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.

Boring day...

We can't fault this market to behave like this today.   After all, the only thing we can do is to respect what the market is capable of and act accordingly.    Basically, there's not much of anything going on out there and we are writing the day off without writing much at all.   Maybe..on account of weather as we actually saw sunshine and felt warmth for the first time  in '07.    Earning season is almost upon us and we have to gather our energy to prepare for possibly another busy one.

ACAD, this is the only one we fiound of tradable quality today mentioned on DJIM.   It broke out and we added some but not too aggressively.   We are also keeping our eyes on ALXA and to see if it can establish a tradable base or not.  A few past DJIM's could be added back on your potential playlist.  MFW ROS

It just seemed too easy..

to shake off the damage incurred in the late Feb.   We were hoping that people would forget about the mini correction sooner rather than later but unfortunately that may not be the case.   Mr. Bernanke, of course, is not helping the situation either.   " Uncertainty" .. Mr. M is creating a lot of that and we somehow just have to get used to his way of business from now on.    The tension in mid-east also is adding salt to the wounds so it's almost a given that we have no where to go but down today.

Both indices touched 50 ema couple of days ago and now turned back down during the last couple of days.   Right now, we are eyeing the top range of that mini correction we had last few weeks as the support of this breakdown.    Although we are not making any kind of bets on that support but we are definitely hoping that support would be held going into the earning season.     This brings to the question of "how is this market going to behave during the coming earning season?"     We have said it many times before, under normal circumstance, market rarely crash before the earning season.   The excuse to sell things usually happen toward the end of the season.    This time, we aren't making any exception unless some major market moving events develop along the way.    

We think it's best for this market not to test the old high anytime soon.   Let this market churn and consolidate for a bit longer.    During an earning season, a good earning report will get rewarded as long as the market is not in a corrective mode.   We are looking for this kind of scenario during the next little while.    A combination of boring market and strong reports would give us obvious and easy targets to trade.   Believe it or not, when the whole market is strong, everything goes up and it's hard to distinguish a good earning play from others.    When the market is simply not doing much and then you have a good earning play, we'd know right away which ones to jump in.     This is also where DJIM background shines out the last few years.

Still a day like today brings out the DJIM methodology of discovering good stocks and coming back to them.  Recycle. DJIM is also about accumulating points and 3 of the stocks below provided such.. MFW +3pts to high, VIP +2 , CYNO 1.5.   These stocks have been big winners here in the past few months and today even on a dreaded day they were able to produce if you followed them with us at alerts.  Considering the state of the market these stocks are not the longer term plays as they were before.  We are prepared to take the points on any sign of weakness and move on the next stock or just sit in more cash.   To those new at DJIM, please read the Alert-Comments description as to what purpose it serves.  We are giving you the stocks we are buying or the stocks we are looking to buy on any sign of further strength ..very soon.  Some like ALXA are no brainers in chasing. 

MFW, this one was noted last night and today it did not disappoint.   Despite the weakness from the overall market, this one held its ground right till the end of the day.   No matter what you say about how strong the stocks in your portfolios were today, this one simply outperformed 99.9% of the stocks out there.

CYNO, we alerted this one in the mid 27 range and it firmed up throughout the day and closed near the day high at $29.   This is also a nch.   Volume is particularly strong today and this is the kind of stock we'd trade aggressively.

VIP, we noted on the weekend we are keeping it close on our playlist. Before 10am and in a bad market, we felt it had a chance and it didn`t disappoint with a move soon enough.  The break wasn`t extreme to new highs, but in this market...we`ll take it.

VYYO, we are definitely a little disappointed on the way it behaved and closed but it's probably understandable b/c of the almost non stop action during the last few days.   Probably should have stuck to past DJIMs and shut up after being up nicely on the first three.  We retained a small position and will watch this one closely on any possible breakout setups.   We'll alert the members if we see such an opportunity arises.

The bottom line, don't be too pessimistic about what's going on in the market out there.   The key is to trade what's working and especially pay attention to those DJIM type of stocks that are green.   Be disciplined when it comes to cutting losses and protecting profits.    Given the uncertainty of this market,  we literally have to act like `traders`, not pretend and not fall in love with our holds.    Until the market gets a better trading environment, we just have to poke them one at a time for now.    Hopefully, we'd get some big earning reports going into this earning season and create some stability for this market so we can do our wonders at DJIM.

cheers, 

Blender action...

