DJIM #9 2007

What was a 4 day shortened week felt anything but as trading seemed to have come to a stall by weeks close.  The week definitely got started on a bang but by weeks end the buyers seemed exhausted and/or just not interested.   So what do you do?.   Well, if you can't buy anything with potential it gives you time to evaluate your holds and maybe sell some into the 'Green'.  It is not the time to get nutty and turn away from what has been working by chasing something just to make a trade.  It is always better to draw down you positions into the green then having to hastily sell if this lacklustre tone continues and we really have an exhaustion day when the selling hits hard.   What the week provided was for some orderly profit taking and by looking at performance of some DJIM's closely followed in the past 5 trading days, so it was not such bad thing or idea to scale down or add to a strong one or two like CSV.

KRSL 28% SYNL 13%  ONXX 12.1  CSV 8.7  TRT 7.3  BW 6.5  CGX 5.9  USAP 4.0 CCOI 4.2 OEH 3.4 GLDN 3.1..and HURC at its highs was up 15% since alert buy in.  Taking into consideration the last few days, these returns at the end of 5 days of trading is nothing to sneeze at.   The week was not all pairing down positions,  there was some buying and adding to these percentage gains in the likes of KBW and to a lesser extend HDNG.   The only one that got away was CYNO, it looks the Directors got a hold of the hacked version IBD too and decided to sell in bunches this week.   Actually this looks like planned selling again and it has never stopped CYNO before from moving upwards, so we expect this to be a hiccup as well.  You could plug your nose and hold your breath till it goes away or you could just sell when a stock is feeling pressure such as this.  We prefer to sell and not feel the pressure possibly take down a stock of ours.  The stocks above are the primary hit/ hold list for DJIM, we might have reduced exposure in some like BW after a big run but these are also the first we'd be looking to throw money back at in the upcoming trading week.

What probably got us through the week was the continuation of the solar plays. Right now, JASO FSLR TSL are providing more than ample opportunity to swing a trade. The good thing is seemingly there is always one moving, so at this point we are hitching a ride here and there and not asking for names.  VTRU VARI , we are waiting on patiently to make a drive for new highs and jump in with some enthusiasm.  The problem is the techs just don't want to lead this NASD to higher ground. 

So...despite the selling in most sectors for 3 out of the 4 days, the NASD and Russell finshed the week up about 1 %.  The Bull/ Bear fight in full force, except the fighting ain't that strong in either direction.  Hope this week is a little more interesting and some conviction comes back.  In the meantime, DJIM will be stay in its own ring and will be after new earning stocks to punch out some profits with. 

DJIM #13 2007

As we head into another week of trading, we begin to wonder who is doing the 'blowing'.  Well....it was like hurricane gusts to propel this market.  All this despite oil going back to $62 and a few other world issues that didn't dampen the buying during the week.   Someone ' big' wants this market up...might the earnings and guidance coming up be a reflection of this enthusiasm or we just being set up for a hard thrashing at the awaiting tops???.  The timing seems quite interesting as we approach another earnings season.  Should be interesting.  Our strategy remains the same as we take this day to day, attacking opportunities as they come before us.  Last week was a hoot on many trading fronts....we hope we get a third of it this week.

ASTI provided the speculative trading. We tried to walk our strategy on DJIM cause ASTI seemed to have a chance of catching momo.  This momo can be a powerful thing and could also be a dangerous thing.  We've done the same with EFUT, FFHL giving in depth thoughts as it trades along.  What momo brings is also greed as all of a sudden 20% in a few days is just not enough.  We gave our next entry point as to when we were expecting a break and some momo and then a heads up premarket Friday to watch that good ole' Mr. Greed as the stock gapped and gave you an opportunity to pocket the gap winnings.  We said our script was written to that point, this means Mr.Greed was not going to look over our shoulder the rest of the day.  How will it trade this week?. Who knows but this story will have ample opportunities to trade in and out in the future.  We'll be there in size again but for now we'll hold a small position only.

