DJIM #14 2007

Looking at the past week, we sure had a lot of turbulence news wise yet whole lot of nothing from this market.    Being a trader in this market environment, we have to accept what's happening out there and constantly adjust our game plan in order to cope with what's working.   Basically, it was a grind out there and whole lot of time was spent on watching things that may not develop.   Well, this is one part of the trading world that we have to accept and we just have to deal with it to the best of our ability.    Because our trading methodology is very short term and most of our plays don't last longer than a couple of days or weeks, we always tend to assess the situation bear in mind our trading time frame.    One good thing is that last week is in the book and we are setting our eyes on a fresh week.   We are also getting closer to te earning season.    While a few little biotechs dominated the stories last week, we still had a few DJIM type of stocks making some nice moves.

MFW, this is probably the result of a long base forming action.  This one held up reasonably well during the correction and it caught our eye earlier this week on a breakout setup.   It did not disappoint and closed the week near another 52 week high.   We are definitely keeping this one on top of our trading list for the next little while.

CYNO, despite the minor pullback on Friday, we think this one is still very much in play.   The 9 ema is catching up which should provide support for this one to gain some footing for possibly another assault higher. We will look to play again. For those new to DJIM, this stock was an alert before being added to IBD back on Feb 15- CYNO, "Accumulating some of this one. Reported recently. Like chart, IBD #'s and float. Low 23's"..Posted on Thursday, February 15, 2007 at 01:49PM

JSDA, so Cramer jumped on this bandwagon and we are definitely putting this one on top of the trading play list at least the next couple of days.   Despite how much you like or dislike this TV guru, we think he can bring enough exposure to this stock for us to get a couple of "easy" tradable opportunities. Also, it was one of the biggest decliners in IBD last week, so look for some support.

TGX MTOX,  A couple of the best performers Friday are past DJIM EPS stocks . Some of you have definitely kept a closer eye on these two than us.    Given all the biotechs news we had last week, it's understandable that these small medial equip. co. can also be put in play.   We've always been partial to this sector and many of our past winners have come from this sector.    Yes, these ones are back onto the top of our trading list. This recent IBD addition has a column on it in weekends edition. As you know we are not shy about buying moves already made.

TGX was a earning play just below $4 in Alerts on Jan 30. here is a refresher on it...Briefingcom- After being a momentum stock in the late 90's, Theragenics fell sharply a few years ago and went through a restructuring and fell off the radar. However, the stock is showing signs of life again and could be making a comeback. Yesterday, the stock traded to a multi-year high following a strong Q4 report. Sometimes a big qtr can put a little company on the map for a sustained move. The co is a medical device maker and it's the brachytherapy segment that is the driver here: its TheraSeed device is used to treat prostate cancer without the drawbacks of surgery. Brachytherapy with the TheraSeed device involves a simple 45-minute, one-time procedure. Typically, a patient receives local anesthesia and does not feel anything below the waist. The physician then inserts thin, hollow needles into the prostate gland and deposits about 75-150 tiny seeds. Most patients leave the hospital within hours and resume routine activities in 2-3 days. During the next few months, the radioactive ingredient, palladium-103 (Pd-103), fights cancer from inside the body. The co says its treatment produces results better or equal to surgery... TGX's Q4 results were impressive with revenue rising 30% yr/yr to $14.8 mln and EPS of $0.05, ex-items, vs a loss a year ago. The co has now delivered four consecutive profitable quarters for the first time since 2002. The co also says it benefits from an important federal health law signed last month which protects reimbursement rates for seeds... Bottom line, TGX moved up on this report, but it still has a market cap of just $143 mln. A strong qtr can put a little known stock on the map, so it's a name to watch as it attempts a comeback. Mkt cap

WBD, we added a small piece on Friday after noting it on Thursday following earning. WBD was an original buy on DJIM back in mid '60. What a nice hold it would have been to today. We are looking to add if this trend continues, we would be sellers not much lower than our pick up in the 79's.

Solars, crude oil definitely stole the spotlight last week.   One would think solar plays would catch some fire as well.  Well, we think it's just a matter of time.   Now we just wait.    The point is, we just can not afford NOT to keep a close eye on these solars.

Let`s get earning season into gear.......

Plenty of nice money making  EPS plays started here last Q including USAP CCF VTRU VARI MTRX SYNL EML HDNG CYNO TRT..again HURC  micro caps TRCR TGX NWK AVZA CSV

Note: We will not be processing renewals or re-activating turned off accounts for those who (signed up Jan 3 or before) during trading hours.

Dow 13K?

Who really cares?   However, the CNBC show has to go on and "intelligent" topic has to be discussed in order to attract viewership.   In all honesty, those who trade stocks for a living don't really have much of a choice but having this CNBC on in case we miss some important headline.   Ok, enough rant here!      Market has once gain showed its inability to march forward and much of the action came from the smallcap land.  With a 91bln bank deal overseas leading the usual Monday activity, we expected more follow through today.  This is a little bit early to talk about but we are about a few weeks away when the seasonality factor kicks in.    Sell in May and go Away!    Ok, so for those members who have billions of dollars at stake, don't blame us that we didn't warn you.  lol   For the rest of us, life goes on and we will adjust to whatever the market environment when changes happen.  There are a few interesting setups today and we are going to go through each one of them....

