Weekend Update

My overall picks during this last week were 13 for 20 on "trigger" rate, for a combined gain of 172%.

From the above statement, I would definitely say this first week in the new format was a success. When I thought about this new way of doing things, I figured that possibly 30% gain weeks would be really good. Turns out I was a tad bit wrong. You must also take into consideration that that number is an approximation. Depending on how good of a trader you are, that number could be higher or much lower. That number takes into consideration that you are an average trader that played every "triggered" stock.

Okay, let's take this next little bit to review the indexes. Both the Dow and the S&P are in very similar positions right now. They have crossed their 50-day MA's on Friday (which is a big buy signal for futures players...easy 16% gain on overnight hold, 109% on intra-day trade), but look to be running into trendline resistance. The real trades seem to be locked in the smaller time frame charts. While the Dow and S&P act in unity, the Russell is just in a league of its own...which is very weird. Typically in a recession type environment, small-cap names will get hit the hardest. Right now however, they seem to be outperforming everybody else. A long-term look at the chart shows a very rigid "V" pattern. I'm expecting a nice collapse to around 700 even in the weeks to come.

Now let's take a look at some stocks that seem to be good plays for Monday:

KTOS - For you longer-term players out there, this stock appears to be one that may perform well over the next month. On Friday, it managed to close above its 50-week MA, something it has not done in the last 6 months. I believe there will be a nice slow follow-up to this as long as the stock opens above 2.06 on Monday.

RHD - Unfortunately, I missed this one as a pick for Friday. It would have been perfect considering that the stock closed above its 50-day MA for the first time in a couple months. The thing is, it still loks rip for a breakout soon. Volume has been pretty good lately, so anything over the high of the day on Friday looks appealing.

EXAS - This one is nothing but a simple two-day popper. By now, you should know how to play these ones. Green to red action should signal a good short in Monday, but watch out for a possible run to the 200-day MA at 1.25. If it gets to that, there will just be too much resistance for it.

ENAB - This one just gets better and better!! I thought one day would be great, but now we've got two, with the second having huge volume. The more buying volume, the more selling volume when it collapses. Simple green to red action should set off a wall of trailing-stop orders.

PTQMF - Trying to put a comeback story together with a couple of positive days lately...but there is just zero way this will hold up when it moves from green to red. I would like one more day of positive price action before the collapse. We might or might not get it.

Okay, so those are the big five that I'm watching for tomorrow. That 172% from above also does not include the follow up on CHTL. That stock has gained another 40ish% since my mention on the waayy overdone selling. Another couple cents or so, and that one's a nice doubler!

I guess the weekend is coming to a close. That makes me depressed almost...but then again, hopefully I'll have another 100+% week in which all of you will grab some solid gains. I don't think I know too many people that can almost triple their starting amount in five days! :) Just got to stay focused and discipline. That's all.

MK