January 5th Review

My picks from yesterday were 3 of 5, for a 7% gain (2.3% compounded)

Picks that were triggered:

DNN - "Wait for the negative move on this sucker because the fundamentals just don't add up here." - First down day today, nice chance to short...more to come later in this post.

ABD - "A move over $4 a share in this stock appears to be a big buying opportunity for traders." - We didn't get the move today, but we did get a bullish hammer, which says a lot about the resiliency in this stock. The move may come tomorrow...watch for it.

DDSS - "A move under 1.70 could cause a quick tumble to the 1.50-1.40 area. Watch it." - Nice move below 1.70 today...could have been a quick 3-4% on a trade. If you're still holding, just wait it out for the big drop.

Picks that were not triggered:

EMAG - "My guess is that this arranged deal is going to eventually go through...pick up your shares tomorrow for a gamble." - Stock fell back some today...good time to pick up shares.

NFP - "Any move over the 50-day MA should prove profitable in a short -term buy scenario." - 
The stock ran right to the moving average today, but it couldn't break that resistance. Keep watching.

After three really great days for the market last week, we finally cooled the buying pressure down a notch. I think today was actually somewhat successful, rather than a dissappointing day. It's not healthy to go directly up...that is, we need some slow building higher. If these down days end up phasing the buying, then I know for sure that they are not true up-days. We need a confirmed consolidation if we want this upward movement to stick.

Today I moved myself into another position. Yesterday I mentioned that DNN was my worthiest of stocks to watch. It finally went from green to red today, but I laid off from shorting immediately. I also could have shorted at 1.60, but I ultimately decided to wait until the 1.50 area for a possible big break. When the stock neared the 1.50 area, my order was triggerd at 1.52. DNN dove quickly after the 1.50 break, but rebounded to close at 1.55. It wasn't the best close, but the stock still finished plenty red on the day. The best to hope for tomorrow is another sellers-fillled open. Here's a recap:

Short DNN @ 1.52, on negative close and possible support line break.

Okay, let's get to the picks to watch for tomorrow...here they are:

TMCV - I haven't seen the news, but my guess is that this bank got some of the TARP money. The move was quick today. If we get a break over the highs tomorrow, then this will be another buy. A quick breakdown could happen too, though. Be ready to trade.

AER - Nice signing of a $1.4B agreement today. With a breakout over the 4.50ish area today...I think this stock could easily run to around the $6 area. Wait for a breakout over the high today to confirm that.

PRSC - Nice break over the 50-day MA and the $2 resistance line today. Watch for a continued breakout tomorrow. I think over time this stock has got the ability to run up into the $3 range.

CTDC - This is one of those loved Chinese stocks that lives in the hype. With hype, it moves higher...without hype, it moves slowly lower. The hype from the newly released news is going to eventually wear off. When it does, this stock is going to be a short like the rest of the year minus all of the hype stories that cause the spikes. Wait for green to red action.

RPRX - This stock chart is a beautiful breakout , but it's not one of those kind that is breaking to all-time new highs. Over the next week to month, my guess is that this stock will rally to the $15 area.

MK