Trading the untrustable...
Thursday, August 2, 2007 at 08:33PM While we all like to really just forget about this subprime and credit crunch woes that took our market down last week, we simply just can't shake it off that easily. Things are looking very tricky at the moment. On one hand, many of us are just waiting what sort of damage that would come out of this. On the other hand, market isn't giving us a clear clue what it intends to do once the smoke is cleared. One thing is for sure, there will be some casualities from the credit fallout and life will move on afterwards. We as traders just have to adapt our game plan to whatever the scenario that lies ahead of us. Right now, things are uncertain! And when things are as uncertain as it is now, we'd look for plays that stand out from the crowd. Although no play is totally market independent, but there are some plays out there that are less market dependent, compare to others.
CRNT, this one has been in our playbook since last week and oh yeah, in case you are wondering, it's another one of those IBD100 play. We like its close today. As long as the market does not pull a diving action tomorrow, we think this one has a very high probability of closing above $15 tomorrow. There's just that feeling that market participants wanted to see this one closing above $15.
ARTC, if we have to pick a stock to play, we'd have to choose from the list of recent earnings winners. This one came back strong today and it looks as though it will take out the old high convincingly.
LULU/CROX, we are pairing this two up for a trade and they are the plays which we think are less dependent to the market.