DJIM 1st Edition, 2007

First of all, we'd like to wish every one of our DJIM members a Happy New Year.     As we are kicking off this new year with our first DJIM weekend edition, we'd also like to thank each one of our members for their continued support of DJIM and making it a very unique and special place to be.

Toward the end of last week, we had a little pullback from some of the momentum favourites from the early part of the week, especially Friday from Thursdays runners. We'd think it has had a lot to do with the fact we were heading into this weekend with a 4 day rest, and also the fact that some of those runners just had a way too big of a run-up in such a short period of time.  This was actually widespread come Friday in the markets.   As you are familiar with us, you know we've been very vocal and adamant about taking profits. This is especially true starting off the year, as it is now about 'new' points and adding them up through 2007.   Some of these plays such as FFHL GROW, just cannot continue their run-up without pauses, assuming they are still in play.    Nothing goes straight up, so bear that in mind, we take profits as the play pauses.     If we don't take profits when they pause, we might be looking at a 10 to 15% pullback and a very useless alert that was once very profitable.  This is very common when dealing with small caps and momentum plays.    Because we never assign any artificial price target or predict long term direction, we never have to worry about catching the top, nor we have to worry about making a perfect trade.    What we are really trying to achieve here,  is to capture every trading opportunity that is presented to us, early, and sometimes very very early!     When you start trading those potential 25%+ gainers early, you are almost ensured some good gains even if your trading skill isn't as experienced as some of the others.   In time though, the more trading you do, a more improved trader you'll  become and better you'd be at mastering this game.

here are some stocks of interest from last week.....

FFHL, in our opinion, this play last week really highlighted what DJIM is sometimes all about, catching the momo early and often.  Most of you have seen it through 2004-2006.  A couple of these plays a year, if attacked properly can make your entire year or at least give you a nice cushion to trade/invest off.    This is not saying that we'd be getting a play like this every week, but when it comes, we'd be there first to give members a heads up.    From the look of its action near the end of the week, we'd be looking for another entry point next week.   At this point, we are looking for $17.50 as potential b/o point with good volume for a possible entry.   So you'd ask why not buy it now if we think it's gonna go back to mid $17s?   The point is, we don't know when it'll happen or if it's going to happen.  Last week, we couldn't wait for the entry we were looking for as all the stars lined up at a lower price.   We just want to make sure when it happens, with a crystal clear sign, we'd be there and play it again.   Judging by its prior move, when it moves, it just doesn't settle for a buck or two.     At this point, we don't want to risk anything and only want to play the "sure" or "high probability" money.   This can be either viewed as stubbornness or discipline, but we just like to think of it as a smart way to play these momo stocks.

HMIN, this one gave us a good pop last week and it looks like it wants to consolidate for a bit.   Unlike FFHL, we think HMIN is definitely a more legit play which has alot more staying power.    You can say that HMIN is a pure China economy play and we like the sound of it.   As long as the trend is pointing up and shows no sign of reversing, we'd be buying on dips.

The Asian markets, ones that are open today were hitting new highs today. The Shanghai(China) is closed but the chance it might play a little catch up is probable when it opens. In this case, DJIMS Pacific-Asia stocks like the above and JST, MR, EDU still might catch a bid early tomorrow.

FSYS, the increase in volume last week, and with corresponding price action, caught us with a slight surprise and we are definitely giving it more attention in the coming days.  

Most DJIM stocks you can review in charts are in the 'hub', they've flown long haul and now are back on the ground waiting for a flight plan to continue on. Basically, most have seen some distribution, profit taking yet look no worse off as most are near their highs.  It is best we let the market find a remedy for the hangover from late 2006.  In the meantime, we will seek out new plays if these are not ready to lift off again.

A sign of things to come?...

