____________

With my $ATPG position up roughly 8% today, the temptation is to run to the nearest bar and “start drinking at 11 a.m.,” like some washed-up mook frat boy who refers to blowing lines of cocaine as “going skiing.” Well, I have news for you: A country is defined by its culture, so quit acting like a scumbag and show some respect to society at large.

Instead of chest pounding, I want to run you through my thinking on this holding, namely why I am not taking profits just yet. As you can see in the updated 5 minute chart below, the stock has smoothly held its gains throughout today’s trading session. I see no sign of sellers loudly arguing that the move higher is unjustified. Instead, note how the issue is calmly coming to terms with the higher price, by way of orderly consolidation.

Even on a 5 minute time frame, all major moving averages are holding, and therefore, so am I.

____________

Comments »

____________

It behooves you to at least acknowledge that today’s pullback is harmless and healthy, with bonafide areas of underlying strength. There are plenty of names that continue to scream higher, such as $BIDU and $CMG, while we are also seeing some money rotate over to names that have been setting up behind the leaders, such as $ATPG, $RIG and $HMIN.

To be sure, there are plenty of names in the red. However, today is far from a bloodbath. If the selling starts to pick up this afternoon, then that would be a reason to reconsider. For now, though, today is a healthy pause, and I am treating it as such.

Finally, keep $BP on your list of scans. It looks a lot like $ATPG did before today’s breakout. With the oil spill out of the news headlines, and with elections coming up, this one should resolve to the upside out of the tight apex of the multi-month symmetrical triangle.

____________

Comments »

[youtube:http://www.youtube.com/watch?v=2bbs7jPsSRE 450 300]r

__________

[youtube:http://www.youtube.com/watch?v=h-y4pp1Mgjc 450 300]r

Comments »

____________

Much to the chagrin of steadfast bears, Big Blue, a.k.a. $IBM, is knocking up against multi-year highs. You may recall that back in early August, I wrote a piece discussing the implications of $IBM breaking out above the $130 range, which has been resistance dating back to 1999. If Big Blue can, indeed, complete the major breakout in the coming weeks, then I believe that the broad market will be catapulting higher as well. Remember, we are talking about a resilient technology firm with a market capitalization of $169 billion, which was a thriving company long before anyone knew what what a website was.

Looking at the stock in multiple timeframes, in the short term $IBM is extended. However, the weekly and monthly charts should illustrate how technically sound Big Blue is from a broader perspective. This time around above $130, the odds favor a successful resolution. Even if you style is more amenable to trading higher beta, small cap stocks, Big Blue should still be on your list of broad market scans, right next to $FCX.

_____________

_____________

_____________

Comments »

_____________

I bought a full position in $GNK. The stock has a monstrous 25% short position. In addition, as you can see in the daily chart below, the stock also broke out of a tight falling wedge pattern today. I expect more upside in the short term, which will put an awful lot of pressure on the plethora of bears for this well-managed shipping company.

All trades are timestamped inside The PPT.

_____________

_____________

TOTAL PORTFOLIO:

EQUITIES: 66%

• LONG: 58% ($ATPG $CSTR $GNK $HMIN $NANO $PAY $TIE $VMW)
• SHORT: 8% ($QID)

CASH: 34%

Comments »

____________

It may not me very prudent to constantly be a contrarian in the stock market, but once the closing bell rings I tend be one. While Wall Street: Money Never Sleeps is capturing all of the attention across America today, I am more excited about the long awaited season two premier of Eastbound & Down this Sunday night. One thing about Kenny Powers is no matter how bad of a mood you are in before watching the show, you won’t be in one after it has ended.

As for the market, I bought a 3/4 position in $PAY, a clear leadership stock over the past several months. Recently, the stock had a benign pullback, which has me pouncing on this entry point. Essentially, my bet is that this recent pullback does not represent a Jenga game gone bad type of scenario, where a momentum stock simply collapses all at once.

All trades are timestamped inside The PPT.

_______________

TOTAL PORTFOLIO:

EQUITIES: 58%

• LONG: 50% ($ATPG $CSTR $HMIN $NANO $PAY $TIE $VMW)
• SHORT: 8% ($QID)

CASH: 42%

_______________

[youtube:http://www.youtube.com/watch?v=bgDaVLCaBzQ 450 300]r

Comments »