DJIMstocks.com- DJ Interactive Markets

End of last week we discussed the weekend coming and the possibility of headlines giving the market a short term direction.  Good or bad, just to get things going a bit.  Well, we got a bunch of headlines Monday morning and none of them were good for the bull.   Yesterday, seemed like a slow orderly death as the GS downgrade of Citigroup, the delinquencies in auto loans at GMAC, the Chinese curbing lending, some ugly retail numbers played havoc, leading to an assault on the very important technical levels, the DJIA 13000 and the SPX 1440-50 levels.   Seemingly all wanted to get out before the holiday and possibly start fresh next week, this was most visible in any high beta stock carrying more risk.   You might argue the big money is away this week and they won't burn the turkey while away, but in the age of the computerized black box trading it doesn't take much to leave the switch on and many are set to go off as these levels on the indices are assaulted on.   We just don't know exactly where and we don't want to find out being long.  So, despite the very oversold conditions once again like last week, we are very cautious in stepping a foot in this market.   It is best to wait it out here and if the FED minutes or its specualtion give reason to bounce, well then we will bounce and flip a few stocks into the close.  But...as far as holding stocks overnight and continuously waking up to gap downs is out of the question now.  The pre-open negatives are rampant and it is hard to imagine waking to any good news at this point.  You might catch a nice trade intraday these days and decide to hold for some follow through the next day...unfortunately, it is not happening and you end up trading from your heels.   It's very easy to fall on your butt from this position as all it takes is one nudge...one or two sellers who will get out at any cost and the lack of bidders will do the trick in many of the plays we liked around here.  You simply cannot trade on the defensive and be successful.  If you have that defensive and/or worry feel in a stock, it is best to get out.   The seasonal bias is on the bull side come late this week, hopefully we can just recover some on the indices (getting over Thursdays/Fridays lows would be a start) and set up for early next when the big bull money might come to play this corrective slaughter.....if there is any left!.   We'd prefer to see it that way, instead of bouncing hard this week on very average volume and the Bears coming back and saying it was only on low/average volume.  They'd have a point!.

Three sucky days, one so so day and a really awesome day.   This is pretty much the action from last week.    While this isn't for certain a bottoming action, we can see that this market is working pretty hard to fight off this extreme volatility.    There have been signs of the market rebounding from some excessive selling.    We are glad to see a somewhat different pace toward the end of the week and hopefully it carries into the coming holiday week.    This doesn't however ensure that we won't go down in the near future and break the previous low.   We have to be prepared for any possibility.    At the end of the week, we seemed to have some good action from the solar sector and some bottoming action from the big tech names AAPL, RIMM etc.  This might bode well for the up coming holiday trading week.     Traditionally, the Thanksgiving holiday week has been a strong week for the bulls.    Although we can't promise the same this time around, our fingers are crossed in hope for some good action.    Even just to show some good action, we can demonstrate to the public that this market isn't just a one way ticket, down.    Right now, the most important ingredient this market needs is the confidence.    The confidence level to see a market turning to the upside is comparable to that of August's level.    We as traders don't really know what to expect on a daily basis.    Do we have to deal with gap downs after gap downs or a strong rebound?   This is pretty much the same dilemma for everyone here.     If we put a big wager on one direction, we'd pretty much end up just hurting ourselves.    This is the period where our confidence level, our patience and our discipline level are being tested severely, and repeatedly.     If you took some losses, just leave it behind and do not let it get to you.    The last thing you want, is to go reckless and chase back the losses in an extremely difficult trading environment.

Our game plan here, is to go after the safest and most obvious kind of plays.    We are cutting our sizes down to absolute minimum so the volatility has little or no effect on our position.    Now it's easier to assume that you want to carry some hefty positions to enjoy a day like last Tuesday.   The fact is, for every huge day, there's probably four to five times as many really crappy days waiting to hammer you down at this time.    Since we are still facing a very uncertain market with extreme volatility, we have to use our disciplined judgement to carry ourselves through this downturn.    The bottom line, there will be a time, sooner or later,  where we can go big in the market, but now it's not the time.

Some potential plays for the coming week....