First trading day of the year, it sure was rocky, to say the least.    What began as a all out rosy day turned into a scary moment in the afternoon but only to be saved by an uptick during the last half hour.    Volatility is in the air and we can smell it.   Some of the momentum stocks reversed intraday and got hit hard and some struggled hard to hold their ground.    Boys and girls, welcome to the new year!   One thing that we are sure of, regardless which sector is working today and which sector is not, the action we've seen from the market today is caused by the exact same players that were playing these same sectors a few days ago, or a few weeks ago, or a few months ago.    Blame on the Fed Minute, blame on the oil, or we can simply blame ourselves for creating such big volatility.

When it comes to trading stocks, what we are really doing is not trading the stocks themselves, but rather we are trading against the people behind those stocks.   It's a competition and it's a game and majority ALWAYS have the right saying in a stock.   We have to accept it.    So when the market turns intraday today and even the mighty FXI could not hold its ground,  we have to accept the fact of what's happening and act accordingly.  SELL..   How many times have we seen a +100 Dow day reversed into a -40?   Not many times!   This of course raises our caution level considerably and therefore we have to act accordingly.    There's no pride in this game, it's just about survival.   When you can actively survive in this game for a long time, it means that you have done something right and it also means you probably have won a lot.  Ok enough of this philosophical crap and lets move on to some real actions... lol

China stocks, namely the ones we track, HMIN EDU MR and BIDU (more for the trader) all had a relatively good day.    Even though MR and HMIN did not finish near their high of the day but given how bullish we were on those stocks last week, we all should have had some to lock in for some profit and /or if you played our idea off yesterdays Journal that these might catch a bid, especially with the FXI gapping up 3+ points premarket and these not far off Fridays close.  EDU was still left behind 15 minutes into the trading day and so we tossed out this idea at $34.20's.  We still like HMIN alot and think this one is definitely in play, given the recent surge in volume.    We are very much in the camp of buying aggressively on dips for HMIN while adding lightly on strength.   Why?  Well it seems this is how this thing has been rewarding us so far and there's no reason to change the strategy.    MR, some dude's been putting an iron lid  on this thing at $26.    When so much firepower has been absorbed at $26 and stock wouldn't go any higher, we think it would've dropped even without the index help.    Give it some more room to work, buying dip also works well with this one.   Both EDU and BIDU looked pretty good at the close and both showed that they are busting their respective downtrend.   We are definitely keeping a close  eye on all these four stocks and looking for opportunity to add.     One word of caution though, we are only playing the quality China stocks at this point and there's really no need to spend our time or capital onto other " wannabe runners".    We do make FFHL as an exception since we are familiar with its play and it's also very much in play still.

One thing you might use now is the FXI, today you saw how hand in hand this acted with our quality china stocks..just look at 10min chart comparison.  It reversed...it played with the gap, it turned and DJIM's followed the whole way!

ATNI, this one for some reason had a late push and we alerted all our readers on its break out.    We don't know what caused the surge but we were following the action.    The volume is very good on the breakout and this one has had a pretty strong basing action last little while.   If this one follows up, we are likely to add more.  See the chart up that showed this was not far from breaking out and should have been on radar.

POWL, we alerted this one earlier also and thought it had a chance to breakout.   Unfortunately it suffered a reversal as every other stock did an hour later and did not close anywhere near the high.    We still think this one has potential and the close today only put it right in the middle of that tight trading range.   We'd keep a close eye on this one.

ABM, it's almost hard to believe that a stock can consolidate for so long within a 50 cent range.   Only from NYSE perhaps!   Given the surge in trading volume ever since it released earning, we think that this play is far from over.    Once the institutions establish a trading base and enough shares get exchanged hands, the next step should be higher rather than lower.    We'll see if it creeps back above 9 ema next couple of days to assault for a new high or not.

ROS, well there's really nothing we want to say other than noticing "who's in charge today"!.  Seems just yesterday it was alerted at just under $38 as a play off the other Russian telcos.

The bottom line, earning season is almost upon us and it's ok to have some volatility going into the earning.    Again, we've said this prior to last earning quarter that market rarely crashes before the start of an earning season.     At this point, we are trading smalerl sizes and taking advantage of some hot sectors and a few tradable opportunities while we wait for the earning season to start.   When a really good opportunity comes along during the earning season, we'd pounce on it hard with all we got and put another 25%+ gainer on the plate.

