New Buys:

New Buys: CVVT (in at 9.21), DRWI (in at 9.67), LTON (in at 2.32), MGPI (in at 6.36), MOSY (in at 3.31), SOMX (in at 3.54), TISA (in at 0.72), WX (in at 16.99)

Add To: KERX

Watching: ASUR, CFI, CLWT, GNVC, GSIT, ISPH, WRLS

Mining/Gold/Precious Metals: CDY, KBX,

How to Take Advantage Of: Cash for Crappy Appliances

The How to Take Advantage posts/series will highlight mainstream news catalysts that traders can take advantage of. There are many of these types of catalysts and they usually lead to strong moves that produce above average gains. Several past moves include the Oil/gas spike of Spring/early summer 2008, Cash for Clunkers (earlier this year), Single Serve Coffee craze. Other past crazes/manias include the internet/computer craze of the last bull market cycle.


Stocks to Keep an Eye On: ARCI, DEER (?), HGG, IRBT, MIDD, WHR

Happy Thanksgiving!

Tomorrow isn't just a great excuse to catch up with friends and relatives that we haven't seen in a while. It is also a chance to take a break (day off), grab a cold beer (or uncork some fine champagne), bellow out a toast and really sit back and appreciate all that we have in life and all that we are thankful for. There are a lot of people out there that have it a lot worse than most of us. So, let's be thankful for what we have. Happy Thanksgiving! Enjoy it responsibly. I will be out and away from my trading desk on Friday so I will not resume posting until Saturday. If you haven't taken any profits today, do so on Friday before the markets close at 1pm (eastern time). Monday may be particularly bad depending on the the hedgies mood when they come back from their mini vacation.

Stocks to Keep an Eye On

Keep An Eye On: DCTH, DRAM, DSW, GPRE, HPJ, NUAN, SEED, SIGA, SPU

Thoughts: Buying today's dips seems like a safe bet as the market has a high probability of swinging to a strong upward move tomorrow. I would bet on a strong sell off on Friday, so make sure to take profits tomorrow.

New Buys

New Buys: CRIS ( in at 2.70, EOD trade), ITP (in at 2.25), JBSS (in at 14.88, in the AM), LAVA (in at 2.44), NVMI (in at 3.51), SEED (in at 9.55)


Add To: CBOU (up on take over spec), NENG

Watching: DDRX (something is brewing...no pun intended), HPJ

Sold for Profit: GRO (+46% gain)

Good Time For Some Profit Taking...

If you haven't taken any profits during the last few weeks, now is the time. The VIX has become dangerously over-extended to the down side and may snap back up, resulting in a large dip in the indexes. Such a dip can pretty much wipe away any gains you have. Other reasons for selling? Low quality stocks are starting to make moves, the move is on below average volume, resistance at current market levels and failure to move beyond resistance. In order for the market to be healthy, all the indexes must be in an uptrend. The Russell 2000 has not even been able to climb above the 50day MA this whole time since the initial sell off occurred late in October. If the RUT cannot climb above the 50day MA, it will face resistance and that is the point where all the other indexes will follow suit and drop as well.

Stock Picks and Trade Ideas For Friday

New Buys: DDS (in at 15.41), HILL (rebuy, in at 2.05), PCS (in at 6.55), SKIL (in at 10.58_

Bottoming: CYTR, DARA, HTM, PSDV, RMTR

Top Performers: Department Stores (BONT, DDS)

Watching: DCTH, DRAM (should have bought when I first posted about it)

Stock Picks and Trade Ideas for Thursday

New Buys: BONT (in at 11.54), CMFO (rebuy, in at 5.63), OPTT (in at 10.64), PRIM (in at 8.27), TTIL (in at 1.48*)


Watching: CSIQ, PRIM, SLXP, SOLF, SOLR (DB) TSL (recently had a double bottom), WSM


*crap-shoot trade, small position

Today's top winning sectors/industries are: Fertilizers, Food related Companies, and Solar Power

New Buys

New Buys: AMD (in at 7.23), CGA (in at 14.14), CML (in at 21.00), GNV (in at 3.07), GRO (in at 3.02), KERX (in at 2.37), KOPN (rebuy, in at 4.72), RURL (in at 5.89), SCVL (16.49), TMI (12.98), TWLL (in at 11.59)



Check out micro/small cap miners/precious metal stocks and energy stocks

KGN, MPET, QMM

I know that I mentioned that I wasn't looking for any new longs, but a few new buys popped up on my radar so I decided to go ahead and grab them.

Market is acting very strong, and is exceeding my expectations...As I have always observed, as long as you keep finding high quality stocks, keep buying them...

