Weekend Update

Alright, we're getting right to it tonite. Here's the latest chart of the Dow Jones Industrial Average:

As you can see, we successfully used the 50-day MA as solid support early in the week, and that set us up for a nice rally higher again to finish the week. It sure seems like we will try and test the 10,100 mark before too long because that's exactly what we've done over the past two months--just keep testing new highs. So far, we have broken most of these new highs, so we'll just have to see what happens in the coming days. By the way, the 50-day MA continues higher, don't trade against for extended periods or you will get trapped by a fakeout (see the past two weeks for an example of that).

Oil went for a bit of a dive during Friday's trading, and the surprising thing was that the dollar was not on the rise. Speaking of the dollar, it seems to like to just "chill" right below its downtrending 50-day MA. This is another example of why to not trade against the moving average. When it breaks out, then it is worthy of a nice trade, but even then that is not a reason to go long the dollar for anything longer than how long the trade lasts. Knowing when to get in and out is the major part to trading. Never ever be greedy, period.

Before I get to the new picks...one more thing to remember is gold. GLD continues to glide higher. Keep an eye on it to gauge other things and their relation to it. Okay, here we go...OPTT got a nice contract from some Austrailian company, so that should give this stock some life. I'd like to buy a breakout over $9 if it ever gets there, but if not, then it might just be a necessary short. On the note of breakouts, EXLS looked solid over the $16 line on Friday. This should continue...at least I hope so. WG got a pair of sweet upgrades on Friday, and the volume has just been getting start I hope. It has been ramping nicely right along with the price action. I'm really waiting on/wanting a breakout over the $17ish mark so this stock can really start moving. It is an oil/gas play, so momentum could build quickly.

So there are the picks for tomorrow and possibly the week ahead depending on what all happens. Now, here's a little something that I like to do on the weekends that many other blogs similar to mine don't like to...here's a song for you to go into the new week. (Not sure what's up with the car in the video, but the song is a remake of an oldie. This one's by Jay-Z, I believe.)

MK

November 5th Update

Nice big up-day for the market today. Unfortunately, I just don't have the time to make a full update tonite as there are so many things going on right now. I'll give you a couple ticker symbols to watch and then I'm going to call it a day. So here goes...the last half month for NWK was extremely rough. Today it bounced big on some news about a future presentation. I think this will just be hype, and I will be looking for a sell off most likely tomorrow. KAI looks like it is ready for a big continuation week or so after its $15 breakout today. Watch it. And finally, CUR is a stem cell name breaking out above the 1.50 mark and the major moving averages. I bet we could see this trading around $2 a share in the near future.

MK

November 4th Review

Yesterday I said today would be important to watch today's trading to try and get a feel for the market. Quite truthfully, with today's trading, I feel just as confused as before, maybe even more so. Today we did the same exact thing as yesterday but in just the complete opposite way. We traded up about 100 points for most of the day, but right at the end of the day we sold off and closed near the open. So, all in all, we have essentially went nowhere meaningful in the past two days but have been quite volatile nonetheless.

A day after the dollar looked like it could possible be ready for a breakout over the 50-day MA, it gets slaughtered. The dollar index was down almost close to a full point today, I think. With the dollar heading back down, I would not look to short the overall market. Plus, the overall market hasn't been able to breakdown below its 50-day MA. It continues to just use it as nice support. Oil was moving higher again today...because of the lower dollar. Nat gas didn't do much, but that has been the case for awhile now.

Now for a few picks for today...QTM had a second really strong day today, and I assume this is just setting up for a bit of a pull back soon. If you can find some shares, that would be great to wait around and short into negativity. KCP looks prime for a little 50-day/$10 mark breakout soon. We'll see how it acts. TRLG had some unexpectedly bad earnings today, and the stock got walloped. It's down quite a bit, but I wouldn't hesitate to short it if it breaks the $20 line. My guess is that it will bounce nicely her, though.