 

Reversal of fortune?

who cares, right now!......how 'bout just knocking some sense in again about protecting and building our own little fortunes as we start to experience this daily volatility thing.  This is old hat to the experienced traders, but this is something we all need to be reminded of at times.  Today a couple things came up on DJIM that makes this necessary.  One was early in MTRX.  We always say let the markets action dictate your move, the action, the volume will tell you what it thinks of earning / news and give you a clue as to what to do.  Sometimes its obvious and you might as well get your 'ball spikes on and join in the frenzy..aka FFHL type moves, other times 40k volume premarket as in MTRX will leave you holding your shorts on a white stick as you stand on the 'top' looking down at the action at 9:35am.  Do you want to be with the 1 million shares seemingly traded around 16.50's today or be amongst a few at high 17's, some 18's premkt.  It's lonely at the top!. We tried to throw caution in the morning note again, there is more than one buy opportunity after the exuberance dies off and it will come at a decent entry.  Be patient!.

Back to basics on MTRX, the numbers are very good but unfortunately come on day 2+ of the massacre on the oil patch.  Matrix Service Co beats by $0.13, beats on revs (MTRX) 15.10 :Reports Q2 (Nov) earnings of $0.31 per share, including options charges, $0.13 better than the Reuters Estimates consensus of $0.18; revenues rose 31.2% year/year to $166.4 mln vs the $138.4 mln consensus and raised revenue guidance by 10%.  The instit's hold over 90% and today they churned this at recent resistance.  We took a starter early and added a bit more at the close as it showed it could hold that resistance at least for today.  You might remember our intro of ABM pre market back in December. The first candlestick looks similar as MTRX today and we alerted the next day I think at 21.50 to our buy in and it rocked past that candlesticks top.  That ABM is also a big instit holding and maybe this will play out in a similar fashion.  We touched on ABM last night, everything still holds..but it just looks a bit better today at the close.

The other matter came up in the forum. Yes, we recycle stocks..but to recycle they need to lie in the bin for a while. We do not go buying the dips the next day or the day after.  Let the raccoons frolic in the bin.  We avoid the downturn in a stock by going somewhere else, sometimes its just into cash.  Yesterday we said the 'FXI' is the fix right now in dealing with our Asian DJIM's.  We got a nice run the past week and yesterday as the FXI turned,  we were locking in those gains.  If we put in the forum the FXI is at the gap open and it could get worse...we mean it and wouldn't be standing around at the gap open in a falling market like yesterday to see the gap potentially close.   So no ...we wouldn't be adding the MR, HMIN back today when the FXI has closed that gap pre market at $112.  This can't be a buy signal during the day if we are using this ETF as a measuring stick right now to our China Stocks.  We've had MR,EDU since September, recycling it over and over again but never the next day.   BIDU, is an exception as it trades with the internets and today that sector was not a bad place to find yourself.   Speaking of dips..GROW is swimming in it and we ain't jumping in on such a break of the 9ema.

What we always prefer to do is find something else, something else that is near a high, breaking a high or in the beginning of a reversal.  Something like a SYX or a HRT or more ABM or a new play that might catch on like MTRX.   Basically we trade the "GREEN' not the "RED" stocks. If you don't like GREEN and prefer Pink, Orange, maybe your trading platform will allow you to change the colors around. Whatever color you choose, it's best to trade the stocks with a + in front of them in our book.

ROS has been renamed the Russian Rocket...this is just funny and explains those huge lots on the bid we talked of recently. There's been one shakeout recently to low 40's, one might come again but in the meantime adding as this goes higher.

ZOLL is just ZOLL, a nice and quiet medical device stock that doesn't really care about much about the markets internals. Steady she goes...

Besides the highlighted stocks above, we are trading some AMK on the speculative side of things today.

The funny thing we kept mumbling yesterday is its Jan 3rd,2007, who the hell cares about the December 12th, 2006 FOMC minutes.  But it doesn't matter how silly we thought the Times Square NYEve Ball drop was...the only thing that mattered was what the market thought.  It's all reaction..action and we just play along with it....yesterday on the sell side...today on the buy side.