Solars, FSLR JASO STP SPWR etc., this group seems to go the same direction as oil price, and more so lately.    It might be too cute to think that this group can challenge the old high on its own while ignoring the overall market condition.    As long as you have both the oil and market in the green, this is the group you want to be in for some quick trades.    Also, since many of the plays in this group tend to move in a healthy percentage on a given day, we'd think smaller sizes is the prudent way to go.

QSC, it seems this little bugger refuses to pull back in any meaningful way.    Trust us, nothing goes up forever and we'd really like to see a good pullback sooner rather than later print on the daily chart.   If you missed the big run so far, there's no need to chase it aggressively knowing that a pullback may be just around the corner.    We've seen on Friday how quickly it drops from $5+ to $4.30 and that's just a quick 15% that nobody would enjoy.

PCLN MSTR MELI DLB BIDZ,  are some of the recent earning plays that seem to trade much better compared to the rest of the market coming off earnings.

China plays, it is becoming obvious that it's absolutely essential NOT to play the earnings.   We've seen it from the likes of WX and now EJ STV so far that regardless the earning number and expectation, those stocks are getting sold hard.  It is also micro-small caps in general that are not getting a positive reaction off earnings at this time.   So don't expect too much out of these next little while since it's very much a sector problem rather than individual report.   Be careful with other China's reporting this week as well.  We'd look for the group/sector to see some sign of life before we are willing to really get back into some of these plays. 

well that's what it feels like...when you have no patience like us, especially after the early week snapback rally.  Now, it seems its the same old as late day fades rule, yesterdays a bit earlier than the previous and then a battle at around 1450 on the SPX with buyers stepping up to close it above this line.  Indecision is running on both sides (but the shorts may be more nervous), maybe it is plain exhaustion and we all just need the weekend to get here quick and some headlines to give this market a course for the short term.  Still, yesterday was not without what's important to all of us and that is there were a few names off DJIM Journal that were making some noise...

MELI, seems a few agreed with us and came to play as MELI got pushed 5.5pts from lows to highs of day.  Earnings reaction are not always a first day thing as MELI showed yesterday.   Now with it showing up on a very THIN new highs list across the market, especially those tracking NCH's, we'd hope the idle money comes here to spend some time.

QSC, the other day this had a big buyer eating up shares at $4 even, millions of dollars worth, sooner than later this was pushed to the high 4's as such action seemingly always does.  Yesterday's pullback might be sufficient, a plus is it was on fairly light volume. 7mln to 10 to 11 to 3mln volume.   If this was a quick flash in the pan, you'd think we'd have more selling yesterday.  Anyways, this regained the $4+ level and closed at the highs of the day.   A quick volume move might be in store in the short term, watch for that as a possible entry if not holding already.

STV, EJ.... the concentration here the past week was to use STV as a possible pre earnings mover on the heels of WX and EJ.  STV had climbed about 25% since the week started and to many that is good enough!.    So, it is not surprising profit taking was part of the equation after STV released earnings.   All stocks are different and in the case of EJ the pre earnings move translated into profit taking the day of earnings giving it some leg room to move forward on a good report as we saw last night to recent highs.   As we've noted recently regarding WX...expectations are over the top on these Chinese IPO's.   You are not going to get a surprise reaction and a fast move up like with other nice earning reports that come out of the blue and immediately push a stock higher.    These Chinese IPOS' would not be trading on the NYSE now if tremendous earnings growth YOY didn't put them there in the first place.   Great YOY numbers are expected and you could say priced in.    What these stocks need to get a big push higher right after earnings is something almost impossible unless you are a GOOG!.     What we look at instead of YOY growth is how a company performs sequentially to get a better read of how business is progressing the past few Q's.    STV's revenue came in at 14mln after 20mln for the past 2 Q's, so there is nice growth that is ongoing.    Also, things like operating margins,  in the case of STV are just not to be found in many other stocks.   What these stocks now need is the firms to possibly set a good tone in their reports, initiations in the case of STV.   As we said, we like both reports and STV might have been a bargain last night after hours at $32,33,  but it is the market the will dictate the stocks path and a firm or two the day(s) after...a good market would help too!.

