Step 1

1. Look for stocks that haven’t really participated in the bear massacre, for they will be my next vehicles to trade.

This is what prompted me to take WDAY, SINA, CRM and SHLD recently. So far, they’re turning out just fine.

Here are the stocks I’ve found today that meet that criteria: LULU, GMCR, ROVI, RBCN, SOHU, BYD, RKUS.

I applied my own personal visual filter in looking for stocks that haven’t done much today. So in essence, these picks are stocks at reference points that will attract buyers up from here. This is all part of how I anticipate strong moves in stocks.

It’s also important to note that after strong moves like we’ve seen today, the market usually follows up with an inside, or consolidation day – which is by far my favorite day to trade. In this case, the market situation and stock ideas should line up perfectly.

I will be buying a few of these stocks today. Will keep you posted.

OA

Next step will be high short interest stocks later this afternoon.

I raise my glass and offer up a toast, for those that have been aggressively buying with me for the last several weeks. It has paid off well, and today’s open offers more gains to sell short dated positions into.

On the day, I am mostly looking to trade around three strategies:

• 1. Look for stocks that haven’t really participated in the bear massacre, for they will be my next vehicles to trade.
• 2. Look for entry points on lower time frames of my favorite stocks to trade options on. Right now, I picked AAPL and NFLX for weekly calls that expire tomorrow.
• 3. Build up a watchlist of high short interest and lower quality stocks. We’ll start getting into this phase of the rally soon.

Going forward, I am going to focus on discussions that will help my readers pick stocks. From understanding market cycles, risk tolerance, building watchlists, and knowing which genre of stock to focus on.

It’s one thing to post winners often, but its another to help readers understand the thought process on how they are selected.

OA

I like trading new issues, particularly about a month or so after they debut.

I like to see them consolidate for a couple weeks post-IPO, then try to anticipate a move that will send shares to new highs.

Today, I like the look of 3 stocks, LXFT, BLUE, NDLS.

Take a look at ADHD, GIMO, TXTR or AMBI to see how these stocks pick up momentum about a month or so off the IPO date.

I bought front month calls in this name, looking for a pop this week.

More later,

OA

SHLD + 4% today. Targeting $45-46.

Yesterday I picked up calls in YELP and SODA as well as a chunk of shares in ZLC. I took off the SODA off the open this morning, and am riding decent sized moves in the other two positions.

At the moment, I am positioned in YELP, OPEN, BIDU, CRM, SHLD, FSLR and GS calls.

I have long positions in KNDI, ZLC, STP, JKS, LEDS, GLUU, STP, IQNT, RVLT, PACB, END, MTG, USLV, NUGT, OSGIQ.

On the day, I am considering calls in GMCR, SINA, and DDD…and longs in BLDP, JVA, GV, and BV.

What’s on your radar?

OA