Interesting Finish

It was quite interesting to see how resilient the overall markets are to the sinking VIX pressure. Today's action seems to be hinting towards a green open for tomorrow. This positive trend may continue until the markets hit resistance once the VIX reaches the mid to low 20 area. Overall, I believe that we have at least another day to make decent gains before major selling erupts. HPJ, QTM and XRTX were some of the more impressive stocks today. Both HPJ and XRTX have made terrific recoveries and presented themselves as great buys over two weeks ago. The long term trend will most likely continue to be up once the markets retrace for a bit. At this point I am more interested in managing my positions than hunting for new trades. What I have works, so I have no complaints. I would be cautious if you are now trying to find new trades. I would sit tight, let the markets correct for a bit and take another stab at it once the markets become oversold. One piece of advice that I can share is, to not be afraid of buying high flying stocks that are engaging in large breakouts. Learn about the catalyst behind the move and if the float is not terribly huge, watch the stock. Once you notice that it has a high chance of closing near the HOD, buy it and hold on until the momentum diminishes. A strategy such as that will help you (and myself) grab stocks such as NLST, REV and others when they are just making their initial moves. I too sometimes get fearful and neglect these sort of stocks. The truth of the matter is, these are real winners. The stocks that make huge gains in small time frames. If played right, they can surpass your yearly salary. The tricky part is identifying them (use 52wk hi list or a breakoutlist/high vol) and having the guts to commit enough capital and hold on for the wild ride. Another thing to note is that these sort of stocks appear when the market is bouncing from oversold positions and is ready to start a downtrend. Do not fall for stocks that are making such moves after the markets become overbought as they have a high failure rate. For instance, REV appeared right as the DJIA was finding support at the 5o day MA. NLST appeared once the markets bounced from support.

New Buys

New Buys: DBRN (21.01), FMCN (14.07), HEAT (11.63), JST (35.99), KMGB (in at 14.87), NABI (4.98), SBSA (0.71), THOR (30.68), TWB (9.64)


Wish I didn't miss: CAAS


Watching: DRAM (will pick up if it has positive reversal or if it bounces tomorrow)


Most Frustrating Stock: HPJ


Sold for Profit: PEET (sold half for 31% gain)

Stock Picks and Trade Ideas for Tuesday

New Buy Candidates: SPRD (if you'er new), ZOOM (*bought A/H in at avg of 10.60)

Add To: SPRD (in at around 3.70, back in Sept)



* I usually do not buy a stock A/H or premarket, but because ZOOM is a thinly traded stock and can make a large move, I decided to jump in and take my chances. Should hit at least 12 tomorrow. It is a small position, so if it fails, I will cut my losses somewhere in the low 8 range.

Top Stocks

Top Stocks To Watch and Buy-Breakouts: ATRC, ANF, CNIC, CSIQ, GPRE, OPLK, RINO, TSTC


Top Stocks- Bottoming: APP, DAR, SLTC, WUHN, WZE

Top Stocks- Base Building: CHLN, CRIC, CRXX, CTHR, LIWA, MPG, OSUR, SBSA, SSTI

Psychological Indicator Confirming That The Rally Still Has Legs

http://finance.yahoo.com/news/ALL-BUSINESS-Can-the-stock-apf-1309839524.html?x=0&sec=topStories&pos=1&asset=&ccode=


The fact that these so called analysts are starting to get bearish is reason enough for me to believe that we still have some room to go. I will take some profits when the VIX hits 20, but I will be right back in once it jumps to over extended levels. The authors comment about rising interest rates leading to market declines is laughable at best. Who is she fooling? I guess a sucker is really born every minute. The last time I checked, interest rates were constantly being raised during the last bull market rally that ended in late 2007. If anyone actually followed that advice and stood on the sidelines during the interest rate hikes, they would have severely underperformed the market and missed out on some of the biggest possible gains. I'll be fair and say that on the days that interest rate increases are announced, the market does usually take a dive, but it is usually a short/temporary dip that provides a buying opportunity. When interest rates increase, markets usually follow. I think CD interest rate action is one of the biggest indicators of market direction. Back in March/April 2009, I slowly noticed CD interest rates increase. Coincidence? I think not. And why not pay you a slightly higher interest rate while they use your money to make an even higher return in the ready to rebound stock market?

Industry Watch: Single Serve Coffee Stocks

Keep an eye on stocks such as GMCR and PEET. I have a feeling that they will both increase in price in the near future. I also have a feeling that one of them will be bought out. Just a hunch, but you never know. In any case, both make great long term trades and investments.

In any case, I am long both stocks.

GMCR (in at 68.25 and change)
PEET (in at 32.05)

New Buys and Stock That I am Watching

New Buys: EONC (in at 3.47), REV (in at 12.11 in the am),

Gold/Precious Metal Rally

Gold and Precious Metals are the real winners today.

KGN, THM are doing well...

Stock Picks and Trade Ideas for Monday

New Buy Candidates: ENMD, GKK, KNDI, MGPI, NCT, OPTT, PACR, SNIC, UEIC


Add to: ARST (in since it was trading around 11), CATM, PEET (lifetime high/vol)

Stock Picks and Trade Ideas for Thursday

New Buy Candidates: FSYS, GIVN, HPJ (rebuy?), ICLK (high quality/earnings for longer term trade), MELI, PARD. PCX, PDC, POWR, SANM



Add To: CATM, PWER

Nice Bounce...

...but is it going to last. It may last a few days. Looks like the high quality stocks are the ones holding up well. Lower quality, speculative stocks have outperformed since the initial dip.

Short Candidates for the Next Few Weeks/Months

New Short Candidates: CPLP, DF, DNR, GERN, IRE, LDK, MOD, RBS, RDN, UTA

Out of all these, I like CPLP, DF, DNR, GERN, and LDK the most. They have excellent breakouts to the down side and they have already cleared past the support at their 200 day MA's.