OEH,  provided the long term DJIM thinking coming to fruition with a 3bln price tag attached. If you didn't take a position on this speculation we talked about a few months ago, it shouldn't have stopped you from buying and profiting nicely in the last 3 days of trading.   It still gave a 2-3 pt day Friday after we pointed out in the forum that the price some are expecting could be higher.  We've held quite a bit into weekend hoping to wake up to a buyout on merger Monday. This is a safer type of greed as we look for a few more points.

The big gains last week came from the Oil/Gas equipment/field services etc and DJIM was there with BTJ and its 13+% week.  Here, we also have DXPE which looks to be building up for a move higher.  If you are going deeper into this sec/energy, we threw out OYOG, which IBD says this weekend  is within a buying range.

On the Russian front, GLDN which was already a go here in last weekends Journal went from low 52's to a few cents shy of $57. But the play mentioned Monday night, might be VIP going forward. Why?.  Well...do you remember how this went last Q when we took on MBT and then said we could get a spill into VIP and other Russian telcos. Guess what, MBT put out very good earning and this should be a hint of what to expect from VIP's earning.  VIP closed with a NCH Friday.  Also... one of DJIM early plays, WBD made a nice run late in the week to close at NCH and should be potential playlisted.

As far as Solar, we said last weekend they'd be interesting to watch and as it turned out to trade.  FSLR checked in with a 7-8 points during the week.  It tired some Friday, but maybe that was expected as profit taking sunk in after a big week.  Still...it finished up there on the chart and remains our favorite solar story/stock to trade.

AFAM, NVTL and others are pretty clear over on BT's charts.

CRZ AMAG, we are watching to uncork a few dollars into but we need to see more action to add.

**Remember to visit website and check into DJIM Trader Alerts-Comments to activate email delivery by pressing Subscribe on top of page.  See forum note on this subject as we will be using the link for Alerts- Comments starting Monday.

Go with the flow...

The best thing about us traders is that our trading opinion is purely dictated by the market actions.    Show us what you are made of and then we can act accordingly.    Also fortunately,  that since most of us trade only for our personal account, we don't have to follow a certain trading policy, a rigorous trading doctrine or any guideline that eventually will bound our creativity and potential.   Of course, many mutual funds and hedge funds just don't have that luxury and they have to do what's right and be responsible for their clients.    For us, we just have to do what's best for us.    As we evolve from an amateur trader to a more sophisticated trader, we improve our trading along the way, until we find that working strategy that clicks in with our personality.   And then, we tweak it more and practice and trade more and get more experienced until we find ourselves extremely confident and comfortable with what we trade, how we trade and when we trade.

Hopefully, we try to bring that kind of experience to our readers and eventually help you achieve your goal to become a great trader.

Now onto the  market.    Wow is really the word to describe the action today.    One thing we know coming out of this weekend is that this market will need some sort of a dip to become stronger.    The unknown thing before the start of the day is "how market is going to react to a dip".   Now we know!  Reading the final count is kind of meaningless as most would think it's another boring day.   The intraday action showed that people are willing to buy this dip and buy this dip hard.    Why is this important?    If people think market is gonna visit the recent low again, they wouldn't rush in to buy this first dip so aggressively and early.    It definitely gives great confidence to those that are on the sideline or those that are waiting to put capital into work.   The underlying sentiment is that  it's OK to buy into this market again.   For us, we say game on and it forces us to dip right into the business with some vigor.  The market had more than one reason to be hit and stay down today, incredibly it snapped back.  This shows what we said last night and that there are forces much bigger than all of us at work on this market.

Now some stocks...

DXPE,  it was noted on our forum last week that it had the potential to setup a breakout and we added on Friday.  Last night we reminded DXPE, "looks to be building up for a move higher".  Today we got rewarded and hope you did too!. Party does not seem to be over in this one and it looks like it has more legs behind it.

