Stock Picks and Trade Ideas for Wednesday

New Buy Candidates: ARBA, AUTH (rebuy), AAWW, BPSG, CAS, CGNX, CLS, IPAR, TLVT, V, ZEUS

New Short Sale Candidates: AG, CMP, HLF, MON

Add To: AIXG, AREX, GENC, GLOB.OB, GNET, GTE, HA, HUSA, IDRA, OME, TACT, XTLB,

Watching: MA, MXC, PDO



Note: Today's only buys were TACT, XTLB XTLB was a rebuy. TACT was an add-on to a preexisting position.

Stock Picks and Trade Ideas for Tuesday

New Buy Candidates: AXR, TACT (previously mentioned, XTLB (rebuy)



New Short Sale Candidates:


Add To: SNT, TACT (if you already bought)




I will post the new trade ideas later on today.

On the Move: DGLY, SNT, VSCI

All three of these stocks were previously mentioned buy candidates. While most stocks are lagging behind and suffering, DGLY, SNT and VSCI are making progress on their charts.

A Game of Guess the Markets Future Direction

This is exactly how I feel. I feel as if I'm always scratching my head trying to figure out if we'll be heading up or down in the near term. At the moment, volatility is low and investors have calmed their nerves. And with the DJIA and the other indices reclaiming their 50 day MA's, why should they? But still, there is plenty of resistance to go through. I've said it a few weeks ago: Even if we climb back above the 200 day MA, I do not believe that we will stay afloat long enough to build a base. This isn't the first time this has happened. Feel free to check some historical chart action to see what I am talking about. Even in a downtrend, the indices cannot just go straight down. They trade sideways and even rally at times. But they always seem to hit an invisible barrier or resistance. If you look at the down trend of 2000-02, you will notice several instances where the indices climbed back above their 200 day MA, only to fall below that line several days/weeks later. This is all part of the markets movement. It is a good idea to study the past charts. Nothing really changes. The same raw human emotions that governed the market since its inception still control it to this day. Nothing changes except the players and the name of the stocks. Although I am mostly painting a pessimistic picture, one needs to look at the situation in the right context. Sure, it is a lot harder to make a decent return on the long side, but even in a down trend, when the market bounces, there are always a small handful of longs to take advanatage of. This is always true. Not all stocks go up or down in either market trend. In fact, it is probably easier to find good stocks to go long in down turns since they are easier to spot. These are just a few things to keep in mind while you navigate this market.

Charts of Interest...

Here are several stock chart setups that I like right now...


HDSN






















QTWW

Although it is not quite ready to be a high quality long, QTWW is starting to shape up nicely. It still needs a little more time to work on its base.








































SNT

Stock Picks and Trade Ideas for Monday

New Buy Candidates: BVX, LRT, MPET

New Short Sale Candidates:

Add To: AREX, DGLY, HDSN, LRT, MPET, SNT, VSCI

Sell: GU (I've already been stopped out for a loss. If you haven't sold, look to sell if the stock doesn't bounce off its 50 day MA. This stock has been a pain in the rear since day one. At first I tried to short it and that failed. Then I went long and now even that failed. I can't win with GU.)


Note: BVX, LRT and MPET have been previously mentioned. Also, notice that all the stocks that I am adding to have been previously mentioned as buy candidates. I am not able to post every single buy that I make to my portfolio. I simply do not have the time. Furthermore, I do not need everyone and their mother knowing the entry price of every trade I make. I manage trades and funds for others and do not need to jeopardize their positions/holdings. Occasionally, when I place a trade in my own portfolio (such as WHT), I mention the actual buy and buy price. Despite this little inconvenience, one can't complain of the quality of my recommendations. If you take a look, a large percentage of the recent buy candidates have gone up substantially. You have to take it as it is. This is a free blog. I put my own time and effort into this. No one is paying me. This is pro bono. I do it for the love of the game. A lot of other traders/bloggers charge a fee in order for you to follow their trades and portfolio holdings. I have never charged and will never charge a fee for this blog. It doesn't matter how many hits or visitors I receive or how popular my blog becomes. But, if you are looking for someone to tell you exactly when to buy or sell something and to tell you everything about their strategy and holdings, then look else where. There are plenty of great blogs out there that offer subscriptions and donations for that. Anyhow, I apologize about the rant but I get tired of some of the ignorant emails that I receive from people who do not know what this blog is about.

