Thursday, March 15, 2007

Evening Wrap Up

I missed the entire day in the markets today. Honestly it was a really nice break from things.

Let's see, where to begin. First of all, I was not honest with my readers yesterday, as I made one trade and didn't blog about it. Honestly, after my recent run of bad luck, I didn't want to jinx it, and it was a small position anyway, 100 BWLD @ $55.59 right before the close. But now that I see it was up 3.2% today, I'll go ahead and pat myself on the back, retroactively. I would consider buying another 100 tomorrow, but it is quadruple witching. BWLD's max pain is $50.00, and while I don't see it going there, the next logical pain point is $55.00. Or, it could just go crazy and head for $60.00. Who knows. Regardless, I'll buy more at some point. I like the chart and I like that there is a catalyst with March Madness.

I set some limit orders this a.m., and they filled. I bought 500 SMSI @ $15.82 and 1000 GIGM @ $12.42. SMSI has some really interesting things going on. It is entirely possible that the Sprint announcement could be a sell-the-news event, but if it isn't I see SMSI going for $20.00 As for GIGM, I finally had a chance to skim the conference call and glance at the numbers, and I liked what I saw. GIGM has a nice chart, and looks like it is ready to sneak in a breakout, barring another meltdown of the Asian markets. It can currently be bought near value, as options expiration will likely keep it pegged to ~$12.50 tomorrow.

I see that IMOS, the chart I posted last night, got punished when it missed and guided down, and I also see that bastard AOB made a nice rebound today. In fact the chart is showing a fairly substantial bullish divergence in the MACD.

While I don't believe that the correction in the general markets is over, we have found a near-term bottom and are probably in for some sideways action until the Fed speaks next week. In my opinion, it is time to go long some select stocks and try to squeeze 2-3 days of gains out of them before the Fed. wrecks everything. Let me be clear that I may dump everything Wednesday, and that trying to trade Quadruple Witching is probably stupid.

All that being said, I really like the following for gains over the next few days.

TALX (may buy in the a.m. Trading at $33- max pain at $35.00. See chart in previous post.)
TZOO- keep watching it!

And just so Mdawsz can see how a real man's blog looks, I will leave with a chart of SMSI.

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