MK

November 3rd Review

Today was the kind of day where you just want to try and get a feel for the market. After a big down day and then a pretty nice bounce, that's about all you can do. What we saw today was that the market is being held in a pretty negative light by traders. Not once today was it able to break above yesterday's close. Although, at the end of the day today, the market made somewhat of a comeback from its lows of the day. We shall see what happens tomorrow...it's a little difficult to try and trade right now.

Surprisingly, oil was up more than I had expected today considering over the past few days it had generally traded with the market. Nat gas continues to consolidate after its huge multi-month bounce. This should continue for sometime more, but I am expecting a mini bounce soon. Gold was the huge surprise today as it was off to the races. GLD was breaking out to new highs. This was particularly suprising because the dollar index made a run at breaking the 50-day MA today too. Typically, these two have traded opposite to one another.

Okay, now let's move on to some picks to watch for tomorrow. AIN makes the list because they announced some good earnings today and that made traders really buy this stock up today. It appears it is ready for a breakout to new highs over the $21 mark soon, so I'd keep an eye on it. DDRX continues to be a volatile sucker, and that is in part because of the crazy upgrading and downgrading by Roth Capital. Today they announced a downgrade, so I'm not sure what to think of this thing now. Let's watch what happens tomorrow, and then I will comment. HL is a silver play that is somewhat connected to the while gold play. If people continue to like gold a lot, then they will probably like silver a lot too. I would love to purchase this sucker on a breakout over the $5 mark with silver on the move higher.

MK

November 2nd Review

I really hate saying that I told you so, but the market did bounce back just as I thought it would, and it closed up some 80 points. It actually traded up over 100 points early in the day, but it was somewhat silenced after lunch until a nice end of the day rally. If you're wondering where we go from here, I would continue to watch the 50-day MA. I bet we stay above it for awhile, but if we would break below it at any time, I would really think about heading to short the market.

Oil rose today with the rest of the market, much like it has over the past few weeks. I expect this to continue as I have said previously. Gold was a bit of a surprise to me today with a big spike. This might be a sign that the market is ready for another push higher soon. Nat gas didn't do much today...we'll let it be for now.

Okay, so this is a pretty short post tonite. I'm just ridiculously tired and it's not even that late yet. A few tickers to watch for tomorrow are as follows...REV...third day spiker today, my guess is that this will turn over sometime soon and be a nice 5-10% gainer. IUSA...this stock had a nice breakout to new highs today with above average volume. I'm a buyer here for the month ahead as long as the market doesn't really take a turn for the worse. GTCB...this here is looking like it is ready for a 20-day MA breakout. That will be some huge momentum if it can get it.

MK

Weekend Update

Although there was no Friday post, I'm sure many of you were wondering what exactly happened on Friday. To tell you the truth, I was very surprised as well. Here's the latest chart:
The crazy thing is that we have not had this big of move in a long time. The even crazier thing is that we closed up almost 200 points the previous day. Put those two days together, and the volatility we saw doesn't match up with any we have seen since the big crash/panic days when the VIX was up in the 50+ range.

Looking at the latest chart above, I do like the fact that we are trading right around the 50-day MA right now. It is uptrending, so I would continue to not try and trade against the trend for prolonged amounts of time. However, if we would for some reason break below that line, we could easily coast another 200ish points to the 9,500 support area. I extremely doubt that will happen, though. I think we bounce for around 100 points or so tomorrow.

There wasn't too much going on in the commodities world on Friday. Nat gas and gold stayed relatively unchanged from their previous closes. The big mover was oil, and as you can imagine, it was slaughtered pretty nicely. When people don't like this market, they don't oil, and vice versa. Just knowing that is good information.

For tomorrow, RXII has been on the accelerated uptrend over the past few days. It hit its 20-day MA on Friday and really experienced some resistance. I would be ready to short this sucker for around 5-10% soon. Reserve those shares. TSYS looks like it could be ready for a simple breakout over the $9 mark if the overall market can get its act together. If the volume fails to be there on a potential breakout, I'd be cautious of a fakeout.

Alright, there's only two for tonite. If you have any particular tickers to watch, feel free and post them in the comments section of this post. And now, here's a video for the week ahead:

MK