Tanned....

and not the crispy burned type......Damn....it was hot in here!.  It doesn't take more than a 60 watt bulb to tan these Toronto boyz but nothing gets them hotter than a few of their Solar plays movin' and grovin'.   Rumor has it the market took the day off as many had expected following yesterdays blow out afternoon.   Well,  we didn't notice as this was one those 'oblivious' to the market indices days as our closely followed had a helluva day.  DJIM's gig is to get you following what we trade,  the tedious research can wait till we throw out a new stock to consider ...we'll find what you can trade over and over again and as noted last night some you can store away as well.    Recently, we said it might be wise to put some shares of solar plays away in a shoe box and not worry about trading them in and out as this story is not leaving us for a while....Today..was a perfect example of the potential in these names.  Solar stuff is nothing new as we've traded the WFR SPWR'sin 06, but we like the FSLR, ASTI, TSL to concentrate on in 07'!.   For the average investor or trader to be,  there is no extra plays you need.   We're full time and it's plenty for us.   Until a secondary play catches the same fever as our current plays..we won't go there!.  We welcome the next FSLR...when it comes!...

ASTI...wow are members are the greedy bunch...lol.  We 're not going to push it to $10, we were just below $8 yesterday.  We said when to expect 'us' to come in the last few days.  The script was written and we kept in touch all the way through.  Still...more than one opportunity existed today!.  We've talked about the day if ASTI catches the solar fever and gets bunched in with our other names.  We wanted that!.   If you begin to think like us, the early action in TSL and FSLR should have made you think it might spill to ASTI or at least hope for such and therefore been watching closely.   If you consider our mentions of a potential powerful  'flag' move that ASTI was creating yesterday.  Whats a flag?.  In laymen terms, it's a pennant of sorts in some circles....one look at the chart and the tight range (spread hi-low) yesterday was a move in the making and today there was a catalyst to use to solar it up...the TSL and FSLR to set the bugger off.    So there was two trades in ASTI today.  One was the piggyback ride of the solars to the first leg to the $8.70-80's and the second which we spoke of the last few days.    We had numerous emails, "is the love" and we responded on the forum that you will feel and see it.  The volume was a measly 700k at this point.  The love did come and ASTI added 2 million more shares to the volume end of day and a high of $9.70 was hit on the move we were looking for.   Maybe after 17% on the day gain, we should not concern ourselves about the close.  Sure, we would have liked the highs to be taken out end of day, but 17% is plenty and enough to spread the ASTI name around for a little while....30 cents off the top is nada!.  Maybe we should also accept this is not a Baskin Robbins stock, as in flavor of the day, small float momo stock to run EFUT, FFHL style and accept this is a longer term investment like Norsk (NHY) thinks it is by picking up all those shares.

FSLR, what can we say? ...our fave ain't going to the doghouse after a NCH.  TSL, a top 3 solar here..still has some catching up to do but definitely played its part today.   When we started DJIM, we talked about catching points and watching them add up....parts of 3 points on these two and the ASTI play and you should have a nice glow about you tonight!.

OEH, this has turned quietly into a pride and joy type here.  It is these stock picks that we really like to hit on the head.  Also VTRU,  a earnings and takeover play for DJIM this Q was taken out today for $48 or so.   Well, we already saw higher than todays trade in VTRU after we started covering it,  so today just nailed the trade idea for DJIM.    OEH was here first as a trade that busted out in the 40's after an alert and later it turned into a takeover play.  See Alerts in preview section.   This was confirmed a few weeks ago by Briefingcom and today it hit the press big time.  We got a little lucky buying it again yesterday........well, maybe.......when you look for strength, you sometimes get rewarded and we did today.    We buy NCH's and OEH was flying yesterday as noted in the morning forum before the market even had a chance to suck up the Bernanke.   Looks we don't need to stay at a HMIN at $16 bucks a night now!..lol.  We've kept some and traded this 6% move today and think our OEH can fetch some more room service.  Our mini bar needs re-stocking after todays DJIM stock ride.

KBW, the financials were running hard yesterday afternoon after the FED talk and if you didn't want to dish out about $200 bucks for some GS, we gave the forum an alternative DJIM play at $35.  GS exhausted today, KBW ...which was available for under $35 yesterday... closed at the days high at $37.08.  No easier play for a few shares out there.   We had a laggard as in one not many still associate with a financial play and it proved to be a good bet for a few points.

Where do we stop?;)

BTJ, our oil play..up 2 bucks-6% to a NCH.

CYNO hit 27.66 and still made a NCH,  NVTL almost to mid 15's and looks to solidify the $15's,  HDNG another NCH.  Some others had little spikes like SIMO and GLDN before giving it up, but they've had a few real nice days to follow up on.   Only real loss was a measly $1.20 in HURC. The few that were red, closed less than 1% off.   You can't argue with what our closely followed did today in a boring market day.   Last night, we said you might want to take some profits as this market digests yesterdays afternoon roll.   If you didn't today with this golden opportunity while the market lagged DJIM stocks....consider some tomorrow if profit taking Friday comes.   Still,  this weekend should provide some merger activity that has been shelved before the FED action yesterday.