DJIM #3, 2007

For investors the best thing about a 3 day weekend is it gives an extra day for M&A activity to kick in. This weekend surely is not disappointing in this department as lots of activity is coinciding with the markets playing with highs.   Hopefully, this gets us off on the right foot into a shortened,  but what we expect to be a busy week.   The flurry of earnings will hit us this week and hopefully we can hit back hard by buying into DJIM type earnings winners.   This is the time we/you might want to reduce sizes of holdings or get rid of stocks completely stuck in the  'hub' with no immediate flight plan.   It is best to have cash ready and not be forced to sell things off to get in on a play early.   There is always more than one opportunity to get in on a DJIM stock, but sometimes the first is just an easy gift you can close early and then look for another entry..examples might be like a SNCR move last week but one with earning or an explosive VOL off earning.    Also...don't forget to look for earning dates of your stocks!.  We have enough on hands here in Canada following US holidays, so help us out on DJIM stocks...we knew EDU had earnings Tuesday,  but we didn't know we had a holiday today till about 11 am on Friday..lol. We almost broke our 'no holding rule' into earning with EDU!.

Heading into Tuesday,  these are our top hold/ hit lists plays at this time in no order..

CCF-  Chase Corp is one of those small float (2.3mln float) Amex stocks that hides with pretty darn good earnings.   Friday it reported its profit doubled on a 26% revenue increase.  This .62c Q follows last Q's .69 on similar revenue.  We also like Fidelity owning about 50% on the the instit. shares( 400k).  If they want more, they can get ours now in the $30's!

OSIR- made a nice comeback late in the day Friday.  It seems this one besides the FDA news last week is starting to be looked at as a stem cell stock of sorts.  This explains the volatility the last 2 trading days, Osiris is also developing stem cell treatments for cancer and heart disease.  A new NCH has us looking for more in this name, but now we are looking for more volatility that made us run out of it, Thursday.   Easier to deal with volatility if you know why its there, we didn't Thursday.

CCOI- just a steady follow up Friday from its big day the day before. A NCH and a stock that is up 4.5 points in the New Year so far, almost 30% and is sure to be picked up by more eyes, but it also should consolidate sooner than later.  So be careful jumping in!.  Some of you are getting in a tad late on some plays and expect miracles too fast!.

ABM- we are satisfied with this steady performer.  A NCH to end the week, don't forget we have been on this since $21 and the big push the second day after earning.  This is heavy on institutional support,  so this pace is not unexpected.

MR,  is back in the picture... we like the move Friday and the fact it held it by the close.  We added some near the finish and think this one might be one of the better plays to start week as it has climbed nicely above its 9ema.   It could be just MR, it could also be EDU following earnings and HMIN might not be far off ( we would like to see 40+ before really taking another stab at it).  FFHL should get some play but there is that supply of ones wanting to get out overhead to consider.

AMK, might be the other top play heading into the week.  This is a small float with a nice earning story that is reporting early February.  It just looks like a typical 9ema play at this point heading into earnings.  Wish it just take out Ceramics from its name from its name!.  Can't help but think pots when you first come across it!

INFY, we like it for its EPS, its business and where its at (India).  A few targets in 60's already out following EPS. This might be a nice longer term hold.

CENX,  a play we noted off AA earning is doing well but might want a rest in the 43's. It opened just below $40 on Wednesday following AA's eps.  Again, if you want a nice aluminum stock to hold for the AA story, this is it for the longer term.

MFW,  looks to be one to pick up more of on the dips. At this point as it has some interesting intraday moves and sits close to a high.

SNCR,  seems panic has set in with some, yet its only finished day 3 off news and is only 6% or so off highs. There is two camps here,  one that was getting in $15's Tuesday AH  and then early Wednesday and the second camp that was procrastinating and moving in mid $16's and higher.  Basically first camp has been distributing and the second camp just needs to be patient through it.   If you don't believe in the story then just move on.

