Is it Friday yet...

Now we know where the Bulls are refueling these days to push this market higher and higher...by the looks of it is at BWLD and CMG!..lol.  We won't go further tonight on the indices as that pretty well covers it,  we've bantered enough the last few days about remaining Bullish.  The favorable bias returned yesterday afternoon and continued nicely into today.

CPY, the incredible run continued today with a gap open of a couple points and a dash for $79. Yepper, thats about 22 points since Sundays note on it...or 16 more points to play within since yesterdays alert note.  Either way you slice it was time to get out of this ride.  We said something was up last night....somehow, the news today of CPY buying up another co' in bankruptcy for 100mln today doesn't totally gel with us for the rocket trip.  We say this only because when we had this here in the low $40's there was some quiet speculation that CPY was going to be taken out.  We'll give it a breather and watch if it can do more...but with 700k volume it could have blown its top today.

VOXW, we knew from watching this trade previously it could be a wild ride and therefore gave a warning of sorts. The reason was evident in the first 5 minutes of trading as it went from $4 to $8, lol.   Once the rush was over, it actually traded well and gave plenty of opportunity to buy between $6-7 before a trip to nearly $9.  What we knew about this company was its tiny float and it's ability to run.  Many probably looked at the Yahoo line and thought it had 6mln float and so it is probably still passed by some.  We think the float is 1/6 of that or so.  Throw in this line, Q1 EPS of $0.10 vs ($0.34) ir yr ago period; revs $3.62 mln vs $1.87 mln in yr ago period and we thought we had one for the traders here.  It actually calmed down and stuck to a range most of the day without any big sell off on profit taking.  We traded it and kept some end of day and we will monitor closely if it has some legs or not.

MA, every Q we talk about picking this up, this time we did with idea of getting into the 130's with it.  We expect more than a 10% gap with it and think it will squeeze to 130's as it's more than 10% short.  The report was a blowout but of course the shorts will look to the economy prospects to try to knock it down.  Hey, if BWLD and CMG still take MA, we'll take some MA for a starter.

ADPI, noted last night, showed it's pearly whites today for another possible 2 point day.

What you have now is new earning plays taking center stage while ones as recent as last week are consolidating their early gains.  So be on your toes for fresh names every day.   Sooner than later, the earlier names will begin to move if the market keeps humming along.  There was excellent action in small caps/ RUT today, but a few names we are holding didn't join in.  Not the first time our DJIM stocks behave like the Black Sheep only to come out strong the next day...we'll see if that's the case with IDSA, NGA...maybe they just have a IBD attitude problem and want to play on their own terms.  We do think for the most enthralled by these to understand you're missing opportunities if this all you have now.  We know the crushes some get on high reward plays with speculation of IBD attached, it is also never a bad idea to not forget the risk still attached to these trades.   If you've been asking all week, "Is it Friday, yet" because you're waiting for IDSA to move, you might be heading for a disappointment come Friday 4pm with some opportunities missed in other places as well.

It's still not Friday....lol

We are definitely a bit tired from the trading last couple of days.    For a little while yesterday, we were wondering why some of the little ones weren't participating with the recent market move.    Well, that was no longer a concern early on today.   Like we said last night sometimes DJIM stocks like to do it on their own terms and "come out strong the next day" after a day of non rally participation.  The little ones, namely NGA 17% to high of day and IDSA 16% to high, both had very good days...no sorry... excellent days! and we are just glad they are behaving exactly the way we wanted them to.     What we are also being amazed by, is the resiliency of this market.   Earning plays, as long as they beat or guide up, are being bid up aggressively.    We haven't seen this much enthusiasm even during the winter quarter.

Whatever it is,  both institutions and retail clients are making money in this market.    This is a good thing.    We at DJIM, try to play a little bit of everything and try not to exclude ourselves from any potentially good opportunities.  This is also because we have a diverse group of members/ traders.   You'd see us playing a $100 stock as much as a under$10 dollar cheapie.   Why is it so?  We just can't rule out any possibility that a $100 play may give u as big of a bang for the buck as a $9 play.     As for our readers, we'd try to give as many heads up as we can regarding various good plays based on our experience.  Today, we tossed in a scalp possibility in GTI, still a earning play for traders tossing nice dollars and sizes around. This was a 2-3-4% possible trade.  Experienced traders can recognize the action and decide when to go in and out quickly, so a lead is all that is needed to something that might be playable.

Now lets get to the nitty gritty of things...