Toss it all in.. crush it all up and see what comes out end of the day.  There is so much going on and it's making this market turn on a dime.  Political, Eco numbers today, 5% gain in Oil in two days, Bernanke roast yesterday..etc.  As traders, what we want is a strong close to the day, what happens at the open, mid day is usually forgotten by the end of day.  Simply, it's the close that matters and today we got a nice reversal end of day.  Is it mostly end of Quarter window dressing?.  Could be, just toss it in the blender too and see if it continues into what is usually profit taking Friday, except after this week there is not much to pull off in the way of profits, but we don't know how many want to wake up to news of an air raid in the Persian Gulf on their way to church on Sunday.   You could go nuts digesting every move and trade accordingly to every headline or you can just decide to let the big banker boys hammer it out between themselves and go on with trading the retail way. We prefer to live a simple 'trade' and just continue to be selective in stock picking and following our methodology, which included what and how we would handle the stocks from yesterday.  Hey, if we can't follow our own techniques, how could we expect you to?. The open today provided an excellent opportunity to take some profits on yesterdays trades and not necessarily wait for any weakening in the market or the stock itself before exiting...

CYNO, popping to 30.50 by 10:30am and then following the market is a prime example of what we discussed last night. Take your points in this type of market. There was a potential of up to 3pts since yesterdays note on it. Not a bad days work for a stock in the $20's.

VIP, same idea here as the stock ran past $99 early. Again not bad from a possible $96 entry yesterday. We are not carrying many positions since the market turmoil and it is easy to swing these moves into a quick profit of a few points. We don't want more than a few here and there until we can step it up in the coming weeks of fresh earning meat.

MFW, same story except this one we ended up buying back and is the only one of these 3 that we kept overnight. We're not shy about selling out and then coming back for a second date. It's not a mistake to sell a gap up or selling when the markets starts to blow south. Its just capital preservation.

ACAD, is the other we are holding overnight. It held on to its gains today as the market headed lower. It never twitched and then got some volume and what turned out to be a nice close.

GRZ, we really don't want to Journal speculative trades like this, but it's acting right and if wasn't Gold or Canadian;) , we'd probably really like it and talk about how well it's trading.  Again...just funny money or something on the side you can say.

Speaking of something on the side....we will probably be hypnotized by the DNDN action tomorrow on level 2 as with LEND recently. So, we'll most likely take a position with some funny money as in a $2 ticket at the races.  Its all about being at the show, like the Kentucky Derby and not about winning.  This is the fun of trading, you could really make some money but you must be prepared for every other possibility. This won't be a one day trade, so once in it's probably better to stick through the jumpy action.

Subscriptions

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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.

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.

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

..Hmmmm

Not sure what we have left for tomorrow.  Maybe another high flying micro cap biotech will emerge and we can play some of the extra dollars earned this week for fun.  Everything, we could have imagined has already happened and we're extremely pleased with the results before earning season has even kicked off!.  Simply, we didn't lay any eggs and had everyone in the right spots at the right time.   What we think we provide at DJIM is plenty of action without the need of our readers to go look for potential plays.  Instead, we give out we think should be sufficient to play, to trade and make a dollar or two on.  We share the toys in our sandbox and don't think you really need to stray from what we dig up.  Of course, this is a big stock universe and our plays are not the only thing going on, but for those not full-time in this gig we think we provide all you need..this includes stocks on the forum from other traders.    Hey, why not trade what ones in this 24/7 trade?.  That's a huge advantage to be in the loop, the in crowd... but it comes with quite a bit of responsibility.  The biggest is understanding you're playing with a lot of 24/7 momentum money and it does not care if you made 10% in the morning cause it will turn on you while you go for your liquid lunch.  Your responsibility is to protect your winnings.  There is one calculation a member did and that is DJIMstocks rarely slide to the red in the beginning stage.  What this means is there is a great chance you will make money if your timing is right and procrastination does not take you over.   If you haven't noticed we MOVE ON and go after the next play after nice moves or if something simply lags.    Please understand... this is what we preach, we believe and have shown we can get on and find the next egg to crack.   As far as we are concerned,  we are in this together with you and so why be here if you don't follow our methodology.   We just don't understand why some get such crushes on stocks that they try to live in the hope of a bounce cause their pretty stock was pretty once.  MOVE ON.  Also, don't ever ask us if we're still holding a GROW back down to $30 after seeing it climb to $35, don't ask if we are still holding JSDA a week from now, if it is 3 bucks lower.  Honestly, this is not extreme!.  Some just love getting in on a GROW at $32 and then wondering what our opinion is if it falls to $30.  If you are buying a stock a bit late and had made a $1 or $2, don't led it slide beneath your buy point.  This is part of we noted last night when you keep adding to a position or starting all over. Don't let your original gains slide away.

