A few favorites on a Pullback...

In the event of a nice pullback, here are a few of my favorites:

Random:
BEE
DNDN (Pleaaaaase pull back.. Excitement is bubbling, May 1st coming soon!)
HSNI
AAPL at 211.. Fill that gap!
LIWA

Next generation internet/data center plays:
RVBD
CIEN
CSCO... Did you hear about the CRS-3??? Look it up.
RAX
APKT

LED light plays:
AIXG
VECO

Fertilizer Stocks:
POT
MON
SQM (Note: SQM also has 30% worldwide market share of Lithium as well!)

In the (unlikely) event of a breakout and continuation, I like ZANE for another move higher (Look at the 60 minute chart and tell me you don't see the potential breakout.)

I will probably post a bunch of charts on Sunday.

Always remember, you may be right but ...
"The market can remain irrational longer than you can remain solvent." -- John Maynard Keynes

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Watch out for the Top...

I like to watch the Money Flow Index at the WSJ.com... Big money block trades have been selling out of index ETFs in waves all week... more of the same today:

Not to mention, the S&P 500 futures just tagged the exact high from January today (1148).
24 days since the low on Feb. 5th and we have 4 down days (5 if you count Feb. 25th when it was down 0.75)
9 consecutive up days including today.  We are going to have a hell of a down day anytime now.  I'm not proclaiming the end of the bull market but I am however, suggesting a nice pullback.
My initial target is 1115-1110 area which would land the S&P 500 futures on the top of the large consolidation area from November-December 2009.
Second target is around 1090, at the bottom of the same consolidation area and also near the bottom of the large channel starting around April 2009.

Get your shopping lists ready and pray for a pullback to buy all your favorites on the cheap!

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HGSI: 10% pop very soon

HGSI about to breakout.. no time to post chart, as I'm at work... this should be a 10% move (or more)... It's hanging at resistance, begging to BTFO.

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Its been awhile...

The market was melting down for week or so and took my favorites with it.  That's the price to pay for playing with momentum stocks.  I was nervous for a little while, considering we dropped under the 6 month uptrend line for a day or two.  Those fears were put to rest when this week started with two strong advancing days with really strong internals (up volume and advancing issues).  This leads me to believe that the market has hit a bottom and is returning to the upside.

As far as charts go, sometimes you have to make decisions without them.


I like Goldman Sachs a LOT here considering it got massacred during the selloff, even after the unreal earnings it announced.  I think GS will go on a tear here as it tries to makeup lost ground.  It needs to get through some resistance right above current prices but then it should run.  Obama's administration has a lot more bark than bite and scared the big banks for a little while.  The markets seem to have shaken that off.
For the record, the chart also looks good.  GS bounced on a long-term resistance/support line going back to 2006. (I couldn't help myself.. I had to throw something in about the chart.)

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FCS: Strength on Selloff

FCS showed great strength in the face of a 2% selloff for the market today.. The pattern looks great too.

Notice the volume surge after earnings.. I don't even need to read the news to know what happened there!

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CIEN: Longterm IT Play

I was led on a wild goose hunt after reading articles like this Bandwidth Shortage.

It finally brought me to Ciena.  This seems like a great play on networking issues.

Ciena provides communications networking equipment, software, and services that support the transport, switching, aggregation, and management of voice, video, and data traffic.

Credit Suisse upgraded this to outperform 1/19/2010.

My initial target is 16.60 but I plan on keeping this for a long time after that.

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MSPD: Mindspeed, Godspeed

Mindspeed Technologies, Inc. designs, develops, and sells semiconductor networking solutions for communications applications in enterprise, broadband access, metropolitan, and wide-area networks (WAN).  Mindspeed Technologies sells its products directly to network infrastructure original equipment manufacturers; and indirectly through electronic component distributors and third-party electronic manufacturing service providers in the Americas, Europe, and the Asia Pacific.

Lots of momentum here.