Stock Picks and Trade Ideas for Thursday

New Buy Candidates: AIXG, GSI, HGT, KWR, MBRK, NOVA, QTWW, TUP, YPF


Short Sale Candidates:



Add To: DGLY, PPO, WHT

Hazy, Lazy Market Day...

Look for this lazy market trend to continue. With May and the summer months approaching, I fully expect volume to remain stagnant and possibly drop even lower. This will lead to more meaningless up and down action. I scanned through my watchlist a bit earlier and haven't found any new ground breaking stocks. Although I haven't scanned through today's market results, I don't expect to find anything worthwhile. But if I do, I will most likely post it later on.

Stock Picks and Trade Ideas for Wednesday

New Buy Candidates: None

New Short Sale Candidates: DECK (re-short), FSLR

Add To: ABAX (short)


Note: DECK may offer a better shorting opportunity this time around. Look for a high volume close below the 200 day MA. FSLR closed near its LOD yesterday. The last mention of FSLR as a short sale candidate was premature. I will be keeping an eye on it to find a better shorting entry.

Stock Picks and Trade Ideas for Tuesday

New Buy Candidates: CLFD, TIGR, VSCI (previously mentioned as a rebuy on April 2nd)

New Short Sale Candidates:

Add To: DGLY (on a pullback), VSCI (if you already have a position, now is a good time to add to it.

Note: If you choose to play CLFD and TIGR, be careful with your entry as both are thinly traded. TIGR has been experiencing more volume so it may offer a better entry than CLFD at the moment.

A Bit Under the Weather...

I apologize for my lack of posts these past few days but I haven't been feeling that well. Despite this, I still wanted to keep everyone up to speed as much as I can. I will post new long and short candidates shortly.

Time to Take Advanatage of the Patch of Strength

Hey guys,

I'm back! I've been a bit busy for the past few days and haven't had time to post on my blog. Overall, this was a very good week. Although some of my short positions took a beating, all of my long positions have done quite well. Therefore, I am not complaining. I plan to utilize this small patch of market strength to my advantage. Gains on the short side always pale in comparison to gains on the long side. It is difficult to make a 90 to 100% return on a short (almost impossible). On the long side, 100% gains are quite commonplace. So which side do you think I'd rather be on? This isn't a trick question. No matter how many short positions I play or mention, trust me, I'd always rather be on the long side. But that is only when the market is on my side. So far, the market is showing us that its short term trend is up. Who knows how long this will last? It's all about taking advantage of it while its still here.

Trade Journal For Thursday

New Buys: WHT (in at 3.11)

Added To: DGLY, GNET, GU, HDSN, ICO

Sold for Profit:

Sold for Loss: DECK (cover)

Stock Picks and Trade Ideas for Thursday

New Buy Candidates: ADEP (rebuy), AREX, VISN

New Short Sale Candidates:

Add To: DGLY, ICO, MRB, SNT


Note: If I find more, I will post them tomorrow morning. Be careful treading this market. I am not completely bullish on it. Although my short positions took a beating today, I still believe that the intermediate trend will continue to be bearish. This uptrend may last anywhere from a few days to a few weeks. It all depends on who is driving it up. If the institutions jump in, we may head above the 200 day MA. It all depends. I'm not a fortune teller. I don't have a crystal ball or a black-box trading system that tells me what secret stock to buy. Every decision I make is from careful observation of charts, news and historical information. My opinion is that even if we do rally up toward the 200 day MA, the rally will not last. We may trend above the 200 day MA for a bit (anywhere from a few days to a few weeks), but that is it. The indices will most likely not base and will once again, go below the 200 day MA. Of course, this is if they even reach that level. This scenario will take a while to play out. Still, this is my opinion on what may happen. I am very interested to see what happens regardless if the outcome is what I predicted. Regardless, I will take advantage of every great long position possible and even the occasional short sale if I need to.