The Alerts- Comments page is a 'LEAD', again not a license to buy. Every stock is different and the less seasoned need to understand the differences between the types of stocks we trade.  Sometimes, we hit the clock unintentionally as in the case of SMCI.  We didn't want it to move a $1 after our note, we had hoped this would take time.   We just don't want people chasing after they see a reaction to a trade and assume if they chase the next one that it could happen again and you make 10% in a hour.   KIDS, it just don't work that way!.  Accept it.  Actually if we wanted that, us and our friends could do that.   But, creating a move and dumping on our readers is not what we are about.  This is part of the reason we started this as we have seen this in the circles we have found ourselves in.  It's unfortunate, but its out there!.  Think about this ...if we wanted to make money this way, we could have kept our site public with readership at 10X what it is now with Yahoo's scalping on each other.

We are making an effort to be more educational as we continue forward and so tonights Journal and the recent follow ups in the Forum.  The stocks speak for themselves this week and we will leave them to this weekend...GROW JSDA DNDN momo, WBD OYOG BW NIHD TSL AMAG HOT  breakout moves. A great week proving that readers calculation. 

Have a great holiday!

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.

Bold trading...

Folks, this is the kind of market that rewards bold, aggressive trading.    Yes, it's how ironic that as little as a couple of weeks ago, we'd be hard to imagine carrying more than a few positions overnight.    These days, you just have so many choices to add at the end of day.    Good times are here it feels like.     This is the kind of trading environment, the kind of participation and the kind of opportunistic crowd we'd been looking for.    We have been very aggressive into this market last couple of days and more so today, largely due to the good actions we are seeing from the market and continued flow of new plays.     There's really not much else you can say to describe this market.   For those of us who have the luxury of playing every single play out there, don't take this for granted.   Market movements like this only come a few times a year and we simply have to fully take advantage of this sort of action.     Regardless the kind of plays you are in, whether it's  DNDN, TSL, MTRX or GROW, the common feeling out there is that mood is good and plenty of money is chasing some hot names and we as traders, HAVE to deliver on our end.

Basically, it all sounds pretty simple when it comes to making a living as a full time trader.   We try to make a killing when market is good and stay low key when the market is poor.    This time around, there's no exception that we have to way outperform an average investor/trader.     How do you stay ahead of the game in a good market?   If you have limited capital to trade, the key is to stay in the hottest names and cut the laggards the minute. the momentum slows down.    The reason for that is that since there's always a steady supply of good setups/new plays coming into the market on a daily basis, there's no reason to be hanging onto a laggard.   This kind of tactics can be very stressful but nobody said being good in this game is a walk in the park.    If you have somewhat of a big portfolio and more capital to trade like us, we'd simply play everything/anything that resembles a good setup.   The key in this case is get a starter position in an play and add aggressively to those that have the higher momentum.   Again, we cut laggards as often as we add new names to portfolio so the laggards do not drag down the overall performance after a while.  

..here is some new action we are involved in today and some initiated last week...

TSL, in our opinion this is the only solar play that mattered today.   Other solar plays may tried to give it a go but this is the only one that really shined.    Remember last week there was a block for sale at $49.80 and stock backed down after it was revealed?   Many of us are definitely eyeing it as the resistance/catalyst for a breakout.   Once it was taken down, the rest is just history and we just had to follow through.   It's looking great. Last week this was alert in the 46's, then add in 48's and today another alert around $50. BOOM..BOOM..BOOOM to 54's and almost 20% in a few days.  Recently in the forum we said liked TSL better at that time because of the set up.  There's no rule in this trading camp to how long we keep the 'one', the fave.  Simply, if we like how you behave, we reward you with capital.

MTRX, we added a little of this one and we are actually pleasantly surprised by its follow through action today.   When it came out with earning last quarter, its follow through action is nowhere near its action today.    Again, action always speak louder than words and we just have to respect it when it comes to trading.

CIMT, this little one seemed to sat back in the classroom today cuz other kids have stolen the highlights.   With us, we gave it extra attention by adding to our existing position.   The key for this one is its 2.69 mill float. To highs this alert is over 20%, we like to think there is more to come.

USAP, nobody expected this one to gap over the weekend. We expected a new high in hours, just not in minutes, but nobody expected SCHN to come out with a rosy guidance either.    NCH and potentially with other co. reporting good earning, this sector may be in vogue again as said last night.  Right time, right place.

VIP, simply the idea repeated in last nights Journal has started to pay off as it traded to over $100.

USAT, if it was 3 weeks ago, this one might just close poorly and we'd stayed away from it.   This says alot about the kind of trading environment we are in.    This stock flat lined most of the day after the initial surge and last 10 min. showed why we have to go BOLD in this market.    Speculative money is pouring into this market in force and we have to take advantage of it. The idea was to go after USAT, if the flat line didn't break down. It didn't and popped another $1 after alert in the last 3 minutes.