VOL,  momentum begets momentum and that is what happened to the upside...and to the downside.  It works both ways, kids. If you've never seen it before, you just passed MOMO 101 last week...hopefully in one piece.  Violent sell offs are nothing new in something that goes up so fast.   Now we turn to giving this a look around the 9ema area.   At this point its only a look, we like to see a reversal begin before considering a entry.

MTRX, MTRX, MTRX one fine oily day it will move.

Some notes on other stocks in Alert/Update page. 

We better get ready...

Before you know it,  half of the companies out there may have reported their earnings already.  The flow is about to start. Frankly, we feel that this mkt needs to kick a gear higher to really start this earning season.   What we mean is that we want to see more volume and more volatility!    Good earnings get bid up and bad earnings get dumped kind of volatility.    When things are chaotic, there's always opportunity.    We don't want to speculate which sector or individual company is going to shine this quarter, but we have to keep a sharp eye out for outstanding report.    

Today's action from DJIM land is surprisingly quite good given the weakness in technology sector.     Of course, we are only concerned about individual action here and we'll let the talking heads discuss the theoretical side of things.    Most of the DJIM stocks enjoyed some very nice gains and here is a run down..

MFW, financial companies, especially the little ones like this definitely can trade on their own.  Come looking back, an entry point at $28 is not that bad of a deal.    We've been actively trading this one last couple of days .

AMK, as mentioned last night, we thought this had the best early chance this week alon,g with MR.  It didn't disappoint with a nice day.

MR, so it looked like it had a seller or two mid way through the day as it reached highs.  This one had above average volume today and we'd be watching it closely next couple of days to see if it has the juice to take out the old high and start a new leg.

HMIN, it looked like it almost had some steam to break out but only to come back some in the afternoon.    It's having a pretty stubborn consolidation so far.    Again, we are not eager to chase potential breakout but once it gets some push under some heavy volume, we'd chase and alert everyone at the same time.

GLDN, new closing high, there's not much else to be said about this one.   In fact, this is definitely the best Russian stock on our list right now.

CCF, slow down Jose.   To be honest, we actually aren't comfortable for it to trade into the $32s this early.  It was here for all high 27's/low 28's to snap up last trading afternoon.  We definitely want to see some base building here.   Let everyone catch some breath and accumulate some position.

AXR, though we did not actively participate in this most recent run-up, this one should always be on anyone's top trading list and its good readers have not forgotten this $90's DJIM.  Its been up in charts all along, so there's really no excuse to at least have admired this move..lol.   Honestly, it's not easy to chase a 30 pt move and we just have to take it as is.  If you played some, congrats to you but if not, no big deal as opportunities will come.   It is a little stretched at his point so we aren't looking to do anything here.

Some other stocks on our list that closed well include, GRC OPTM HRT OMRI.    One last note on EDU and future earnings, earning dates are to be played, not to be held through.  We didn't say anything cause there was nothing impressive about the report. Last report which was sensational sold off, so this one is no surprise.  Still, it's pretty good, it''s just the market doesn't care.  CHDX, this one was in play a month or two ago and today it broke out apparently on good volume.   Keep an eye on this one for potential follow through or not, it's not the most consistent day to day performer.  Another is a big DJIM flyer from last quarter, CETV which put in a NCH today on a gap. Not sure what the beef is here today! . Good stocks just grind it out over time and before you know it...boom...a NCH

cheers,

All focus on AAPL tonight..

Well,  it definitely looked like there's really no other interest to keep traders from staying up till the end.     AAPL's earning is out and now what?   At this point, we think it's more of a company specific news even though the strong shipment of ipod may spill over to some other component players but we are not going to get too cute at this point.    What was anticipated was also probably what was expected.    There are very few setups worth mentioning today, so we'll tackle a couple of the ones we like and a couple of others from the watchlist.

