Monday, October 03, 2005

A Day Without A Conclusion

Stock indexes opened near their highs for the day, then in very choppy trade moved lower to eventually close near their lows of the day. Neither the bulls nor bears really took control as the indexes ended mixed inbetween .2% points up and down.

The market action was very boring, as far as the indexes are concerned. It appears, for now, that is what we have more of in the future, since both sides have a weak argument. The bulls and bears argument are both boring and getting quite old. Hearing the same arguments day after day gets REAL OLD and helps NO ONE.

On the other hand, the action in individual stocks paints a different picture. As you can see below there is plenty of action in individual stocks. Unless you have HUGE 300 to 1 kind of daytrading leverage on the indexes, stocks is the only place to make BIG money right now (not including smart option trading, of course).

The caveat: They just can not be any stock. You want stocks trading above the 50 and 200 dma, have huge volume surge coming out of a good base, are in a strong sector--top 20% of 3 or 6 month price performance, and PREFERABLY has great fundamentals or a nice turnaround in fundamentals. Of course, there is more, but if you always look at the stocks I take everyday, you will soon be able to see the patterns in them. If you dont know how to find them, remember I wrote a Worden Submission in early June. I am SirAloha.

New Swing Longs: CTHR HDB CMED ABAX PDLI KEM SKIL BRLI JDO RDY ALFA CDMS

Longs Outperforming Market: SMTS MCF(50%) ARD(80%) TGC VRTX(55%) SSFT GMXR(90%) AKAM HOKU MNG FIX ACPW ZIGO DCEL(225%) RG(45%) ANAD DESC(135%) PRLS(135%) MXWL FLSH BMD(130%) SYKE(40%) BVF KNDL(125%) TMWD AAI LCC NRPH(50%) ALSC CGPI BTJ---------A lot of the same names you see everday (stocks up over 40% since original purchase)

New Swing Shorts: RHD DLX ACS

Shorts Outperforming Market: NCTY WCG VLCCF WMAR

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