Stock Picks and Trade Ideas for Wednesday

New Buy Candidates: KRO, LRT, MPET, MRB, NOG, PPO (previously mentioned)

New Short Sale Candidates: CMED, DECK, MTW, MXB, SMA, STT

Add To: CMED (short), DECK (short), GTE, HDSN, IDRA, NOG, SMA (short), SNT

Cover: RBCN (partial)

Note: CMED is a good initial short. If you are already short CMED, now is a good time to also add to that short position. Again the same goes for DECK and SMA as well. If you still have NOG, hold onto it and add on a dip. If you don't own it, wait for a dip before pursuing.

Stock Picks and Trade Ideas for Tuesday

New Buy Candidates: None

New Short Sale Candidates: None

Add To: None

Note: I will post new stock candidates periodically, throughout the day.

Update: As of now, there aren't any new longs or shorts that I really like. If you need ideas, just look at some of the longs and shorts in the past few posts. I posted a bunch of them and they should be more than enough for todays stagnant market conditions. If I find anything worthwhile, I will post it.

On the Move: BEXP, CSIQ, GNET, GSX, HA, HDSN, NGS, OCCX, PSTI, REP, REXX, SUTR, TACT

Here are some of top stocks to keep an eye on and possibly in ones portfolio. Some of these have been previously mentioned buy candidates and others are brand new.

On the Move: BEXP, CSIQ, GNET, GSX, HA, HDSN, NGS, OCCX, PSTI, REP, REXX, TACT

As you can see, the overall theme is energy related stocks. This includes: BEXP, CSIQ, GSX, NGS, REP, and REXX

Some technology stocks are present such as HDSN, GNET, TACT

Biotechnology related stocks include OCCX and PSTI

Metals: SUTR

HA is the lone airline stock. The stock has been performing quite well since one of its rivals has shutdown. This will be helpful to HA's earnings and revenues in the upcoming quarters.

Tips on Navigating and Surviving the Current Market Conditions

Here are several tips that I have compiled on surviving market downturns.

1. Cash is your friend. Make sure that most of your portfolio is in cash. 3 out 4 stocks decrease in value during bear markets. Instead of trying to fight the tide, keep cash on hand. Place cash in money market fund or CD for a short period of time (up to a year at most).

2. Think short term. Focus on short term trades. Also make sure that you use a shorter time frame for determining your exit strategy (utilize the 10, 20 and 50 day MA).

3. Hedge your portfolio with some well timed short sale trades. Try and short stocks that have recently fell below the 50 day Ma (for short term trade) and the 200 day Ma (for an intermediate to longer term trade). Although shorting does not produce the same gains as going long, it is still better than nothing.

4. Refrain from using margin. The only use for your margin should be the occasional short sale.

5. Patience. This is probably the biggest problem that most traders have. Traders by nature are usually very inpatient, emotional, and constantly seek self gratification. All of these traits are harmful and are one of the main reasons why so many traders fail. The few that are actually able to remain patient, disciplined and unemotional are the ones that succeed.

Stock Picks and Trade Ideas for Monday

New Buy Candidates: ASIA, CVM, DYAX, IDRA, PPO, SGN, SIM, SNT, SUTR

New Short Sale Candidates: ANF

Add To:

Time To Sell:

Note: Many of the stocks that I've posted have already been mentioned before. If you are already long or short these positions, now is a good time to add more to that position. For instance, ANF was previously mentioned as a short sale candidate on March 6, 2008. If you were already short from that point, now is a good time to add to your short position in ANF. The same goes for long positions. By adding to your best performing stocks, you are maximizing your profit potential.

Market Indices Take a Dip

Although all of the major market indices were down at least 2%, only the DJIA was down on average volume. The NASDAQ and the NYSE were down on below average volume. One thing that all the indices have in common is that they are treading on thin water. Another slip up and the majority of the indices will close below their 50 day MA. If they do (and on above average volume), then look out below. I would not be surprised if we retest the mid-March lows. If we find support their, I will most likely cover my short positions and go long for a bit. If we fail to hold support then it will be time to short again. Short term strategies such as these are helpful. The current market conditions do not warrant a longer-term plan. I will be fully long again once the markets truly bottom. This could take anywhere from a few weeks, months or several years. In between that time there will be plenty of short-term opportunities to make some quick gains. The important thing is to keep a clear, level head and open mind. The returns/gains will surely follow.

