable, over and over again.

Here are some notable plays to keep close eye on...

LPHI/TNH, ok lets just get the negatives out of the way first.   Isn't it funny that when market is having a good day while these two get hammered badly?    Well, didn't we see it coming from a mile away? lol    As we have noted in recent journal and even in last night, we feel these two may get sold off imminently due to their very extended action.   We hope you did what we said and kept the stops tight.    Once the stop hits, out it goes.   There's really no point to wait for a bounce for a better exit point.    In terms of getting back in, we feel that the most recent phase of run up may be over for these two and we'll have to see how they consolidate the next few days to determine where we may get back in. There is no hurry. If a stock deserves higher prices, it will show it to you soon enough. Jumping in the first sign of weakness is not our game.  It's only an excuse for missing TNH from something like the 60-70's or so here or when LPHI was alerted almost 100% lower than a month ago.  If you snoozed, don't try to pick up the pieces later in the game at first sign of weakness.   It's like going for sloppy seconds, let it simmer for a bit before proceeding.  It will tell you if you should.

KMGB, unlike the two above, this one has not had the kind of monster run-up and it ran into consolidation recently.   We like the action today and think that it may resume its upward action and challenge its old high.

RCCC GTLS, put in a nice day all around.

DDUP/SCOR, today's definitely an IPO's day and these three all traded really well since their opening price.   We are keeping them on our active trading list to trade on any kind of meaningful follow through.

JASO, solar plays seems to taking turns to shine and this one is taking its turn today.    Although we like its action but we are only limiting our action to intraday trading.   This one is prone to quick sell offs so we constantly keep that on the back of our minds.

LXU LDK, these two had a late day surge and we are going to be watching it closely tomorrow morning to see if there's any potential for breakout action.

AAON SPEC are past DJIM entires that should be included in a trading watch list now.