NGA,  small stocks attract the most attention and it's no exception at DJIM.   Briefing had a little profile yesterday but we wouldn't call it a most optimistic summary.   In any case, the stock rallied hard today and action today looked inevitable based on previous days' action.    What's driving this is the possibility of an IBD100 inclusion.    This is still quite a far way off.   However, as long as the attitude and mentality is to trade toward $15 level, we'd know exactly what to expect and how to deal with it here.    This NGA, also had smells of institutions stepping in, based on volume.   Whether those institutions are hedge funds or mutual funds or momentum based short term funds, we don't care.   It IS in play and that's the way it is.   We just have to take advantage of this liquidity and trade it in sizes.    Oh yes, trading in sizes does matter a lot in terms of potential profit and losses.     Generally, when a stock has strong momentum and trade in liquid fashion, we tend to take on bigger size and ride them higher.

IDSA, so what's next?    Hopefully, some of you have locked in some profit from the previous days' accumulation.  We're sure most would have been happy seeing mid 15's by Friday close!.   Why sell now you ask?  We say, why not?  We've been saying 12-13's are where we are buying for days now.  If the whole point of playing IDSA at this point is IBD100 theme, then you can't help but to think that the end might be near once it IS included in the list.    If somehow the trading characteristic of IDSA changes after the IBD100 inclusion, then we just have to change our approach a bit and trade accordingly.    For now, we are treating it as just an IBD inclusion play.

MA, wow is a good description and this is the reason why we are playing some of these 100 dollar stocks. Up 7% or  8 pts since yesterdays buy in. We added some early today on its strength and  are looking for further upside as long as the market is in a good mood.  We got what we talked about in the Journal and have decided to hold and add more despite it hitting our target of getting in 130's!.

SPAN, we covered this buy-in pretty well in Alerts section and we are very happy with its move to $26 today and about 5% off the Alert time. We knew about this one for a while but the action was too slooooow. Now we have had 3 consecutive days of 90k+ volume up days and this stock must be getting on some screens and being discovered as an earnings gem with a tidy mini float.  Still, don't forget stocks don't go straight up though for days!.

Anyways...Great day whatever you are trading here! ....A few for freaky Friday below..

DNDN, timing is really everything when it comes to this one.   Some of you can argue that you had this one in your portfolio for days and you knew it's gonna go up all along.   We say that's just as fine.   But to us, we used the capital to played all those big point gainers while some ppl are waiting in the flatlined action from DNDN last few days.   No biggie, it's just opportunity cost.   To us, we wait for the right moment and strike.   We struck today late and have held our shares overnight.   Hopefully we get some good follow through tomorrow and ring the register.

CROX, this one is almost sure a gapper for tomorrow and we bot a couple in AH just so we are in the groove as well.  The guidance is just crazy!

Also a small position in CUB at the close to test out the waters.  Maybe this blowout number gets some upgrades in the next couple of days and breaks recent high. It's not flyer, but they all don't have to be.

DJIM # 19 2007

" Go hard or go home", off last weekends Journal held through and true this past week.  Opportunities are abound and this recent activity has been the time to take advantage of what we are being given by the market gods and what we are giving you.   We look forward to more of the same this week.   Fingers crossed!.   By the looks/ feel of it, only outside influence from abroad can curb this enthusiasm we are seeing.  So keep your eyes on the markets overseas for any hints.  This way we could all say, FIFO..first in, first out.  Until this possibility or some other event occurs, we will keep on riding the earning reports and more.  Last week, we had another fun trip...NGA, IDSA, MA, SPAN, a few nice tradable opp's in DNDN, VOXW, GTI.  Clearly DJIM is being selective and getting into right plays!   Also a few late in the week pick ups with potential in FSLR, CROX, we hope they have a good market to show its true deserving colors.   What's important to remember is what we've discussed before and that is having cash on hand to buy.   Sometimes this means even cutting a EPS laggard after a day or so,  just so you could get into a better play.   We are even doing this as the number of stocks has grown in our book recently and we'd like to keep it manageable .  We don't want too many, we only want the best possibilities!!.   Examples of this might be a VSEA, CUB type.  Their day might come, but if a CROX shows up after you just pick up a starter in a CUB the same day, it is better to ditch the CUB to the curb.   If you already made 7pts in a MA in a few days, there is probably a better chance you'll get something close to 7 points elsewhere faster again,  so switch up to a fresher expensive name in this market for now and consider coming back to the play left behind if it behaves right later.... 

....so now the names crossing the DJIM wire...

SPAN, a crawler being discovered is just what this is. A nice pick up last week and quick but steady 2 day rise of 10%/ nearly 3pts to highs.  Overall a 30% move on the week and some hesitation, consolidation might be in order. #5 rank in IBD leading Medical stocks with 90 97 this weekend.

DNDN, definitely this was worth the wait for a 'strike' and the timing was perfect. You could almost see it coming as it traded to $19 AH's Thursday.  We concluded Thursday Journal note on DNDN with 'ring the register'.   If you didn't on a potential 3 point move or 17% on a speculative stock play...well that's just silly.  It was only the 4th of May...the15th is approaching and we will look for another ring the register entry possibility as that day nears.