On the Move: SNT

Here is a stock that I have been keeping a close eye on for quite some time. It has finally broken out on high volume. If you choose to play it becareful. The stock is low in price and usually trades rather thinly. The chart on the stock is bullish and there isn't any news out in connection with the move.

Boredom Slowly Sets In...

It is hard to believe how slow and sluggish today's market action is. Here we are, down over 130 points and yet, nothing is happening. Volume is pretty much nonexistent and there aren't any noteworthy longs or shorts on my radar screen. The last good long that I found was DGLY. I believe DGLY has a lot of upside potential. Its impressive earnings growth will surely power this stock to new heights if the market holds up. If not, it will have to wait until the market has truly bottomed. For now I will just be watching. I have a very small position in DGLY and I do not plan to add more until the market situation improves. There are no new longs to buy (or shorts for that matter), so I will take it easy for the rest of the day. It is finally April and I have been waiting all winter for the spring weather to arrive. Now it is finally time to enjoy it. Take care.

Stock Picks and Trade Ideas for Friday/Trade Journal for Thursday

New Buy Candidates: BVX, GTE, HA (no longer a short sale candidate)

New Short Sell Candidates: RBCN

Add To: DGLY

Time to Sell: NOG, SMCI, VLNC (maybe)....

Note: HA is no longer a short sale candidate. It has held up quite well and makes a better long position at the moment.
-----------------------------------------------

Trade Journal

New Buys: DGLY (in at 7.20), LL (in at 11.53) These trades were places earlier in the day. Unfortunatly, I didn't have a chance to post them during market hours.

Stock Picks and Trade Ideas for Thursday

New Buy Candidates: BEAT, DGLY, DMLP, EPM, GEA.TO, RIC, SD

New Short Sale Ideas: MXB, SCSC (either as a new buy or add to the position- I mentioned it yesterday).


Note: BEAT, DGLY, EPM and SD were added to the list this morning.

MVIS Recieving Alot of Love A Little Too Soon...

Lately, the shares of MVIS, a low-priced, NASDAQ-listed tech stock, have been on the up rise. That is because the company has recently announced plans to release a portable cell-phone cinema to consumers. This device will perform similiarly to a LCD projector which will allow the user to project video and images onto any surface (like a wall, for instance).

Once this news hit the wires, investors and traders fell in love and were quick to snatch up shares of the tiny MVIS in hopes of a major price appreciation in its stock. I'm particularly excited about the possible potential of such a device and I am starting to get that warm, fuzzy feeling towards MVIS as well. But (there is a but), at this point in time, I think there are more risks than rewards in this investment prospect. I plan to wait a bit for the stock price to fully create a bottom before I go long. Although I may lose a bit of a head start (from the others who picked it up off of its sub 2.00 bottom), I would feel more comfortable plowing more assets into it once the setup is ideal and akin to my trading style. If this product is successful, then I fully expect MVIS's earnings to explode to the upside and provide at least several quarters of increased growth. I will know if this stock (and company) is for real once it finishes working on its base and experiences a breakout. Until then, this is all random speculation and not something I would be comfortable trading in. For now, I will definitely keep an eye on MVIS.