ISH, this is similar to USAT but with a better chart, minus the news.   Why do we play these?  Well, it'd be stupid not to.   Probability is high that this one goes higher given today's volume/price action.

URZ, not to confuse with the gold play GRZ, this is the uranium play which we are putting on our watch list and got a starter position with.    Chart is looking good and we are adding some flavour to the mix.

Others behaved well include NIHD OYOG WBD BW...

Back and forth..

One big day is being followed by a so so day.  Simply, there was no catalyst today for the market.   We'll take that as we wait for earning season to get into gear.  By now, we are hoping everyone has gotten used to the idea of selling some positions early in the day to lock in the profit and look for opportunities late in the day for a flip next morning/ day.  This is no time to watch 3 and 4 pt drops and watch your profits disappear in plays like TSL USAP when you should be building a earnings nest of cash to have on hand.   Come back to these plays.   Call it a trading system if you wish and it has worked well during the last while.  When earnings start flowing this is when we will get back to the more usual type of trade. We have officially kicked off earning season tonight with AA reporting and it looks a little ho-hum to fuel a 9th straight day of highs for DJIA.  The market will be focused on earning reports next few weeks and so shall we.    Some standout action today...

FSLR,  solar stocks taking turns leading the sector and today's FSLR's turn.   It finished up over $60 and did not give up most of its gain today.   Again, we have to point out that a big point gainer in these solar stocks may not guarantee a nice follow through the next day.    We are going to be watcing the first 20 min. of trading closely tomorrow to see which way it'll lean before we decide to lean into it.

ASTI, this is a stock which we had skepticism earlier in the day but stock proved its worthiness toward the end.   Again, we just don't want to draw the conclusion too early on a "potential" setup untill the setup actually materializes.      What's the difference adding at $9.40 early in the morning compare to adding at $9.60 near the close?   In the first case, you are running into a possible scenario that stock fakes a b/o and may head back down.   In the second case, you ensure that the stock closes near the high and prints a nice candle on the chart which gives a much better probability of a potential follow through tomorrow.   The end difference is about few hours in waiting and 20 cents in price.    To us, we'd pay for better probability and this is what we meant by buying at higher price if the action can firmly confirm the setup.

SLP, this one had EPS released earlier today and stock just strengthened throughout the day.   We are playing this one b/c of the reaction to its earning and its recent trading history of being one to play.    This one can get some serious momentum and today's price/volume shows the kind of potential it can get.    Go with the action.   Trade what you see from the action, not from the press release.  Again, this one can get volatile so we are treating this one as a speculative play only. We mentioned this one in the forum as something we're looking at 15.60ish, a quick trade ensued for some to 16.48high.

GMRK /MFW, we added some back on both of these moves and will be looking for further strength next few days.

NIHD, another NCH at 79.37.

GRZ URZ, guess we are spreading our wings a bit, maybe it is the ease to get 15%-20% on these cheapie plays quite quickly. GRZ was intro'd mid 6's, so it was a quick $1+ ride to 7.60 today.   URZ, we intro'd last night and just want to follow up as it was up a quick 6% today before giving it up.  So did we..lol.  Still.. Uranium is hot, it rose to the highest levels since '86 and was up over $2+ a pound last week after having a big '06 when it was rising .70c a week.  Nuke fuel is in demand and if we can catch a cheapie for a ride here and there, we'll try again!.  There is a bullish macro future here, so why not.   Again..these plays are speculative in our DJIM books and not where we are concentrating on making money.

..Jar of peanut butter

Last night we noted AA numbers, although the best in co's Q1 history, it will likely be a ho-hum to the market.  We didn't anticipate a 9th straight of new highs for the DJIA and that simply relates to our make up going into the day.  Basically, it is a stance of caution and a willingness to sell as we see nothing ahead for the day.  This is expanded by the uncertainty of the Minutes at 2pm and what it can do to the market.  This is simply a cloud over the market and this doesn't exacttly make us buy happy, but rather sell happy and that's what we mostly did this morning.  Nothing was revealed that gave us cause to step back in the afternoon.  Still...we stuck around in anticipation of RIMM's numbers to step into an old DJIM name, the funds were ready and we got ready for the first true EPS play of the season...licked our fingers and were ready to dip in the RIMM peanut butter jar.  You see when it comes to stocks in the 70's to over $100, we joke about how many fingers you gonna dip?..a finger is a 100 lot.  We're not exactly gonna dip 2 hands full at 140 bucks a lot.  Well...we were quite disappointed RIMM's guidance couldn't give itself a jolt or maybe the techs going forward.....But then we got a pleasant surprise it seems with another peanut butter stock....AMAG