Some may call the most recent rally as a massive short covering that will not last.    Well, today those participants got what they wished for, a fizzling follow through, especially late in the day.    Ok, if this is all what it seems, then much of the action in the future can be anticipated, right?   Not so fast!    Regardless how you interpret Monday's action, it was basically due after days of relentless selling.    You don't think this market won't put up a fight and just let it slide 30% straight?    In this day and age, longs still dominate the shorts and bulls dominate the bears.    Most of us are raised to buy stocks, and most of us had to learn the hard way to know how to sell stocks.    It was just an oversold situation that was being taken advantage of and that's the end of that for now.    So where are we now?   We can either retest the lows or trend sideways for a bit.    After a big sell off like we just did, the best case of scenario is always trending sideways, in order to find a true bottom.    It's true that we may still go lower but until that day comes, we'll assume otherwise.

We had a couple of pre-earnings run ups today.    The strength in EJ STV LFT looked particularly good but we have to understand that they are all due for an earnings release.    EJ and STV are releasing on 15th, while many other Chinese co. are releasing on 19th and 20th.   So keep an eye on those releasing before and after the reports.

QSC, it sure feels nervous trading this thing the last couple of days.    After all, it was merely 40 cents three months ago and around a buck three days ago and even up another 50% from our alert late Tuesday.  This one had a tremendous run so far and odds definitely favours a pullback at this point.     This one may have a much higher valuation down the road but at this instant, it needs a pullback.    We cashed out most of our holdings today and will watch how far this one pulls back to in order to find a possible re-entry point if warranted.

PSEM, this one in our opinion is near the end of a setup and something is about to happen.   9 ema has caught up to the recent rise and the next move will determine where this one wants to go.     We have a strong likings to this one but as it's proven to us many times before, seeing is believing and this could use a little help from the tech sector.    No matter how strong we feel about a stock, the stock has to act accordingly to our feeling.    We are eyeing this one closely and waiting for a move.

MELI, reported accelerating revenue and slightly beat the estimates. This one moves fast when it wants to and did at the open before settling down the rest of day. Considering it didn't slide further while most did late, we'd keep a close eye on it here. Also, because it might get a positive spin from a firm covering it as it did last report that pushed it higher. NCH is not far here. CDS , the possibility a firm covering it will put out a positive spin is here also as last Q after earnings. Considering the reaction was muted to their report, we'd look for another angle here such as that to get it going.

The bottom line, if you must trade, trade small, trade those that had good earning recently, and most importantly, trade those that have strong technical setups.    We aren't out of the woods yet in terms of dealing with extreme volatility.    We have to be prepared that the market can swing triple digit point either way on any given day.    This can be a very stressful market if you trade actively.   In our opinion, it's best to go light and pick your play selection carefully.

...and we got ourselves a toro bravo (fighting bull).  We said he ain't dead this weekend, Tuesday was proof....and you know what?...the bravery, performance surprised not only the shorts, but even some of us longs....the scale of it in one big swoop as the bloodied bull fought back was great to see.

We recently noted this was new skool trading..Oct 26th...and finally we got one of those on the long side.
...."let's just accept 100+ /-Dow and 25+/-  point NASD days are old skool.!!!     This is intraday stuff now and we don`t think it was a good day or bad day till we see 250 +/-and 50 point days at the close..."   

Are we jiggy wit it?...We've had all summer to get wit it and now we will most likely close off the year in the same fashion with volatility!

Lets not kid ourselves and admit this was great to see.  It doesn't matter if you made money as many purely gapped.  The reason is,  if you want to make money going forward on the long side this was the medicine you were looking for.  You could not have rolled a better one....This was much better than expected as it came in one nice shot to give the QID's 2x,(-8%) the FXP 2x (-15%) inverse thingy a slow burn...mmmmmm.  Somewhat off topic...but if you want  to short the market don't do it on day 3-4 of the biggest pullback you've seen in recent history.  We doubt many can keep to this game of shorting any index 2x, the FXP 2x without jumping ship as soon as a reversal is in sight or worse a wake up gap up.   If you do want stick to this game plan, do it earlier so you get a big piece of the drop we've had since last Wednesday and not go in the following Monday when the conditions are way oversold short term and risk the great possibility of a technical bounce.  Too many inexperienced traders are entering these plays and getting burned.