FSLR, ...NO!..we are not playing the solar sector here just yet again,  we are trading the FSLR on the heels of its earning and guidance.  Reports Q1 (Mar) earnings of $0.07 per share, $0.07 better than the Reuters Estimates consensus of ($0.00); revenues rose 391.9% YOY to $66.9 mln vs the $52.8 mln consensus. Sees FY07 revs of $370-$400 mln vs $326.97 mln consensus.  Simply FSLR is clicking in its execution and capacity ramp ups behind closed doors and this can't be overlooked.  We don't know what ASTI or the likes have cookin', so we go back to our favorite from this space last Q.       We bot in the afternoon as the stock started to take out the days high levels over $66.

RCCC, this was a earning play we've been looking to add again for some time.  We added late Friday.  The co' already pre-released their Q1 back on April 16 and has Bear Stearns riding a upgrade on it.   The co's call was only Friday and w/o listening to it, we'd say there was nothing negative said judging by Fridays potential breakout move.

CROX,  with a gap over $10, we really didn't expect to see more covering just yet on the first day.  It will come and we expect nothing less than to be in the 70's here soon market willing.   Maybe it will be as soon as Monday, if it does as our MA holding on its 2nd day.  To our member wearing CROX while trading, consider the static generated by CROX's is knocking out respirators in Swedish hospitals...watch your trading platform!!

ATV,  if the market is hot , we expect IPO's to feel quite fuzzy as well, even if this sec ain't the hottie now.  There is always or will be an appetite for China IPO's and we can't overlook this one after DJIM successes with EDU, MR, HMIN in 2006-07.   This is already 2X over IPO price.  Let it sink in first, if you are wanting more than a trade possibility now.  We are trading it now.  The company runs TV direct sales programs, which are typically five to ten minutes in length, on four nationwide China Central Television, or CCTV, channels, 28 national satellite TV channels, four international satellite channels operating in China and eight local channels.

NGA,  definitely one of the best gainers/ buy in of the week by DJIM early Monday.  This one does not always trade as pretty as it did last week, we expect some dippers along the way as this makes a possible move into IBD100 life.   Again, we are playing the potential IBD inclusion with these types, not the aftermath of sticking on the list at first.  We'll decide on stocks making IBD when it happens for a further trade possibility.

TO, you have to accept these plays act up in spurts and make sure not to be taken out with the gyrations on little volume.  If it goes up a dollar quickly, it could do the same the other way before going back back up.   Patience is required on these types that don't have much history if you decide to enter them.   Volume is an issue..day to day.   Anyways,  a nice move off 9ema and a NCH, Friday.    Keep VOXW on radar for these types of moves and not necessarily off 9ema, it could be just a PR of some sorts that rockets it again. 

IDSA, hopefully you played it like us and are sitting free of it this weekend.  If you didn't cash out with another late day opportunity over $15 Friday, well then you don't wanna hear this again, "you might be heading for a disappointment come Friday 4pm with some opportunities missed in other places".  It was quite disappointing from a distance looking in on this, not only did not close over $15, it was a feeble effort to do so late in the day.  On the hand,  it was also a disappointment it didn't crash late in the day off the 'exclusion' of not even holding $15, so we could buy back in the $13's and do it all over again next week..lol.    We might just have to anyway!.   Instead it was last months, IBD inclusion play at DJIM, SPEC showing it up and taking IDSA's thunder and making it to #25. 

Other earning names from this Q, we have secondary scattered positions or trading/ eyeing still...VSEA, NTLS, WST, SSYS, CUB, ADPI, ALGN, TRCR to go with usual suspects  BTJ, DXPE, MFW *EPS out Friday AH, CPY.  This pretty well rounds out our trading crop this Q.  

Keep an eye on GROW in the morning off EPS....with Gold being up up as much as 15%(approx) this year at one point, you'd think they had influx of funds into their precious metals last Q and would produce a kick ass report.   But, we are not here to think, we are here to 'DO' and act. So we wait for the report.

Yeah..Yeah our Raps lost..great game! ....but our Raptor claw logo has taken a chunk of the market while up and we ain't messin' or are we knockin' the little good luck charm off the site for now!...

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 #21 2007

Sitting Bull wasn't basking in his laurels, recent victories come Friday. Instead, he and has band of M&A and buy back share brothers decided to charge signaling yet more accumulation. Once again the army of bears didn't have the muster to do anything to curtail this frenzy buying.  So we march forward and with every stoppage in play, we continue to expect the ways of the Bull to keep us going with MSFT-AQNT type hoopla creeping into the market. So that's the big world, what's happened in our little world, niche. Well, what can be better than having 3 closely followed DJIM make it to IBD this weekend. Not to shabby to have three (NGA-TBSI-GTI), be the top three new inclusions at # 5,9,26.  Hey even Curlin our sentimental Derby pick, stuck it's nose out with a flurry in the Preakness this weekend.  So..all good seemingly as we head into the week after what appeared as distribution earlier in the week. Still the NASD and small cap indices finished lower on the week and this is the ho-hum in the market that continues to concern us.  Maybe this time these market players play catch up this upcoming week. A hunch is they do.  Also, keep the big oils up as we head into Memorial day. Stocks like OXY, SLB, UPL should do better than the small cap names in this sector because bigger caps have been the leaders. If there is big money wanting to play this sector, it should go to stocks like these. On the charts, these look great and when called for, we like to trade these names.