HMIN, perhaps we are not the only ones anticipating this breakout so the end result although somewhat encouraging early, but not spectacular near the end.    One thing for sure, this is among one of the widely held Chinese stocks out there.   The close is nowhere near the high and it was definitely dragged down by the poor index action.    We will call this breakout still but we aren't going in with any sizes. There are lots of breakouts, reversals your stocks may see, but it is always a good idea to take the gift in some size before the overall market catches up to your stock and diminishes the breakout or reversal gains.  HMIN and MEND are two examples today of this.

ZOLL, this is a little rocket that would go nuts off any good news.  Unfortunately, most of the gains were achieved within the first 10 min. of trading and it literally spend the rest of the day digesting the early gains.    It's very difficult to play these and unless you get in pre-mkt or right at the open, there's really not that much of an opportunity.  But, if you're an early starter, your day could be done by 9:35.   Basically, you could make a living off these early bird specials.  Of course, we have to also look at the prospect to see if this sets up a new leg up.   At this point, it's not very clear whether how much of the news is already priced into the action so we are less inclined to chase any more.    If an opportunity presents it self for a nice setup, we definitely will.   There are hundreds of releases every morning, we try to pick out what we think is best for you to closely watch, maybe get a starter position if there is some interest. Today, this was clearly the case as the stock traded in the $66's-67's pre market.

 PTT, is another example of a pre market note from last week that is doing well.  We are back trading some.

MR, now perhaps this is the way they do things over there.   Updating their guidance with a positive outlook while sneak in with a secondary offering at the same time.    From a co's point of view, they timed it right and damage is minimized.  For us the traders, we just hate to see the stock get derailed from some news like that.    This by no means the play is over.   We just think it may need additional time to churn over this "secondary news" or after they announce the pricing.   11 million additional shares is a big deal, in case those who aren't familiar with these sort of things.    Like any other plays with secondary offerings, this news will linger over the stock price for a while and we find it hard that it will challenge the old high any time soon.   Of course, anything can happen but we are going with our past experience for now and going light with this thing.  This is an example of letting the market dictate the action.   Initially, we had no clue of the secondary but the market told us something is not right.  We thought there might be cheap shares, just not because of an offering and small downgrade.

VOL, to play the bounce or not to play?   If you got a fast enough of a trigger, there's probably some intraday opportunity there to provide some quick action.   For those of us who are looking for a meaningful and sustained movement, we don't think it's ready yet.    Those monster 3 days rally followed by an even more wicked sell off is something that would keep some traders away from.   At this point, we are saying we don't trust this thing, yet.   There are also some longs who may be trapped to and are dying to get out.   We'll need to give it some more time.

IPGP,  played with yesterdays reversal some more and now finds itself back over 9ema.  Nice if you took the 23's, 24's yesterday, but we're not sold back on it just yet at these prices in this market.

Again, earning season is in the very early stage and we have many many more companies to report.  Most of the companies which fit our trading criteria have yet to report.    We are hopeful that we'll see some more good report this quarter and give use some real gem to play with.

Cheers'

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.

.6 .6 .6%

Guess we should take those % gains from the DJIA/SPX/NASD yesterday as a sign from the devil that we are going to have a down day to follow.  It wouldn't be a surprise, but on the other hand that is what most expected yesterday and we just didn't get it.   The herd was playing catch up and the profit taking didn't hit till quite late in the day.  By this time, we were sitting pretty as we had done as promised before the open and that is, " we will be selling lots and lots of yesterdays buys before catching our breath and possibly repositioning".   The good thing about yesterday is the morning catch up lasted longer than anticipated and it gave ample time to sell and get a price.  The repositioning of the sells really didn't happen as the market slid too late in the day giving the impression a little more selling might continue into today.   So why reload at that stage, is our thinking.  Still, there were some stocks worthy of intraday plays and others worth holding to see what's further up possibly.  Also, instead of adding to stocks recently talked or alerted to the day before like the GS that went to a morning high of $207, EXM mid 48's, DRYS almost 76, BIDU almost 285, TNH to 123 which we sold in the morning...we went went after a MR late in the game because it was making another new charge to highs and because the Chinese stocks is one area that held up the best during the day.....