NVTL, it's inevitable that there's some sort of "sell on news" reaction to its updated guidance today.   The point is that all of us have started playing this one days ago on it's strength and most of us should've been cashing in some or all of the chips.  If you wake to a 18% move on guidance, you should take it.  They didn't exactly find a cure for something to deserve such. We'll keep an eye on it going forward.

CRZ AMAG,  these two closed favourably for us. Even though they may not have the spotlight,  they could be steady "money movers" for us.

JSDA, this one breaks out today and it's definitely acting like it wants to be the other energy drink maker.    We are trading this one according to the action only and have no bias on its fundamentals whatsoever.

OEH, takeover talk..... boring!   Yes it's boring to hear those things these days but the appreciation in the stock in recent days is anything but boring.   Another $1 move and now to $61.60 after being $55 and breaking out as noted in Forum before the takeover talk even started.   We love this one and we are willing to hold onto it for some more development.

AXLA ACAD, finally we have these two to cap off the day.   Take it or leave it, biotechs are hot.   The ones in the news are given such a reward that we can not afford to ignore them.   We've had experience in this schizo market with VNDA, ACAD and so figured this had potential to run as well.  We always give these ones out in the pre-market and hopefully many readers had a chance to get in at a good price on ALXA.  $12.50 to $13 was available at Alert time and for the next 10 minutes or so.  We were probably one of the first to show our love here.  Still, there was plenty in the low $14's to get high $15's out of this news in the short term.  ACAD has held up nicely since its news, we might see the same in ALXA.

Play Ball!

Nice market action to go with it!   Maybe people are excited b/c today's the opening day of the baseball season, but whatever the case, we are definitely enjoying a change of pace from this market.    Yes, this is a short week but there was nothing short on setups today.   We had many setups to consider and we played most of them.   The question remains, is this sort of action going to last a couple of days?    We think the odds is high that we see some continued good action and timing is just about right too going into the earning season.    Lets just get right into some action here...

WBD, hope you didn't get tired of seeing WBD recently here?, today was the payoff with a big move over $83. A 5 point intraday move from low to high of day.

BW, this was a big earnings winner here from low 40's to 49.  It rebounded recently and consolidated near the top.  $50 was probably the breakout point and it broke out convincingly, with volume of course.    We like this one and feel this could be the beginning of a leg up.   At this point, we don't know how high it can go but as long as the momentum is there and trading action looks positive, we'll just ride it along.

JSDA, we noted during the weekend journal that Cramer definitely has an effect on a stock like this one.   We sure got the action from it today and it's now ready to challenge the old high.   We think there's enough enthusiasm and momentum from speculators/traders that this one can go higher.   Market's stability is also providing a catalyst for people to pile some capital into some of these momentum names.

GMRK, although this one is new on our playlist , it's definitely one we've had our eyes on for a while.   We like its consolidating action last little while and earlier today we felt it could b/o.   Action was confirmed and we followed.  Hopefully this one keeps up a good pace next little while.  Remember in quality plays it is not about catching the initial move but just being in it when it continues.  Did it matter if you bought BW the first time at 42 or 44 if it got to $49?. The point is finding the right plays and we think this one could be one.

GROW, it looks like some stocks just won't go away.   We didn't play the most recent rise b/c we weren't sure how the stock is going to act after the split.   Well it setup nicely today and this is something we couldn't just pass on.    Again, this stock is very much a momentum stock and it's pure momentum trading, nothing more.   We just want readers to be aware of this fact and trade accordingly, and with a cool head.

OYOG  OEH  BTJ  HOT NIHD,  just some good old fashioned action/setup with these ones and we added some of each today.

There are probably a few other ones worth mentioning but we felt there's so much out there today that everyone can get a couple of his/her own favourite and call it a day.    Three more days to go till the long weekend and lets keep our fingers crossed for some good action for the next couple of days.  With the Nasdaq barely green end of day, we can definitely say we had DJIM readers in the right stocks today.