We dabbled in some CRZ and to a lesser degree OYOG.  CRZ, asset management co' is one we watched before and it reported last night, Crystal River Captial reports Q4 EPS of $0.57 vs $0.07 yr ago; revs rise 69% to $59.1 mln . We like the way it traded and will look at a break over $28 to add.  OYOG is coming to high today and is involved in the oil and gas biz.  It's float is all of 4mln shares and when it comes at a price of $60-70 bucks, you can expect some big spreads.  We'll see if it continues to new highs before adding to a very small piece we hold now.

No time to blink...

Despite the fact this kind of market action smells like holiday trading, it is still the kind of profitable trading environment that we absolutely cannot ignore.   So what if this sort of action only lasts till the end of this week?   Given what we've gone through the last month and half, it's about time we take some from the market.     It's true that this sort of action does not change the overall picture, but do we really care at this point?    We can spend endless hours debating what the overall picture may look like but it's more practical to get down to the nitty gritty of things and take advantage of what's given to us and make the best out of it.     In all honesty, someone can probably make enough returns last couple of days and next couple of days to call it a year.     The point is that we simply have to treasure what's happening out there and really take advantage of the situation.     When market is in a good mood, we'd always forget how tough the market is during the rough times.     The bottom line, we can't take this rally for granted and we really have to do good on our part.    Lets get right down to business...

GROW +11.8% JSDA +6.7%, it's important to note that selling is just as important as buying when it comes to trading these type of momentum stocks.    We are not here to debate the future prospect of each company and we are simply trying to give our play-book here on how we make the most of these plays here.    A rosy market coupled with a good close with those momentum names usually give a high probability that they'd act good the next day.    One unknown that we always have to deal with is if the stock goes up next day, "how high will it go and when do we sell?"   If you treat stock trading as much as a game as we do here, the decision is much easier.     To us, it's not about how much profit we should take, it's all about what we should be doing as a right move or wrong move, much like a game of chess.    We sold quite a bit earlier and the price is no where near the day high.   Why?   We wanted to close out yesterday's play that was intended for this mornings pop.   We get it and we closed it.   It's something we've been doing for a long while and it's more of an automatic habit and it's always been in our playbook.   If these stock withstood the early selling, and market keeps on rolling with no sign of weakness, then we buy a little bit back, usually at a higher price than we sold at.     Well, this is how we trade and every little bit of surge we'd just add a bit more.     Closing would provide an important clue as to where these stocks may go tomorrow and today's no exception.     We are holding some overnight and we'll repeat the same process for tomorrow with a smaller amount.  One thing... after getting a 5%+ open is when/if you decide to buy again as we did today, do not let that first 5% slip away. Simply..don't let your additional buys during the day slip into the red. Just call it a day and leave with the original 5%+ gain.  We noted early yesterday we'd be looking at GROW later and noted our add.  This open action is what we were planning for and it happened to script.

HOT ,+3% where OEH is taking a rest from the endless downgrades, HOT is taking over as the new takeover target in town.   Guess what?  They are in the same biz too.    This just tells us that this sector is hot and we can't afford to write off OEH either as it behaved really well in spite of a downgrade from a major firm.

CYNO, we think stock is ready to challenge high and given the shortened week and "light" volume trading according to other gurus, anything goes.

SMCI, do we like the close? No!  Is this the end of the world? No!  Did you all get weak hands and sell?..lol.   Hey, we're not here to judge anyones style.  We can't blame anyone taking up to a dollar profit on our lead.  We are adding this one to our daily watchlist and as well onto our long positions.   Other than the fact this one is a relatively new stock with good growth, we feel it has potential.   One thing is we don't load up as others with subscriptions for days and then let their readers get the remains before they unload their batch on you.  You are never far off our entries, especially in time and many times will get a better price if you are a little patient. Still depending on your experience some DD is essential before entering into a position.

CIMT, finally, we threw in this little speculative cheapie into the mix at 3.80's.   Sometimes plays take some time to materalize, this could be one of them.  They reported a profitable quarter recently and news they are expanding office in China got some traders excited, including us.    Who knows, given its float just under 3mln, the special holiday trading week, the China effect, this one may turn out to be the best holder for us. AH 4.23.

This is the Briefing write up in mid-march. We're guessing they will follow up very sooooon on this if CIMT continues up..."CIMT is trading up 122% following the co's early morning earnings report that showed CIMT's first full year of profitability after several years of losses. Specifically, CIMT reported Q4 EPS of $0.07 vs -$0.22 in 4Q05 and revs that rose 11% YoY to $6.0 mln (no estimates). FY06 EPS was $0.07 vs -$0.59 in 2005... CIMT is a small Israel-based co that provides design software tools for manufacturing, toolmaking and N.C. Programming. The co's CAD/CAM (computer-aided design/computer-aided manufacturing) products are used by mold, tool and die makers as well as manufacturers of discrete parts... The co said its business and financial results reflect the turnaround of the last two years, in which it focused on new product development and reorganization of its global sales and marketing force. In addition to being a developing earnings story, CIMT could be viewed as a China play, as the co said its Chinese subsidiary achieved 80% revenue growth in 2006. CIMT also noted that the Chinese market is its fastest growing target market, and they continue to invest and expand operations there... Although the stock is seeing decent volume of 267K shares on today's move, CIMT is normally pretty illiquid, with average daily volume of only 2.8K shares. Also adding to the momentum is the stock's small float of only 2.7 mln shares... Mkt cap: $20.5 mln"

Some other DJIM stocks did extremely well and/or closed well include...