KHDH, was a new buy in for us. The co's earnings for the most recent Q came out early last week and are up in the Alert section. We've had our eye on it for awhile and this earning as seen by its 2 days with 100k+ volume it got noticed.  We 'll look to add on dips or further strength. This trades in a fashion similiar to a CPY type and so it is possible to do both.  IBD composite rating is at 97.  This might suit the investor who has picked up our May buy in plays like RCCC, NTLS, CUB, SPAN, AFAM.  A few companies that don't get the recognition here on a daily basis because they are just nice and steady plays that you can't say much about on a daily basis.  Speaking of...lets give some of our secondary plays spotlight for a change. They are not secondary for those that can't watch like a hawk the faster plays day in day out from DJIM. These holders are doing just as fine this month without the diet of Pepto.

RCCC, touched on 29.70 from the May 4th buy in at 26.50ish levels(12%). Trades nicely a $1 above the 9ema for the last few weeks. Not much you can say about it steadiness, except watch the 9ema as a guide.

NTLS, also an early may pick up in the higher 22's as another wireless play a la RCCC.  Just like RCCC this EPS play closed with a NCH at 24.4 and is gliding on air just above the 9ema. A possible 8% is nothing to sneeze at in a couple of weeks.

CUB, a buy-in low 22's off earning popped to a $24.30 close Friday. Just another 10% play so far. As much as we like to play the NGA's,IDSA's, there is nothing like patting an account with consistent steady 10% plays.

AFAM has bounced from 20's to 24 since our premkt earnings note May 8th. 7 bucks off highs is only 3 now.

FWLT CROX MA LXU GTI TBSI SPAN SPAR IDSA MR MTOX, other prominent May DJIM plays that we are trading at different times depending on set ups and market conditions.  As far as TRT, FWLT has definitely been the play as its stands 20% above that premkt intro.  Meanwhile, TRT nests back to 9-14ema and at 19 is below 19.50 premkt initial price off EPS. Quite a few of you did not like our stance on TRT after its earning. After our full write up last week it declined 15%,-5 straight down days, we hope you had a change of heart if we saved you a buck or two. Is it going to bounce or is going to fill some of the gap?

NGA, okay... so this followed the script since we first alerted/ bought into at $10, April 30th. The stock traded to high 15's all last week and the suspense was over for us at that point.  The only suspense came back in the last 15 minutes or so Friday, actually it wasn't suspense but a 'you better get there' plea. The inevitable finally happened and now we see if this was only a IBD inclusion play or not?  In other words, will this have the kick to get to the 20's split time. We'll see if the 100k+ comical push in the last 3 minutes will be a forward to a dump-eroo in the morning now that it made it on. Of course, we hope it finishes with a new closing high and continues to be in play.  Consider the flight of IDSA, SPEC recent additions to IBD100.  The following highs on Monday have not been reached again.  We were not warning on Friday, we are only throwing caution to the wind after a possible 50%+ run here.  We see no reason to blow 'any' of the profits generated in the month off NGA and have walked away with plenty in the high 15's already.  It makes little difference to us that we are at those same prices Friday AH's.  We'd be no better off yet if we hadn't sold off most earlier.  Still we have some and most likely will sell into any morning strength and then re-position if further strength is shown during the day or days ahead.

Small Caps...

The small caps definitely outperformed the rest of the market today.    Perhaps, fittingly, the lagging action finally moved to our neck of the neighbourhood.    RUT index was the strongest among all the indices and it shows in majority of stocks on our play list.   In fact, everything seemed to be green today all across the board.  Our hunch that the NASD/small cap play catch up in last nights Journal was clear early today with the NASD climbing to almost 30+ and DJIM small caps in tow.   If Dow hadn't reversed intraday, we are sure that some of the bigger stuff of our small cap world would've closed much better.   There was some excellent action in MA CROX early..oh well, such is life, we can't always wish for a perfect scenario and we'll just have to take today as an overall good day.

Onto some plays here...

