End of Day Notes

The day started off awfully quiet, with investors waiting for the FOMC minutes to come out at 2:00 pm. Just as I expected we saw a sharp decline in all indexes, then a correction back up, then a mini rally immediately following the announcement. It didn’t matter if the news was good or bad- what mattered was that there was news, and that set off a trigger that told people to buy. Funny how it works.

Take a hint
I was heavily bearish yesterday ahead of the consumer confidence data this morning, but when I saw that my shorts (FRG, FTEK) were actually green, I had to cover before the next set of data came in at 2 pm. Turns out that was a good move considering that FRG closed even higher. Meanwhile, I entered long positions in steel (STLD), and transportations (ACLI… got this pick from Fly). I’m seriously considering taking early profits and rebuying next week… but then again, I was wrong when I decided to sell OMCL two days ago at $17.46 thinking I would get it cheaper today, which is now at $18.00. Anyway, I’ll keep it simple and use the Dow as my indicator- if the Dow can breakout above 11,400 I’ll hold my longs, if it retraces, then I’m out…….. that’s just me trading in the summer.

Bullish Stocks I used to Short…

Take a look at these stocks I’ve been shorting. When I quit shorting them, usually that means I’m afraid of a breakout. Keep them on the radar, because if we see a good rally during the Fall, these stocks may take off too. If not, I’ll short them again:

• People Support (PSPT)
• FuelTek (FTEK)
• Fronteer Development Group (FRG)
• Rentek (RTK)
• Omnicell (OMCL) , well I never shorted this, but I did cash out my long thinking it would fall.
• Alaska Communications (ALSK), here’s another stock I never shorted, but sold early thinking it would move down a bit…. ouch.
• CTC Media (CTCM) – a good company with good fundamentals and technicals. I shorted thinking that the IPO investors were ready to cash in. Well, hasn’t happened yet.

Here’s Fly’s picks:
ALOY, OSTK, NTES, EBAY, VCLK, MFE, STMP, LQDT, QPSA, ENTU, WBSN and TOMO.

If you think ebay will rebound (like me) I also suggest looking into the Internet Holders ETF (HHH). It’s been really beat up thanks to eBay and Yahoo. I’m looking at them options.

Also add TZOO to the internet stock bulls. This stock is too scary for the bears to touch right now.

The Dow is currently testing 11,375 again. This is the fourth time in the past two weeks. Look for 11,260 as support, and 11,042 as a sell off support.

ViroPharma (VPHM) is up big premarket on positive Hepatitis C data. This stock is in the process of a big comeback. Other boitech and pharma stocks are up in sympathy on small volume, such as STEM and PDLI. Other notable stocks making noise are MEDI, AVNX, and ENDP. Meanwhile, I’ll continue to type softly.

Volume should pick up today. We get two big news items coming up…

• Consumer Confidence at 10:00 am
• FOMC minutes at 2:00 pm

Should be interesting since they both will tell a lot about our economy. If the news is “economy is slowing”, market could sell off.

Other news… Ernesto

• Dumping rain on Cuba
• Could be upgraded back to a hurricane as it heads for Florida. Pick up some hurricane stocks tomorrow.

On the Radar

• Hurricane stocks: NGAS, FUEL, BDCO, HOKU
• MauiTrader adds to his bullish picks: TZOO ABCB PT
• China Life Insurance (LFC) – a former breakout stock that I sold too early in is reporting tomorrow. Dump?
• Best Buy (BBY)- expanding into China.
• Viropharmaceutical (VPHM) – is making a mad comeback. Reported yesterday.
• The usual momentum stocks I track: MED, NVEC, MLS

I was posting day trades here, wasn’t I. Ooops. You can now find them here.