Friday, October 13, 2006

 

Closing Comments

If you are a skeptic of this rally, you have been poleaxed for three straight months. However, if you are still sticking to your convictions, skeptical of the bull, your D-day is coming-- next week Tuesday.

On Tuesday, the following companies are reporting 3rd quarter earnings results:

ADTN, BOT, CSX, EMC, INTC, IBM, JNJ, LLTC, MER, MOT, NCC, NVLS, WIT and YHOO.

Additionally, we will get a slew of economic data and it will be interesting to see how the market adjusts to colder weather. Meaning: Will oil jump? And if so, will the market hold its gains?

Recently, I have been forced to go long stock, despite my deep convictions that everyone is fucking moonbat crazy. To date, I maintain large positions in VLO, GD, DNA and SNDK. However, recently, I have been trading more often, scalping profits in EQIX and RACK (short), while taking on new trading positions, such as GLBC and ATHR (short).

Finally, if you are a bull, you must be concerned with the psychotic runs many micro-cap stocks have been on, lately. Stocks like BKHM, VTSS, CMOS, BITS, TPC, LPTH, CMGI, VRSO, CYTR, CYTO, ACOR, AGEN and scores more are ramping, but they are not leadership. They are 3rd rate companies-- that are attracting new money from the gambler class. The guy who is out to make 100% tomorrow. The downside to the gambler is his inability to sustain large losses, causing the hot stock to plummet-- once cooler heads prevail.

I have noticed, when the micro caps start running, the rally is mature and its time to get out.

The question that is the most difficult to answer is: When? Can't I milk one more trade?

Perhaps the answers to those questions and more will be answered Tuesday evening.

Comments:
Hey Broker A. I am just a douche bag moron, or so the market is telling me, so can you tell me if this looks normal for a big listed stock?

http://stockcharts.com/h-sc/ui?s=GS&p=D&yr=2&mn=3&dy=0&id=p76644732749&a=86871125&listNum=1&listNum=1
 
Is that a GS chart?
 
Yes it is.
 
Is RIMM fucked here with the books?
 
GS does rock. I can't get bearish on them, when their are bullshit firms like AMTD out there.

RIMM is not fucked. Non-event.

RIMM fucks its books, hedge fund managers with sub 110 iq's go long and help you out.

Don't worry.
 
broker, agree with you that the froth in small stocks marks the market top. I haven't played stocks under $10 for a while, but I used to trade exclusively these junks. The last one I remember was ELTK I bought at $4.3 after it came down from $6+. Sold at $2.6. It went crazy right before market crashed.
 
broker, I saw you sold FDRY. Seems at a slight loss. Wonder why.
 
Lehman report convinced me to sell fdry.
 
What is your opine on a MSFT-YHOO merger next week ahead of goog's blowout/dilution. That would really cool things off for the googsters and the you-tube deal. I could see this happening as GOOG stock would probably take a hit even with a blowout qrtr. Both YHOO and MSFT traded on unusually huge volume today.
 
Goldman is the new proxy for the market - whither GS the market - it is that simple - will we get a one or two day mini-crash next week? Only time will tell - but this I know kiddies - the first two weeks of October are normally red - these weren't - now we enter the traditional boom season for the market - While 20 or so Dow stocks are forcing a dumbass index to R*E*C*O*R*D!!! highs the remaining 7000+ listed stocks are not sitting on their thumbs and rotating - there are new highs all over the place - history shows that in this kind of situation the SPX makes better than average gains over the next several months. Far from taking luster off the GOOyoutube lashup a Mr Softy with a Yhooooo merger would be the best thing to hit the net in - let me see - 6 years. The street always likes competition as long as there isn't too much of it.

Me I don't give a damn - I'll make money regardless - it's just easier in a bull market, don't ya think?

Have a happy.
 
Since the big stocks seem to
go down after earnings whatever the earnings are. How will Tuesday matter?
 
Tuesday will matter.
 
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