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SPU: New China momentum

Sky People Fruit Juice... Funny name, explosive growth:

2009 preliminary revenue of $58 to $60 million and net income of $15 to $16 million.
2010 Guidance: Revenues of $92 to $102 million and net income of $19 to $21 million.

Looks like this is getting some momentum.

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HITK: Generic Pharma

The large volume breakout area held as support, the gap from 12/9/2009 will be the stop loss. 

Hi-Tech Pharmacal is another cutting-edge health care company. While big pharma is spending billions on research for the next blockbuster drug, HITK is finding innovative ways to challenge patents and deliver the same prescriptions to consumers at a much cheaper price.Hi-Tech's latest earnings rose 566.7% to $7.4 million, or 60 cents per share, compared with $1.1 million, or 9 cents per share, in the same quarter a year ago. In the past month, the analyst community has revised its earnings estimate 29.6% higher in anticipation of another strong report in early 2010. (TheStreet.com)

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GMXR: Even better now

This actually gave a perfect setup right now.  It fell back to the rising support line, giving a clean stop around 12.

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ASYS: Breakout soon?

Chart is hanging at resistance.. Looks like consolidation before a breakout to me.  With the solar stocks breaking out lately (see JASO, SOLF, FSLR..), this supplier should go right with them:

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GMXR: My second favorite chart

GMXR: This Texas wildcatter looks like its ready for a near 25% breakout ride to resistance at the gap down (2/26/09).  This is currently my second favorite chart (right behind SINA).

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GMCR: Time for a quick short?

GMCR has been rocketing upwards lately, but it looks a little top heavy here with those nice high wicks.  Be very careful playing with fire,  this is in a SERIOUS uptrend.  Have your sell button ready if this starts to fall.. be ready to take quick profits on the short side if it drops, no need to hold onto a short in a huge uptrend.  GMCR could reward you with a quick move down here before it resumes its uptrend... Be patient and wait for a down day in the markets, I feel like this will get killed with overall market weakness.

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GILD: Long term buy?

GILD looks good at these levels for a few months worth of buy and hold in the retirement account... with a clean 10% stop loss of course near 41.

This could move up on the hopes of their new HIV drug combo.

GILD news

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GOOG: Time to buy?

GOOG is intriguing here after that big pullback today.  It fell back to support near the highs of April 2008.  This drop is a hangover from the Nexus One announcement... probably a decent entry to go long... WITH A STOP OF COURSE.

Did you see the nexus one? http://www.google.com/phone 

Also, as of Wednesday's google phone announcement.. drum roll please...

The first ever advertisement on the Google homepage!.. check it out www.Google.com

The Nexus One has some real potential for GOOG... Think of how amazing that advertising slot on the google homepage is.. Best advertising money can buy (and its all theirs.. and free)

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SINA: My new favorite

This looks like a coiled spring, waiting for a large breakout.  A great way to catch some hot Chinese stock action:

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JASO: Another solar breakout?

This looks primed for a nice run.. (weekly chart)

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HGSI: amazing momentum

This one is a beast... If it pulls back to the 29.30-29.50 area I would be a big buyer:

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BA: Long term hold

Looks great for a longterm hold... I wouldn't be surprised if this makes a new high over the next year or two since the Dreamliner is now in test-flight mode. A slow and steady double? A great retirement portfolio pick. (weekly chart)

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ARII: Primed for a nice breakout

This chart is looking very nice for a potential 30% gain:

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DNDN: FDA approval

DNDN chart looks OK.. but I'm more interested in the FDA approval of Provenge.. coming soon (May 1st deadline):

Might want to try a ratio strangle (maybe 2:1 or 3:2 bullish tilt) on this one because it could go either way.

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TWC: Short?

I like this for a potential longer term short.  Disputes with FOX and other companies could lead to increased costs for TWC as new contracts are being created for the new year.  They would be forced to pass the cost onto customers at a time with 10% unemployment.  I pose the question: For a financially responsible citizen (assuming there are some left), what is the first thing to go when your bills are piling up?  I think its cable:

Death of Traditional TV... 

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