NGA, now that this one made the IBD list, why is it still going up?    Why not?  Again, before the split announcement, we were much more bullish on the potential of this play.   The split, now come think of it, may just add an unwanted twist to an otherwise great story/play.   From the look of it today, momentum is still there and the stock notched a new high off very good volume.  This is what we wanted, a NCH.  How do we approach this one now?   Much like what we did with GROW back then when we rode it from $30 to $70(pre split), we play till the music stops.     We'd be watching this 9 ema religiously and the higher NGA trades, the more cautious we'd get and smaller the size we'd trade on.  There was no monkey business and the stock carried on without the usual IBD shenanigans. To us this was a good sign.    The easiest of the easy money, however, in our opinion, was made from $10 to $15.   That run-up had the great probability with limited downside and lots of liquidity.   So folks, take this one as a good lesson if you hadn't made much off this one.    A play like this will come again, sooner or later.

FWLT 4%, triple digit club, enough said!   We cashed out some around $100 and will see if this one can take out the psychological level and move into a new trading territory.    The story is definitely not over by any means and we feel this one may last a long while on our play list.

NTLS 2.2% RCCC 3.4% CUB 1.6% AFAM 4%, these three keep on rocking and they are up like most other small caps.   We've been very happy with these quite runners so far and we aren't doing much with them unless they show sign of stalling.

SPAR 6% FRPT 5%, these two made a b/o today and we are treating them as a pair trade that moves together.   We were adding/ trading some today but are keeping our time frame short

USU, even though this one trades heavy, we like the way it closed today and we think its business is independent of the overall market sentiment.

DXPE, "load, weekend alert, gap, dump",  oops, did we just give out the secret of a certain trading guru? lol. SYNL and now DXPE back to back.  In fact, we'd like this move much much more without its status being "stock of the week" freebie.   Given the statistical result of past "stocks of the week", we'd be a bit more cautious if still thinking about chasing the move.

Even TRT answered our question from last night...it bounced...imagine if didn't on a day/ set up like todays!.  We'll see if it gets to highs before considering it again for more than a quick flip opportunity.

Looking for an edge...

Traditionally, market will begin to slow down right about here.    So what are we going to be looking for the next few months?    Well, we know that some participants will take it the easy and take on a vacation, literally.    For others, they'd still grind it out day in and day out, but at a much slower pace.     What we at DJIM are going to look for are plays that aren't beta, but rather look for those plays that move independently from the market.    Of course, that is assuming that the market does not make a dramatic move in either direction.     So,  there's the big rally strategy, there's the big selloff strategy, and then there's this slow action, lazy summer kind of strategy.

How do we approach this market then?    Assuming that some of us have a sizable portfolio, we are going to commit 1/5th of the capital into work, as opposed to the usual amount we'd commit during a busy earning season.    This is just a form of discipline we practice during the slower market.   We found it that when dealing with a slower market, it's much easier to manage fewer positions and smaller sizes.   So at the end, we try to make our trading life easier.    However, managing fewer positions does not mean that we track fewer positions.  On the contrary, we may be forced to track more positions just because we have to expand our watchlist to include not only the smaller caps, but mid caps and some bigger caps as well.

The market may head into a uncertain direction, but our methodology and discipline do not change.   The intensity of trading may not be as high as a couple of months back but our focus is still right at the top.

Here are some stocks of interest today...

TRR, we bit a little bit of this one today.    We liked its action lately and felt it's in play and can last a little longer. The company reported recently and has climbed about 40%. Co reports Q1 (Sep) EPS of $0.01 vs ($0.34) in yr ago period; reports gross revs of $102.9 mln vs $110.6 mln in yr ago period. Co reports Q2 (Dec) EPS of $0.05, ex-items, vs ($0.37) in yr ago period; reports gross revs of $114.5 mln vs $96.2 mln in yr ago period. Co sees Q3 gross revs of $115 mln.  This is a turnaround story as the co`restructures that is seemingly liked.  NCH

TATTF, finally, this is no stranger to DJIM Forum, IBD talk and we have played this one numerous times before.  It reported its best EPS-Revenue Q yet and after taking a beating from $28 Feb- March, this looks like it could make up some of the lost ground off this report.

PCS, is one of the best IPO`s of 2007.   It traded 20mln shares on its opening day and has not stopped moving up since. The wireless carrier is showing tremendous growth as it offers a flat monthly fee for unlimited airtime and other combos including internet access.  Today's action was selling on the news.  The news being the lead brokerages quiet period ended (actually last week) and four came out with price targets between $41 and $46, including 2 buy ratings.  You could see one determined seller in the morning that wouldn't go away, you dont need level 2 to see him. What happens many times is a few load up into the end of the quiet period to unload into the brokerages coverage. This was clearly what was going on today and you should always back off a little if you see a dude throwing up 3-5k consistently to sell.  We think this will hold the 9ema and turn back up once the seller is driven away.  We will look to add on such action as this stock is in the right space with great growth.

MFLO,  this is a stock we were buying around $21 a few days ago and have been in with smaller positions for a couple of days now.    We added some today given its relative strength compare to the rest of the market.   It notched a new high and we like the way it held up most of its gain through the end.  Like we said the other night, we think something is up here that we little people don`t  know about.