Will this move continue today? ..All that matters right now is it was a 'feel good' day, showing the market is capable of a fight.  The bull has some fight in it and this action will open some eyes and most likely bring a better trading environment back.

Before the morning open, we noted we thought the Asian hooligans had some fight in them soon.  Soon was yesterday as many led the way...EJ before eps, hey remember WX moved before EPS ...so who's next today STV?....  We will also get initiations on the STV IPO today, possibly just at the right time.   Yesterdays action should bring some life into earnings plays as well, before and after the report.  EDU, BIDU, JST CSR YGE led with 10%+ days yesterday and a few followed.   The point here is they are not DEAD,  not if you caught a piece of the action.  The HANG SHANG up around 4% overnight.   A note on WX, the expectations were simply too high.   After a few months trading this must be valued at market prices to a certain degree amongst its peers in the industry.  It is way over the top already with it's PE and had nothing left to do but fall without amazing growth guidance.

In this market, we need to look for opp's that may not be the norm.  One example is a QSC or an E-trade.  Monday morning, we were laughing this QSC might be $3 the next day if we dont mention it.   Guess...the laugh was on us as we saw this late in the day over 2.50 and up over 50% after Briefing profiled it's earnings.   Still, not late, even at 2.90 note as it seems to have traded as high as 3.35 AH.   What we think is as this trading enviro becomes possibly more difficult,  we will turn to some 1-24 hour plays like this as an alternative time killer, money maker.  This is something we all can participate in and skin a cat or two on, so as we suggested during the China revolution a month back...give us..the readers your junk and we'll throw in some as well.   This is just the idea of throwing something out for all to decipher, investigate as they please.  Nobody will judge you, its all speculative..We also have Thanksgiving holiday trading coming up which usually gets some junk flying around as the retail traders play while the desks empty at the firms.

DLB PBR PSEM MELI  are a few names of trading interest.

Somehow, throughout the day, it just didn't feel right that we would actually end in green off a couple of financial and pharma companies.    The majority of the market, on our screen, was way off the scale.   End of day it was horrible as many stocks finished -10% or more off and other NASD momo stocks fell another $10-30.  We had the technology(growth oriented), the oils, the golds, the chemicals, the metals.....  just about every group that did well this year was under major selling pressure today. Diversified Metals and Mining -9.3%, Coal and Consumable Fuels -8.8%, Construction and Engineering -7.9%, Fertilizer/Agricultural Chemicals -7.8%, Gold -7.7%   Yes, the pattern is clear and market is loud in what it's doing.    We want to dump the highfliers.    This is in addition to the continuous and relentless selling from the solars, the shippers and the China group which we all were familiar with.     Basically, if you hold anything that is even remotely interesting, there was no escape.

This is exactly the kind of stuff we were talking about the past few days.    Traders just don't want to be the last one out the door given the doom and gloom scenario that is currently developing.    We can't blame them!   Even standing on the sideline, it is still painful to watch and imagined if we were still knee deep in this market, it'd be totally devastating at this point.    The real kicker here, is that the pace of selling is accelerating and we are going to be approaching a climax really soon.    We can't foresee how many more points this market can drop but we feel at this rate, it's going to end sooner than later, and perhaps during this week.  Considering the magnitude of the selling in the last 3 days, many are still knee deep due to the quickness of it all.  Therefore, you need to know there is an overhead of supply leftover in many of the highfliers just waiting for a bounce for others to pounce on.

Is there a bright side to all this?   We always think that after we survive such a crisis, we'd emerge as better traders at the start of next cycle. We all learn something new during these phases.

We feel Asian market may try to find a bottom the next couple of days and that may affect some of the ADRs trade on our side of the market.    There are a few Chinese IPOs reporting next few days and we'd keep a close eye on the reaction from those reports.   We'd jump in on some favourable reaction unless the overall market is giving us a reason not to do so.  But, there is no hurry.  Let the action in the stock dictate your course, don't chase to be one of the first in the door.