For Entertainment Purposes Only

If there is one thing that I have to stress about my blog, it's that it is for Entertainment Purposes Only. That is it. I am not your broker or your financial advisor! I manage my own investments and trades and not yours! You and only you, the reader, are responsible for the actions that you take. The stocks that I list are also for entertainment purposes as well. They are not recommendations to buy or sell. What you do is entirely up to you. I am not responsible for any of your losses or profits. I am only responsible for my own trades and investments. I have already placed a disclaimer on the first page (the first post on this blog) back in August 2005. That is from day one. Before engaging in any investments (whether it is in equities, options, Forex, etc.), I suggest that you contact your registered broker or financial advisor for help and advice on your investment decisions. Again, this blog is not an investment or asset management service. This is just a entertainment-oriented blog that follows my path through the equity markets. I apologize to my regular readers who have already figured this out. This message is to those who are new to my blog and may not understand the capacity in which this blog should be viewed. If you are new, welcome. Just a few days ago, I had posted my one thousandth post. It is hard to believe that I have been working on this blog since 2005. But then again, those who know me would argue that I am a very committed and dedicated person. All I can say is that it has been a pleasure. I have thoroughly enjoyed working on this blog and I hope that you have enjoyed it as well. There have been many ups and downs. Still, I have dedicated myself to the preservation of my blog. Bloggers come and go everyday. There are few that actually last beyond a year or two. I'm in this for the long run. While most bloggers and traders are either bored, quit or wiped out, I will still be here. I will be here still writing, still trading, and still enjoying the challenges and surprises that the market has to offer.

Stock Picks and Trade Ideas for Wednesday

New Buy Candidates:

New Short Sale Candidates

Add To:

There are no new long or short candidates for today. I will continue to keep an eye on and work with my current list of longs and shorts. For the most part, I have listed some of the best long positions and strongest stocks out there. For a recap, just go through some of my past "Stock Picks and Trade Ideas" posts to see all of the plays. Some of my favorites right now include: AEHR, AXYS, BNK.TO, DSCP, DYAX, GEOI, GENC, GLOB.OB, GNET, GU, HA (as a long), HDSN, IDRA, JRCC, LL, LSR, NOG, OME, PPO, SCL, SKIL, SMS, SUTR, TEC, TECUA, TITN, TNS, VLNC, VSCI, WEL, WSCI, XIDE

Of course not all of the longs performed well. Some like LKQX and QNTA bombed right from the start. Still, the majority that I have picked and selected have outperformed the market by a long shot.


Note: Again, so there is no confusion, I want to reiterate that the above stocks are just some of the top performing stocks that I either recommended, played or listed as potential buy candidates. I do not have a position in all of these above mentioned stocks.

Three Metalsl/Mining Stocks to Keep an Eye On...

The three that I like in particular are SMS, TC and VNP.TO

All three of them have healthy chart patterns and their RS levels have been steadily increasing. All of them with the exception of VNP.TO are listed on the NYSE. SMS is a recent addition to the NYSE and it can be seen on its chart pattern via the sharp increase in volume from its high profile listing. VNP.TO is an interesting play because of its role as a materials supplier (tellurium, I believe) for solar panel equipment makers (such as FSLR). VNP.TO has just reported stellar earnings and I believe that this is just the beginning for this stock.

Here are some charts...

SMS

Although SMS looks a bit extended, it isn't as bad as GHM (for example).

TC

TC has the lowest risk entry out of all three.

VNP.TO

VNP.TO is bar far the riskiest. It is a recent IPO on the TSX. Its supply and demand business model makes it risky because of the scarcity of their product. Still, continued scarcity of tellurium will increase the price of the metal which will in effect increase VNP's earnings potential.

Stock Picks and Trade Ideas for Tuesday

New Buy Candidates: AGX, CBMX, HDSN, HUSA, PSTI, SUTR, WEL

New Short Sale Candidates: SCSC

Add To:


Note: Keep an eye on the buy and short sale candidates from the last few posts. Stocks such as AEHR and NOG may still be good buys for tomorrow as well. Also, it should be obvious that you should pay more attention to the new longs that are showing the most strength price and chart wise. Keep a sound entry and exit plan/strategy and you should be in fine shape not matter what the market throws at you.

Stock Picks and Trade Ideas for Monday

New Buy Candidates: AEHR, NCOC, NOG

New Short Sale Candidates: FSLR (if it closes near its LOD-currently at 282.85), GHM (currently at 52.10)

Add To:


Update: FSLR makes a good short-sale right now. The stock is reversing hard and hitting its LOD on above average volume. This looks like a short-term top for the stock.