TBSI, last couple of days proved to be a good test on this one as it bounced off its 9 ema.    Today's strength may suggests that the run-up is not over but we aren't certain at this point what kind of follow through it'll get.   The good thing about this one here, is that it's only a buck off its high.

MA/FWLT, these two, despite their strength among the bigger names we follow, follow the index much more closely than many of the smaller caps.  You can almost see the intraday correlation between them and the index.   To us, we can still scalp some nice points off them given the volatile nature of this market.

Be prepared...

Summer trading may be dull but days like today cannot be ignored by market participants.    Perhaps, since the majority of the traders expected a non moving and slightly lower market trend with slow volume the next little while, we may just get the opposite of that.     Of course, one strong day in the summer does not mean that we'd be starting a summer rally monkey chant.     What we feel, at this point is that we cannot rule out the possibility.     We had two market moving catalysts today, the sell off in China and Fed. minutes.   Both news bits could have potentially sparked a sell off over here but the market managed to shrug off both bits and shot up as a result.    To really put this into perspective, it means that we as traders will have to keep up with our A game and not to let up on potential days like today.    One thing that's obvious here, is that when the market performs strong, the beta stocks lead the charge.    Some of the small caps, momentum or not, may eventually play the catch up game.    The key here, is to recognize which stocks are in play and which one are not.   It's absolutely critical that we do not take our own personal opinion in speculating which stocks may be in play. You have a watchlist of recent winning plays that you can and should easily turn to again when called for, like today   Let the volume show us, and let the market decide which flavour it wants to put in play.    Follow the trend closely and act decisively, we may just have a good summer ahead of us.

MA FWLT CROX,  oh yes, the big guns of DJIM earning plays this Q were just glamorizing the indices move today.   Of course, it'd be strange and potentially worrisome if these one do not participate in the rally today.    The game with these is simple, when market turns green and stays in course, it's almost a given to scalp some nice points off these.    But of course, if you were in these since the day we alerted (EPS), then you'd be in good shape whether you scalp or not by now. The big and easy points have been made here as it stands now, this does not mean you can`t make more points on these in a good market.

PCS,  if you took anything away from the Journal last night, well then you probably were on your way early today to a nice close and a 6% day. A NCH is not far away here.  TTC, another recent EPS buy in closed with a NCH.

RCCC CUB TRCR, call these DJIM crawlers or whatever you wish, they all managed a new high today !

ATV, this one had a very nice pop going into the earning tomorrow and it's capped by a late day sell off.   Understandably, nobody here wants to hold through the earning.   At least, those who have rode it for a few points and those who have a rigid discipline like us would not hold through the earning.   If it so happens the stock gaps up off really strong EPS tomorrow, we'd be right there to bid it higher.  

Well that's it!...nothing else is worth mentioning........NOT!. There was little Novcea..

NOVC, wow eh!....was that not the most exciting 30-40 minutes!!.  This turned into momo momo.  The most important ingredient in trading is recognizing the potential of a stock, so you can fly with it if-when it takes off.   You have 5 tool baseball players, B.Bonds was one but became just a tool...well this was 5 tool stock!..cheapness, float, news, big pharma, big $$ involved.  We've had some amazing moves here, catching a few at the bottom before a big fast move.  These include the FWLT bust out, the CMI squeeze, the MFW ride last Q and now NOVC below $11 before the huge pop to $17+.  These one day moves are powerful and we don`t give a damn if they last 30min or a day.   The result is the same.  You can do in 1 day, what takes some weeks,  months to do in the way of a return.   Our summer was made today in less than 30minutes, but being the idiot traders we are!..we were looking for more to trade within minutes.  From the emails we received today, quite a few did very well too and might be going on a summer vacation..lol.   The rush of a big win just keeps us going for more day after day, so we`ll stick around and look for more.   Usually, we would just leave a play like this after giving it one big whirl.  Instead, we were buying some back as volume picked up late in the day.  CNBC always helps.   Like the ACOR, VNDA, DNDN`s plays,  we put NOVC into the speculative DJIM room and will trade it day to day, hour to hour now.  To us the easy money has been made and that is what we first look for in spec stocks.

Short week..

Boy it definitely feels like a long week to us.  Today's market is typical of summer action with exceptions to a couple of plays.  Really no conviction, somewhat expected after yesterdays move.   Most of the plays, according to our book, were trading in a fashion where we really don't care where they end up at the end of the day.   Hope tomorrow brings a little more action, even some volatility would be nice because today was a real snoozer.

MA, this play looks as though it can rest some here.   We liked its strong action for the past three days in a row but we feel even the strongest stocks should rest after a good move.   Given the float of the stock, there's a good chance that the stock may rest around here.

RCCC, this wireless play just keeps on moving u, fetching $33's today.  Right space, right time.