Ok, there's no fooling ourselves here, we have gone through one of the toughest week that we can remember.    The past week has to be ranked up there as one of the most memorable.    No, it's probably not the week that has seen the biggest drop nor it is the week that has the most negative news.     It is, however, one of the most psychologically devastating week for traders, in our opinion.     Yes, big or small, most traders we know have taken some hits last week.   

What was a most devastating week wasn't the fact financials kept on finding newer bottom every hour.   It was the fact that most of the stocks which we considered as safe heaven were taken down hard, and in a matter of 3 days worth of trading.    There was a time we thought by staying in some of the growth oriented technology stocks and alike would carry us through this financial crisis, but as we noted before Thursday's open, CSCO might be the straw to break the group carrying the market.    Well, how's 10 to 20 percent haircut from the likes of AAPL GOOG BIDU RIMM... sound to you?     What is ironic about this action is that the market leaders were taken down at the same time where there's an apparent reversal in some of the financial stocks.     Toward the end of the week, there's an apparent feeling of end of the world is coming for this market.  The fear mongers are busy.  There is thinking that now it's apparent that the financial crisis is going to last longer than anticipated, and also the market leaders from the growth sector are deteriorating technically, what's there left to do other than bailing everything out?   So many traders did just that!    Traders have the right to be emotional and act accordingly.   Most of us don't have the luxury of owning a fancy black box that does all the trading for us.    We do things based on what we feel others would do and try to jump ahead of the pack.   If everyone is doing the exact same thing out there, there's simply no out thinking them and you just better hope you get out before the real rush has started.

We all took some losses!  Now lets move on with our lives...

What is next then?   Some of us are hoping that market can tank another 10 to 20 percent so we can get into some of the plays cheaper.   The question is, do we really want that and more importantly will it happen that way?    We are sure at the end of the trading on Friday, most of us will feel it's not just a matter of question of if but when.     Ok, so be it that way.     Wait a minute here, that just sounded too simple right?   Here are  few facts we have to consider here.     First of all, we have quite a few companies here that are enjoying some tremendous growth with their business and earnings, still.    Unless we can see a recession on the way which can definitely hamper the growth of some of these companies, only then we should really start to worry.   At this point, it's still a big if.   Second, we are begging to see some of the financials stocks to act in a "bottom is near" kind of way toward the last couple of days of trading last week.    This may not mean much but it's definitely a start.   Third, the coming quarter, both in terms of historical trading and business perspective, have always been strong for this market.   We simply just can not ignore this important statistics and write it off.    Fourth, market doesn't go straight down.    We think as emotional as it was, it will take more than what we have to take us down much further.    So, a rebound scenario is much likely in the works sooner than later.

The bottom line, we just can't write this market off, yet.   We may have some more shaky movement in the coming days if not weeks but once dust settles, we have to be right there to clean it up.     What we mean is that we'd be right there to clean up opportunities when they present themselves to us.   Many of the recent Chinese IPOs are releasing earning(many for the first time) in the coming week or two.   We have to keep an eye on those and to see how investors react to their reports.    It's irrelevant how "good' the report is but we'd have to pay attention to the reaction.  Best not to chase now as we pointed out last week.   We have many plays that are either broken or severely damaged technically.    We aren't removing them from our watchlist yet, but we'll treat them like fresh plays starting this week.    Right now, we should not be attached, either emotionally or in terms of capital to some of our favourite past plays.   If market rebounds, we have to be indiscriminate about our selection and play those based on what we see, not what we feel.

We are looking forward to trading next week, the bull will have some fight in it.