AMAG, this was a pick up in late March....Well we played it from just under 60, got the breakout recently and left on the 3rd of April as today's results were to be released that afternoon AH.  We said we'd get over a gap open in the morning if the results were favourable, but today we got a gift at 4:30 as the results from two trials were released and we had it to you in a few minutes.  We found our Jar and dipped into this around 70. We love the float of this stock near 10 million and a big short interest.  This one is also loved by the analysts and we expect to see some kind words tomorrow morning.   Now that it is trading at 74, we are to believe this will be kind and we could get more follow through.  The beauty of the market is AMAG gave us what we were looking from RIMM....the best part is it might give us more by late morning than RIMM could ever have..easily.

late March, ..."we used to trade this back in early 06' with great success under a different symbol, it's a streaky stock and if you get on the right side..at the right time this one can be quite the winner. It's in late-stage development for iron deficiency related anemia in chronic kidney disease and that is the speculation part.  We started very small and will see if the small float and big short interest can dance with the Deutsche Bank $100 target put on it today".

UXG, was a premarket buy in the 5.60's and quickly climbed to over $6 at the open and a a quick 6-7% for the flippers here.  Well, we actually did some of that and as we said we will look to buy the dips, which we did later again.  Having some gold rather than the Nasdaq stuff seemed like a better idea later in the day.  We are traders and if we get 6-7% in the first 10minutes, we will take it.  It finds itself there over $6 in AH's today and we think it goes higher.  We will continue to trade these cheapies GRX, URX and now UXG.

ASTI, we explained the play last night after alerting to it late in the day. Well buying and saving 20c on a early entry didn't matter much did it?. This baby got love premarket and it extended to an early 10.80 high. Yeah, we sold up there in the 10's..we said last night what we are doing these days.   If you didn't catch BT's email of its potential early in the day or don't get in on our late day buys...don't worry there will be more opp's like we said before in this name.   Right now, we are exhausted by the TSL's, FSLR's after the nice moves here and now ASTI.  We're taking a breather now on them even though this was one of the few sec's up today.   We're holding some FSLR end of day only.

USAT, we noted this one surprised us so far and that we could get something to look forward to.  It came pretty quickly and a shot up to 12.50. Not bad for a 10.60ish alert end of day a few days ago.  At this point we are trading it, it has potential to trade beautifully if more momo money discovered it.  Right now it feels like its on the fringes as nobody knows what to make of it.  It's not exactly earning related and momo traders aren't about to go deep into DD on this or any stock.  We added and then sold some.   If you were watching  you probably pulled off a nice intraday trade after our note.   Again..we are trading it and hope more come to it.   If you wanted to hold it for a few days, you had your chances to buy around $11 and to sell today and make a quick 10%+. 

SLP, it had a fine afternoon and from previous history, we'd be patient and drive into it more when it moves.

Everything else was ho- hum and anything lagging was being cut off for the time being.

Still a victory...

Even though the score is not showing up on our watchlist, you just couldn't help feeling that the positive vibe from the overall market will eventually spill over to your stocks, at some point.    So maybe not today!   There's still tomorrow and whole earning season ahead of us.   The strength among the DJIM stock is fairly narrow today with a few outstanding ones.   Lets get to them now...

JSDA, IBD writeup + 1234 set, 9ema + NCH....  oh my this just sounds so corny. lol    Well, many of the stocks we come to known in the past often felt that way too.    With corniness comes famaliarity, and that's a good thing to us traders.    We liked this setup alot and added throughout the day, and closing is nothing short of spectacular.    Let's just keep our fingers crossed for some good action tomorrow and beyond.  THE AH action has continued to over 26.

TNH, we told you this a volatile one. Today it was almost 6% volatile ' UP' and a NCH off the 9ema it has held the previous days.  As a trader you have to love stocks that give you 4-5pts in a day and that is why we have this one up on our play list.

SILC, this one caught our attention late as it bounced off 9 ema earlier and raced toward a new high.   We added a little toward the end and are looking for follow through tomorrow. As long as SILC keeps getting design wins this one will keep getting some attention.

AMAG, action was not overwhelming premarket and we started to see some sell on the news.  We bought some back near the close as it held 70 today quite well.  Jefferies came out with a $99 to go with DeutBanks $100 price target.  We'll see what tomorrow brings before taking more action.  Considering there was only a $2.95 spread on 1.8mln shares for a small float stock...this could coil up for a nice pop.