MFW, is another old DJIM flame that we bit some on late in the day. We like the move it made yesterday off a morning sell off, rebounding to finish strong. Today it carried on.

ESEA, we are adding this one to our watchlist and we've added a very small position today.   This one is in the same business as TBSI and both are exhibiting good strength in this market.

DJIM #23 2007

Last weekend the hope was a few billion dollar M&A deals to get the market stimulated again. A few billion turned into 60 billion worth of deals or more brought back from the Hampton's. Our one concern to stymie this market was if the Shang' would sooner than later unravel our market again.  A few did their best trying to make the stamp tax a double shot of the Shanghai surprise we saw early in the year. We didn't even touch on this in Wednesday's Journal because we saw it as a non event. As far as we're concerned, the Chinese government is gonna do things their way and it will take a few more maneuvers of this type to cause the bubble to burst and spread to here.  Likely they'll be careful now after the early year swoon.  Soon after the FOMC minutes came and we were off to the races.  Well...races, but not what we would call a sprint!.   Still...what last week did was provide some DJIM stocks an opportunity to come of their shell and play....So on to some names heading to the trading week...

TBSI, we are all familiar with this shipper now ( #8 IBD ), we were adding late in the day and think this is ready to resume upwards. While ESEA looks quite extended, TBSI keeps putting in tails off the 9ema (showing support).

ESEA, this shipper intro'd Thursday night turned into a 16% move come Friday. Yes, a full 16% as the open price (13.40) and later a dip gave a chance to catch most of this move. Of course, we took some profits but we were back for more during the day. The PE seemed to be below the norm for these shippers and probably helped out its cause.

DRYS, is another Greek shipper we took a position in.  If this sector continues to climb, we like where this one sits on the chart to play along. This is a good and fast mover when caught at the right time.  We took a smaller position as we wait to see if this has the ouzo to bust out.

MR CYNO, a couple of names here for months made it to IBD's front page this weekend as both busted out to new highs. CYNO was basing between 30-32 for about a month, while MR is getting quite jumpy, you really have no idea day to day what it is going to do.  Sometimes with quality names you just have stick it out.  The front page coverage might get them some more air this week. We'll see...

PCS, TTC, MFLO recent pick ups closed at NCH's or close.  A few others that have been around longer at DJIM.. GTI NTLS RCCC TRCR also remain strong.

FWLT CROX MA continue to get DJIM trading dollars, mostly on positive index days.  Not much can be said that hasn't been said about these stocks since their earnings.

NOVC, as we said, the easy money has been made and we are only looking to trade it when there is some signs of life. The biggest mistake you can make is trying to get a piece of NOVC, if you missed the first move.  Too may are looking for a repeat move.  It's not going to happen to that magnitude without more news, so there is no need to feel left out.  Also, do understand it is inevitable with biotechs that firms come out and raise targets to very high levels. They have no choice as now there is finally news.  These targets, sometimes 50-100% higher are looking a year and more down the road and are calculating a perfect storm of everything going right to that time.  The chances are a biotech will leave your mind in a week or two as another takes it's place.  It does with us.    Unless you are a long term speculative investor, you are unlikely to see those price targets hit for NOVC, CYBP etc.this summer.

PLPC, bought a few shares to tuck away, maybe this has a little HTC, EML in it. These types are only if you have space and time to spare in your book for some not so liquid stocks.

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!

..What was that?

Well...that was what is a typical summer snooze off!. The indices churned and churned with no catalysts ( eg. little M&A activity or Eco numbers) to serve up any conviction on either side.  Maybe we shouldn't complain after the excitement lately, but if you're doing this full time, days like this make you cringe at the thought of more listless days.    Luckily, there were a few DJIM gorillas to get some through the day. Both MA and TNH continued their extended run with 4% days, another $100+ gorilla FWLT had a nice follow through day and closed with a NCH. You wanna talk about extended, how about that LPHI!.lol.   It probably causes a few hearts to skip a beat the way it trades intraday, but at the end of the day it closes at the the days high once again.  When a stock does get extended you might get a RCCC reaction day sooner than later. Oh yeah this one has bounced nicely off 9ema around $30 last so keep an eye on for a trade possibility here at that point.

Besides adding CMED off earning early on,  there was nothing new we bought.  We actually did more selling today, reducing some position sizes such as in KHDH, now KHD on nyse just to lock in some profits. 

KMGB shrugged off the IBD omission nicely.

MFLO reversed nicely back to $23 intraday. This one is fixated on $23 and it makes you wonder how many shares can go at that price before something positive happens.

Hopefully tomorrow brings some excitement..with a bullish bias of course.

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...

.

...CUTS like a knife

..now it cuts like a knife-- yeah
but it feels so right..
Oh now it cuts like a knife..
Yeah..but it feels so right...Yeeah..