.."There is a limit to everyone's endurance and everyone has a breaking point.  After literally trying to carry the market on its back, you have to wonder if the techs have had enough now.    Exhaustion might be here...".    Oh Boy...was it ever!  All you have to do is look at the highs to lows numbers yesterday.   AAPL,20pts...BIDU...50pts...GOOG 58pts....ISRG 29pts...SPWR 28pts and then add just about everything else with a pulse on the NASD and you have a minus 100pt lunch.  There is nothing left for the market to do when the DJIA is down 220, add on the 360 day before, the SPX down another 25 and NASD 100 decline but to do a 'customary bounce' off a very oversold short term meltdown.  It was very technical on the SPX especially as it hit a FIB level of much interest.   We're glad a bounce occurred, but let's put it into perspective and that it was led by the Financials, the biggest problem out there.   A bottom in the financials?.  Maybe hard to believe it is...we don't know what we'll wake up to the next morning in regards to the subprime crunch at this point and Bernanke didn't exactly give much hope to everything else.    The problems didn't go away all of a sudden after lunch and the DJIA is still down around 400pts the last few days even if you take in the reversal.  Actually the close was nothing great either as stocks like GS sold off 4-5 pts into the close.    Simply,  our very cautious stance as of yesterday in premkt remains.  Our confidence was not built up by the reversal.    We also have the weekend ahead of us and we simply don't see a rush of people wanting to go long into the weekend.   Why get step in front of a potential weekend train that could unravel things again come Monday morning.   A nervousness of doing such might prevail, we'll most likely sit on our hands.   What's the hurry now to get back in the market, especially if you've been long recently?.  As we noted yesterday, look for possible pockets of strength and in the 1st half of the day the names noted FSLR, SPWR, JASO provided such, but at this point if you held through yesterday without taking some profits...we can only ask why?.  Why do you need to stress as the markets begin to tank.   Anyways, this group is feeding of each others earnings, which is good to see.   But, the possibility exists because of this piggyback action that when another reports great it could be priced in already.   Sometimes these are best to sell into early if exuberance is shown on small volume.   When the market reaches a boiling point as it did on the NASD yesterday, following up to the Financial stock slaughter, we throw out any preconceived notion we have a long term hold of anything.   Before things get any worse, we throw everything out including the kitchen sink.   We prefer to start fresh, we can always pick up anything we like long term again, most likely not too far off the price we sold at....but only after we see some of these stocks closing well and into the green.

..or is it really the last straw that broke the ' donkeys' back?.  Cause that's what this market is!...A wobbly donkey!.    We'll know soon enough, but this report/ outlook was not one that was expected and wanted.   This was not the 'water' the donkey/camel was in much dire need of yesterday after being pummeled by more of the subprime storm during the day.  This time from Morgan Stanley/AIG.. Of course, the USD played a big part too as did the talk of the Chinese putting their foreign exchange reserve into euros.  Hell, you got Brazilian models asking to be paid in Euros now.lol..who's..what's next in regards to the USD fallout.  Some intervention is needed here.  After loading up the markets back with all these subprime issues since summer, we've been able to still move thanks to the big techs earnings reports...RIMM, GOOG, AAPL, MSFT.  Now what might be a inconsequential seemingly in the grand scope of things, CSCO not giving a glowing outlook might cloud us even more.   There is a limit to everyone's endurance and everyone has a breaking point.  After literally trying to carry the market on its back, you have to wonder if the techs have had enough now.    Exhaustion might be here.    A breaking point might be reached, it is damn close with us.   What we said in the weekend chart note is we don't want a close under 1500SPX/ 13500 DJIA, well we got that as the market broke down these levels hard.  We are in a very cautious stance as seemingly nothing now can stimulate the market.   We will get the customary bounce very soon, but we'd look for that as an opportunity for the investor/ trader to sell some into and catch their breath.   Be selective if buying and go in smaller sizes.  Look for pockets of strength (eg. solars still?) and earning reports should still provide opportunities in individual stocks...eg...MA, we'd just not fall in love with too many of them and take profits sooner. 

When the subprime winds started to blow this summer, we suggested a potential switch into more Chinese and Russian (of the BRIC) stocks as this might be looked as a possible way out of what we were seeing and getting in US stocks.  This worked!.  The same concept might develop now if the techs can no longer carry the market and traders money looks elsewhere to park.  Considering all the new Chinese issues have been taken apart since the crazy run recently,  we'd not be surprised if the hedgies turn their attention on this group soon again to make some money off momentum.   Maybe it's just wishful thinking on our part, but if these guys are not meeting their goals again , they might as before and run these from the lows this time around.  It would be easy.  In the meantime, we still have the solars booming and today many names familar to DJIM, SPWR JASO etc.should benefit from darling.. FSLR report yesterday. 