KRSL,  this one gave us a very profitable trade a couple of months ago and we never take it off our watchlist.  It merely sits in the back of the class until it decides to stand up one day ann makes itself  noticed.    We noticed it earlier today off the news that the co. received a contract(MOU) from UTX.   This is essentially the first good news we've heard from the co. since it reported its last earning.    We'll take it.  It's good to know they will continue to be busy going forward.  The reasons for a move has been summed up in the alert, so we are not going to repeat here.   One thing we have to point out that this one trades very thinly and it can go up as quickly as it can go down.    We got in the $23s and will act accordingly.    Chasing blindly without a plan is definitely not a good idea with a stock like this one.

TRCR, this one reported earning after the close and essentially this is the best quarter for this co.   It beat year over year, also up nicely sequentially.   This one has had pretty steady action since the last report so there's a good chance that it will continue the same pattern.   Although there's no exact telling how the stock will behave tomorrow but based on the AH action, making a new high is not out of the cards for this one soon.  We might actually keep an ear on the CC late morning, or will just watch the action at that time to possibly make another move. 

SILC,  we are going to monitor this one really closely tomorrow because there's potentially a chance for this one to break out.    We believe this is also due to the pre-earning run and eps date is 25th of this month.  Hey, we got one from DXPE Friday and today from USAP, so why not the SILC'ster!

There have been quite a few names that made some nice moves today..SYNL MTOX CYNO USAP. A few of them are the quiet types which include TNH GLDN SCHN GMRK ROS.  We are glad that there's enough action out there despite the weakness from the major indices.

...lets's see what the chips can bring tomorrow off a couple of good reports AH

Taking more out...

Of course, as we start the day, nobody has any idea how that day will turn out.   Being a trader, it's extremely difficult to prepare yourself "well" for the day.    If you have been in this game for as long as we have, the hardest part of the trading is to anticipate a market "turn".  Sometimes you just go with your market sense, sometimes all this is, is your gut.  Well, we feel today's action is discouraging at best.    The action from indices may be deceiving as there's really no sense of urgency of cashing out.   We feel that under the circumstance, it's best to be more cautionary as oppose to hunky dory.     Maybe it's just us, but we definitely feel that certain plays are getting a little bit tired.  All this might be coinciding with the driving force recently and that is earning season is wrapping up.   How can we tell?   We watch the combination of volume + price action and their behaviour relative to the overall market.     Many if not most of our trading decisions are based on our past experience, and so we decided to reduce our exposure about mid way through the day.     On the other hand, if the market decides to give it another quick push, we'd be there quickly and do our part.   As always, buying decision is far more easier and quicker to execute than selling. At this point, we think weve had a great earning season, we are not about to get lackadaisical look on our faces watching our profits wilt.

There is a couple of stock setups which we feel we need to mention today and let's get right to them...

NGA, this co., oddly enough, announced that they are going to have a 3 for 2 split.   In our opinion, what the heck is the management thinking?  Yes, we definitely do not like this announcement and we reduced most of our position earlier during the day.    The stock, in our opinion, is liquid enough which does not require a split to attract more "investors".  We don't go with management reasoning this will make NGA more liquid and available to investors, including institutions of course.  3 for 2, just doesn't cut it.  Funny thing also, we'd also highly doubt that most of traders who are involved in this stock are long term investors.   In our experience, companies which have announced split at this price level have not fared well, most of the time.   Of course, we aren't just going to ditch this play for good and stick to our emotional opinion.     The IBD play is still on target but we'd be more cautious if we decide to get back into this one again.   

CROX, if it wasn't for the weakness of the overall market, we might have been a bit more aggressive with this one.   Nonetheless, this one had a new closing high and we added a few times to day, including near the end of day.

MTOX, this one actually turned out to be possibly the best trade of the day.   We threw out the 'lead' before 10am and soon were in it mid 26's for a run to 28.  When you have a nice quick gain and the market shows signs of a turn, you have no choice but to give up your new pick. Maybe..we should have bought back end of day as it fell back down to low 26's, but we were just not in the mood to get cheeky.

SPAN, RCCC, NTLS, AFAM, these recent alert plays are humming along quietly in the background and we've used that to sell some just in case.  These have been secondary plays in sizes as the NGA, IDSA's, LXU etc. have been the primary plays lately.  We still have some scattered shares of these, but it is nothing that can do any sort of damage to us.

ERS, we picked up some AH's, just couldn't ignore the 40% revenue increase with the stock hovering near recent low's. This could be just a flip into any strength tomorrow. We'll see if there is any appetite for this old gamer.