Here is the problem with GHM. I've noticed that there are quite a few people that are bullish on it. I'm not trying to bash anyone who is actually long or bullish on GHM. It is just a matter of differing opinions. Anyway, here is the chart of GHM and the reason why I am bearish on it...for now.


Graham Corp (GHM- AMEX) 3 month chart





A. This is where the problem lies. For one, the 50 day Ma is still below the 200 day Ma. This indicates that the stock has not properly set up a base for a healthy breakout. Also notice how extended GHM's movement has been right from the beginning. These thrust-like breakouts are too far away from the initial trend (which has been left behind at the main moving averages (50 and 200 day). Normally, you would have liked to see the trend much closer to the main moving averages such as in exhibit B. The only positive that I can see is the strong RS at the moment. Still, I don't believe that this will be a sustainable move on the long side.

Where Did all the Volume Go?

As all of the major market indices continue to inch up, I continue to wonder, where did all the volume go? For the time being, it seems as if the institutional investors have stepped aside and let the individual investors and traders hunt for bargains. But this isn't the first time. Institutional pressure has been absent since the end of March. Since then, the market has been pretty much on auto-pilot with retail investors controlling the day to day market action. While the retail investor crowd has helped the major market indices stay afloat of their 50 day Ma's, it is going to take some institutional support to maintain this current trend. In fact, at this point, the institutions can make or break the current lateral trend. If negative earnings or some other unexpected economic news hits the headlines, you can be sure that the institutions will be the first to unload their positions. The retail crowd will then be sure to follow.

Looking at the charts with a technical standpoint, I can see that the indices are just leading themselves up to possible resistance. Even if the indices pierce through the 200 day MA, it will take many weeks/months of forming a base before a real bottom is in place. Without a real, solid bottom in place, how will the markets begin a fresh new uptrend? The likely scenario may be that we either face massive resistance even before we hit the 200 day Ma, or we may lead up to the 200 day MA, poke through it and reverse from there and head lower. It is still too early to tell exactly what will happen. One thing I do know is that I do not expect any significant, nor meaningful moves to be placed without the volume created by institutional investors. With their absence, I can only watch and wait. I know better than to bargain hunt in a downtrend. Although I did not personally go through the downtrend of 2000-2002, I have spoken to others and have studied the past and the risks that were involved (back) then. The same rules still apply and ones mistakes happen to be their best teachers, so it is especially important to be prudent in the current market environment.

Stock Picks and Trade Ideas for Thursday

New Buy Candidates: DYAX, IDIX, IDRA, VSCI (rebuy)

New Short Sale Candidates:

Add To: GU

Note: Again, there aren't that many new buy candidates. Even DYAX and VSCI are not really new. I have been mentioning DYAX every other day for the past week and a half. VSCI is also a former long. It performed well up until its big earnings disaster. Still, the stock has found support at its 50 day MA and has picked itself up on brisk volume, making it a good long for time being. IDRA and IDIX were mentioned yesterday. For more buy candidates and ideas for good longs, take a look at the last few posts. Most of the stocks that I have mentioned have performed quite well and may still be good longs.

Stock Picks and Trade Ideas for Wednesday

New Buy Candidates: ASIA, DGLY, IDIX, IDRA, KNDI, SKIL, SXT

New Short Sale Candidates: CALM (short-term), TNH

Add To:

Note: SKIL has been a previous buy candidate. Based on yesterday's action, SKIL still remains a good buy. Ideally, you will want to try and grab the stock on an intra-day dip. TNH has been previously mentioned as a new short sale candidate.

Stock Picks and Trade Ideas for Tuesday

New Buy Candidates: AEHR, DSCP, GLOB.OB, GNET, WEL

New Short Sale Candidates:

Add To:

There really aren't that many new longs that I could recommend. The best stocks to be long are still the same ones that I have been recommending for the last few days and weeks. Go through some of the last few posts and you will find them under past 'Stock Picks and Trade Ideas' headings.

Another disturbing trend that I've realized is the alarming rate speculative stocks and acquisition companies. Not exactly the type of stocks that you see performing well at a supposed market bottom.