EJ, is one we keep on holding. Yesterday, we noted possible accumulation. This was even more evident as this one churned and rolled all day in even another tight range.  Either this a forward to ML's initiation or something else, or its just a fine piece of China making a dandy cup and handle.  This is not trading as before when volatility was huge, don't ever forget those days. A shakedown is always possible and don't all get shaky knees if it comes.   We've had a nice week and considering Chinese stocks are holding their own, like JRJC, MR its worth some more time.  As said before, we added back MR and as far as JRJC, we are only flipping it here and there.

LULU, MELI, and even WX, interestingly the recent IPO's had very nice days, actually some of the best out there and we have put these on our potential trading list.  MELI, is a new name here.  It got initiated yesterday and is of the foreign AMZN, EBAY biz nature.

GS, as a follow up to possibly hold a portion into earnings. We got a very nice price/ gain and after MS's report, we'd prefer to stay out and play it in the morning if they announce nicely.  For markets sake , we hope its great and so we can live with any points we might miss.

ICOC,  we'd just like to point out the concept here has always been playing the possibility of "IBD100 inclusion".  The main idea is finding and getting to them early and going big early into the $15 level late in the week.  Remember NGA, GTI, IDSA even SYX???.  If not go back to April, use search and see the prices we started and read up on the strategy.    So, if a stock is already at $15+ on a Wednesday, it really offers us little incentive at that price.   Also, do consider that a $15 stock with a beautiful run has been drummed around and pushed by either other stock forums, hedgies...or whatever and if they use the strategy as us in the NGA, GTI plays, guess what they might be doing here?.  Well, at least we would be dumping to newbies after getting 1-2-3-4-5 pts. We'll watch for now and if we get a nice dip we might add ..anyways, we'll see how it trades these last 2 days and deal with it hour by hour.

At this point, even if we didn't reload our sells late in the day, we'd look back to these names as soon as we see the buying of pullbacks starts in the market.  And it will as any dump will be seen as a buying opportunity for those who missed this move and think this market will be going higher in the days, weeks and months ahead.  Buying the dips in this market will again occur.

a bunch of Yo- Yo's

Before yesterday's trading day,  we noted we'd be trading hour by hour, not a bad idea it seems as what we have is a bunch of yo-yo's day to day..hour to hour.  You almost have to make a choice of whether to hold these through the slips or just daytrade the heck out of them.  Unfortunately the 5-10% down days make it hard to hold till the next day and the daytrading mode might not be for you to capitalize when they pop in the other direction.  We've never been ones to daytrade these stocks, getting in and out of them on a daily basis was not the way we played them to these lofty perches they are sitting on.    Simply at this time, this is seemingly what you have to do with the DRYS EXM LDK GRMN FSLR JASO stocks or just hold through the volatile action and take some lumps on off days.   On any given day you are getting 5,6,7, 8 pt intraday trading range, with the close either at the low's or highs of that day in most instances.  One day they are tepid and lagging the overall mkt and/or red, the next day, they are flying.   Also, it is not so easy to say a stock making a NCH will continue on forward the next day.   Now, you simply don't know what the stocks we've covered this Q will do the next day.   There is only one way to explain the action and that is to understand it as a Q end phenomenon with a lot of hedgies flying in and out of these big winners of the past Q and creating this volatility.  Performance anxiety after a horrible July and August for too many of them.  Probably started padding the books with this China spec stuff and got the wildfire started.   We doubt the timing is a coincidence.   So...you have 3 choices really, one is take the lumps the bad days or even intraday moves can throw you...two...is buy and sell the same day ...or three...which is stay out completely to avoid the stresses of it all and await a calmer trading environment.   There is no reason to point out plays reaching NCH's Thursday,  you're most likely rolling the dice with most DJIM plays into the last trading day of the Q, even with less volatile issues like MR EJ.

Anyways..be careful today as the funky stuff will likely continue...either try get jiggy wit it on an uptrend or just stay out...

AZZ, an original DJIM play is one to possibly trade off today following earnings. $36 premkt.