NIHD hit 78.50's  WBD hit 86  AMAG up 3.3%  BW hit 52.70's  OYOG.hit 78. CSV nch

Last night we said we thought we had you in the right stocks , today was the pudding

DJIM #15 2007

A premise here has been our belief that the markets will be solid going into another earning season, a market has little chance of crashing through the floor before the companies get a chance to tell their side of the story. The correction has been literally wiped away and the recent retracement to the 100ma averages has seen a healthy bounce as we enter Q2.  Last week was one for the books as a number of plays here enjoyed breakaway gains..WBD, JSDA, GROW, MFW.  Isn't interesting that these are all earning plays at one time or another on DJIM. We also had nice moves from AMAG,OYOG.  Plus the solars TSL,ASTI, FSLR..we talked about last weekend as a possibility for the week made for some nice trades.  Sometimes the strong get stronger and it is more apparent in a bullish trend such as we enjoyed last week.  Simply, this was a case of recycling which is a big part of our trading methodology. Speaking of recycling, a few names popped back into our books here on Thursday and they include DJIM stocks from January in MTRX and USAP, both previous earning gem winners.

We'll concentrate on Thursday additions...

MTRX, announce an excellent Q with an upside to guidance. Last Q this was pick up at 16+ and was as steady as they come. Not a big flyer it survived every pit the market would throw at it, including a sliding Oil price and it still held ground. We expected MTRX to trade as the previous earning day, but it performed much better than expected as the institutions did not churn it as before. The guidance was the key this time around as it put on gains throughout the day finishing strong.

...beats by $0.07, issues upside guidance (21.41 ) : Reports Q3 (Feb) earnings of $0.24 per share, $0.07 better than the Reuters Estimates consensus of $0.17; revenues rose 41.1% year/year to $168.7 mln vs the $136.5 mln consensus. Co issues upside guidance for FY07, sees FY07 revs of $630-640 mln, up from previous guidance of $560-580 mln, vs. $588.92 mln consensus.  CEO says, "Our third quarter performance significantly exceeded our expectations as we were able to add to our strong talent pools in the construction services groups allowing us to capture and execute more projects, particularly in the Downstream Petroleum Industry."

USAP, a darling from last Q with first buy in at 36+. This maker of speciality steel products including Aerospace and power industries is in the right space at the right time.  We think it is just a matter of hours before we see USAP take on the February highs of 51.80 and go forward and so we added it back. FWIW...Cramer was bullish on his lighting bolt seg March 7th as well.

SPEC, this one gapped off earning March 30th, ( Q1 EPS of $0.16 vs $0.02 in yr ago period; revs $32.9 mln vs $25.6 mln in yr ago period ). Sequentially, this was in line with Q4EPS and with 99 94 IBD numbers it is seeking $15 from the IBD crowd.

Speaking of IBD... How about SYNL and EML, #13 and #85 this weekend for these two DJIM finds from 2006 and last Q. Guess they added their volume together to stick them finally on IBD100.  A note about EML, Friday there was a note on Dept of Defense new armoured vehicle program. Big contracts will come in 07 as this program expands and AH(Armor Holding) gets EML do quite a bit of the work. 

TNH, Terra Nitrogen (nitrogen fertilizer products). 93c Q announced in February. It has been a great trade for sometime due to its volatility. It is one to be traded with care. We added on the dip Thursday and it recovered and flirted with new day highs by close. Made a NCH on a very good volume day(top 5 this year). Guess this is a Ag play as it grows what we eat,  but it is tied to the price of natural gas, it is more than 60% of its expenses. So know what's going on in that end.

As great as the recycling program can be, it does not stop us from looking forward and having cash available to go strong after a new batch of earning plays. We have a growing play list after last week, but we think the bigger money can be made in new picks coming up and so enter this Q with plenty of cash on hand.  Also, if we were holding any laggards at this point, we would simply dump here and avoid waiting for a sunny day with anything stalled and just free up more cash to use on new plays.

If you need reminding, here is a list of some of the stocks we traded here last Q off earning... USAP CCF VTRU VARI MTRX SYNL EML HDNG CYNO TRT HURC TRCR TGX NWK AVZA CSV.   Get it?  Opportunities will be there!

It starts with RIMM and VIP this week as far as past DJIM earning plays.  If you missed it, we've talked about VIP being a play before earning on the heels of MBT report  here on the Journal. So watch it closely this week for a pre-earning reaction. A few notable Russian funds were up over 3% last week, maybe it wasn't all WBD holdings;), but a sign of things to come for DJIM Russian names.

Also, the earning dates link waits for your participation on earning dates for DJIM plays when found.