earnings of $0.49 per share, excluding non-recurring items, .29c better than the Reuters Estimates consensus of $0.20; revenues rose 289.7% year/year to $159 mln vs the $120.7 mln consensus .See $480-485 mln, consensus is $412 mln, expect total production output of 200MW; planned start up costs are at the lower end of previous guidance range of $18-20 mln; 24-25% operating margin; taxrate for Q4 is 29-30%; CapEx for 2007 is $280 mln... Epcect $760-800 mln in revs in 2008, consensus is $699 mln; 1H08 revs will decline sequentially over Q4 in 2007 due to contractual price decline and foreign exchange rates;

YTEC also reported and looks good sequentially most importantly....beats by $0.06; gives outlook Reports Q3 (Sept) earnings of $0.18 per share, ex-items, 0.06 better than the Reuters Estimates consensus of $0.12. Revenues rose 44.0% sequentially, net income up 39% seq. and 51% YOY.   Co gives outlook saying, "We see Chinese banks continue to invest in IT infrastructure in order to further improve their operational efficiency and profitability, especially in our core service areas such as electronic customer service channels like web- banking and call centers, and risk management/performance solutions. We also see that small to medium sized banks are becoming more aggressive in IT investment as they prepare for public listing and increase their competitiveness in the industry. Since the acquisition of Easycon that was completed last quarter, we see great opportunity to penetrating this niche market, and we will expect greater contribution to our revenue and profit from the small and medium sized banks.

What is really funny about this market is that while a couple of big names that kept on going down every day, we have some names that are going the total opposite direction, which is up.   The Citi news may have very well kick started this week, but all the focus now is on Cisco's earning tomorrow night.  As oil price keeps going higher, so too are the names from solar sector.   This is really the kind of market where you are either in a lot of pain or a lot of joy.    What makes it tough though, however, is to maintain a balanced portfolio where you try to speculate on which sectors would move next.   As we have witnessed, many of the Asian names have been under pressure the last few days while some of the more expensive names on our watchlist  kept us in the game.       

First, the good ones...

FSLR/SPWR/GOOG/MA/BIDU/AAPL/RIMM,  basically, had we been trading nothing but the expensive tickers ($100+), we literally would've been making a killing in this market.    These aren't the names we are unfamiliar with.   In fact, pretty much all of these names are positions in our portfolio at one time or another.    You can say that these are some of the obvious leaders in the market and those are the ones we ought to be owning if we believe this market is going higher.   The point it, we gotta have some of these names in our portfolio.   We may not afford all of them with big sizes but these are the ones that are carrying this market higher.

Solars, JASO TSL SPWR FSLR ASTI, every time dollar gets dumped, and oil gets bid up, and then these guys zoom another 10% it seems.    Some of these names are releasing earnings next few days so we'd have a pretty good picture how traders would react to their report given the current valuation.

AIXG, a somewhat new name to these parts is this German ADR semiconductor/equipment maker bought up early in the morning after earning. It's 9mth eps.17c vs. (0.03), while revenues jumped nearly 50%.  This co' is thriving on the demand for LED units which is in a strong secular growth mode.  The order intake Q# and the resulting backlog was very good here.  In the last 3 Q it's order intake has gone from 40 to 50 to 70mln euros resulting the co' largest ever order backlog.   This stock trades overseas as well and takes it's open gap cue from its action over there.

GHM/DXPE, these two are couple of the recent earning plays that are being bid up quietly.   We definitely don't want to ignore these as they can creep 10% on a weekly basis.

Now the nervous ones...

STV/LFT/CISG/GA,  all these have one thing in common and they are recent Chinese IPOs.    Aren't we supposed to be up 25% by now by holding these?   Right now, we are as puzzled as many others as to why all of these names aren't getting any momentum to the upside.    It feels like in  20 more trading day, there won't be anything left in these stocks;).     At this point, we simply have to play the statistics and probability game.    Any of these would be considered longer term plays and we just have to play that way accordingly.    The quiet period is going to end soon enough for some of these names and earnings are coming up as well.    We are looking forward to those events as they can be the kind of positive catalyst that can drive these stocks.    The bottom line, these plays are still at the beginning.

Simply, you cannot hold one or a few of these IPO's, 'nervous ones' without balancing out your book by trading/ holding the 'good ones'.  That is missed opportunities day after day.