Monday, October 5, 2009

Hot Stocks from My Peeps.

The various people I follow are bullish on stocks like:


  Very often, the biggest gainers of the day are very familiar names.  Why I don't own all of them is a mystery.  Perhaps the most bullish name of the bloggers I follow is PUDA.  I don't own any.  I might buy some soon.

 Invariably -- these kinds of stocks do the best.  The ones I buy that nobody likes:  PACR, GIGM, ENDP rarely do well, although ENDP had a fine day today... finally.

 Of the above names, NEP has definitely been a big fat laggard lately.  It's at support and below the recent offering, the way ATPG was... before it doubled.

 Technically, the indexes appear to be in a bind, above support, below resistance, stuck between moving averages and volume dying.  Nonetheless, some people in ROIAK had their best day of the year.  This is now a true stockpickers market.  Most people I'm sure are having the best year of their careers.  It'll take a LOT of panic to reach a tipping point that triggers panic selling.  And the fact is, the above names aren't exactly overpriced, compared to the average SPX member.

 The other laggard is EGMI which put in my favorite Dragonfly candlestick which usually denotes exhaustion in selling and sets up a potential new trend.  Watch NEP and EGMI (for you bottompickers)

 I think I'll buy some more of the above names, but I think I'll wait for the next red day on the indexes.  I'm going to be very picky now.  Mr. Market needs to show me bargains.   I'm not chasing unless I'm daytrading in which case I set tight stops and bet small.

 But ROIAK/CMLS are good examples of stocks I should have held.  The charts were very much in bull mode... it was clear the FA an TA were working together.   NEP and EGMI are not showing the same action.  Technically, I like to rebuy my ENDP if it pulls back a little.  Today's volume/movement is likely the start of a march to 30.  Or not.

 My goal this week:  Be MUCH more patient.  Observe market action... believe in my value long term holdings.   And ditch this cold.  My throat is sore.

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