Now we truly know what our fellow Canuck was singing about !.  It was about consecutive rate cuts from the Fed down under.   Yesterday.. the shorts were squealing and the longs were singing as the market squeezed the shorts lights out.   You can read all about it and you will hear all about the ramifications of the Fed cut....let the spin begin.... but we've got people to see.....things to do....most importantly stocks to trade!. We are now done with October and are on to November, which is always a much better month of trading as we lead in years end.  Historically, consecutive rate hikes are liked very much by the markets, it seems the market forgot that for a few minutes yesterday before getting its memory back and started to look forward........So, let's get on to some new names emerging from earnings that we are monitoring and/or trading ...

MA,  this was on all screens premkt yesterday as it traded off an excellent report.  If you've been here for awhile you remember MA well and had its earnings day circled..well we try to circle as many as we can for you on our earning dates page.  The company said any softness US side will be "cushioned' by Global growth.  This was the same song from previous Q's and this idea has always worked well for MA's stock price. If you didn't get a position yesterday, you might want to wait for a pullback, a pullback on a downgrade based on valuation (you always get these after a fast trip up) and make this a quality holding.   Reports Q3 (Sep) earnings of $1.80 per share, excluding $0.51 from the partial sale of the co's investment in Redecard S.A. in Brazil, $0.38 better than the Reuters Estimates consensus of $1.42; revenues rose 20.1% year/year to $1.08 bln vs the $1.03 bln consensus.

PSEM,SIMO,SIRF,MICC.. have you noticed the reaction of some earnings the barely beat or giving in line guidance moving nicely (PSEM SIMO).   Well, if you didn't we're telling you now!.     Simply, we haven't seen such action in a long time and this is a good thing as we will have more opportunities to trade.     It looks like we won't need a big EPS headline to get a stock moving this Q.   We've bunched these 4 to watchlist..you must have 4 lags you can move a screen back and replace with these.    We'll do some homework on these over the weekend and if you see the names here into next week....well then you know it should be on your primary screener this Q.    MICC is a foreign telecom/cellular name you may remember from DJIM when we were trading it as a takeover play with a few like China Mobile interested.  Anything foreign with its foot in a growth business is good with DJIM.

STV, LFT...as we scratch our heads, we come up with ideas it seems.;).  The action in these two has been surprising in one sense, but that is only if you are thinking the past here and expecting momentum to be here on a daily basis.  Yesterday, we had interesting action in some China names early, the FXI was heading to recent highs, the China energy plays were moving nicely and seemingly there was one thing missing in this scene and that was the participation of these two  IPO names.   What reaffirmed our long term and even short term view of these IPO's is that they behaved so well as the market tanked after the Fed decision as we noted.   Well, we all know what happened after as these spiked so nicely.   If you're in for the long term this should give you confidence, if you're short term you now know the power and speed these have and had yourself an easy in and out trade.   STV has been ranging nicely and there was powers at work eating up the $38.00 giving it even more support.   We hope this move is the start of these getting back on radar of momentum traders.   Also YTEC's chart is coming together, so a closer eye should be kept on it.  EJ another new high.

CYNO, GTI ,  past DJIM plays out with earning this morning to watchlist.

No second chance...

It seems these days, the market isn't giving people much of a second chance to some of the speculative plays.    Of course, if you aren't into them, then there's really nothing to worry about.    Market opened weak but ended way higher today.   Again, we have the big techs and financial companies to thank for.   While indices seem to have a blast today, it's actually quite difficult for us to find good plays from the smallcap land.    Now only if we knew how this market would turn out, we'd have ditched all our small ones and we'd be gunning for the big ones.    Unfortunately what's happened has happened and that is something we just have to live with.

Here are some plays we are tracking/playing..

China Plays, most of the China plays did not really participate the rally with the exception of EJ.   Speaking of EJ, even though it's had a really good day but we think the run-up is a little extended at this point and we'd wait for a better entry point.    While most of the quality China plays stayed relatively unchanged, some of the speculative ones are just way more wild and did not fare that well.    Is this the end of the sector move?   We don't think so!   However, we should point out that you still have to distinguish the good quality earning related China plays from the speculative ones. VISN, is a quite cheap for an IPO, unfortunately after initial 10% run gave it up and starts from scratch.

Solar Plays, with the exception of JASO, pretty much all of them went down today.   We think it's best for them to find their footing for another day or two before taking a look at some of the setups.    There's absolutely no rush to buy them right away.  Still, note two buy ratings on SPWR/YGE this morning to stick in the overall picture.

MA/ISRG,  out of the expensive names, these two(recent eps winner) managed to not only break out, but notched a nch.    We chased some during the day and feel they are very much part of any index rally.

PSEM, this little technology company finally made a move today.   It's currently sitting right near the previous high.   It's going to be interesting to see if it can really bust out this time or not.   We got our finger on the trigger and if it does kick it up,  we'd be right there to chase some.