Stocks to Watch 1.26.11. “Merlin the Market Magician”
Magic- Producing a desired effect or result through the use of incantation illusions or various other techniques that presumably assure human control of supernatural agencies or the forces of nature. Sounds like the DOW. The bears came out of hibernation Tuesday just to have there snouts shoved back in the den during the last 15 minutes of trading. Word on the street is Merlin the Market Magician fat fingered a huge order on IBM causing a 40 point DOW move. Whatever!
I know this market is overbought big time but I also know that newbie and/or overaggressive shorts who try and top tick a bullish market tend to get butchered. Don’t be the idiot who thinks they can figure out that exact moment because no one can. Just when you think she’s down for the count she’ll pull some slight of hand illusion on you and steal the money right from your wallet while your looking her in the eye. I know somebody on Twitter will claim to have “called it” after the fact and if you want to know how they did it it will cost you $xxx pr month. In reality -70 points is not enough to shake out the perma bulls. Wait for the market to CLOSE below it’s 20 day moving average or wait for 2 plus days of 80 pt drops. However, at these lofty levels move some of your laggard positions to cash and remain nimble. Don’t let Merlin pick pocket you.
Watchlist: YRCW PSTI FMCC OCCF CAVO TUES
Scanners: CWST GRM
Previous watchers still in play: MGIC HILL EEE USAT CLDA
YRCW
Nice breakout buy signal at 4.11. I missed it but I’m stoked a few members in chat hit this up for some cash. Still plenty of upside on these truckers. Possible correlation plays with ODFL JBHT.
PSTI
Another one I misses but some members got in on it so that’s good by me. This thing ran all day but now I’m wondering how much more upside is in it. See if it gaps up and holds or opens weak. More interested in shorting than buying this late in the cycle.
FMCC
I’ve played this in the past and I know it’s a runner. I didn’t miss this one and it was a good win for me. I’m not sure how much upside is left but we’ll watch the action. This will be a short eventually as well.
OCCF
Stock is ripping after earnings. The earnings were not that good but the street seems to like it. As you know earnings plays can run for days. Try to find the dips to buy in and don’t get greedy on the spikes because it won’t last.
CAVO
Are hydro tunnels the new rare earths. Probably not but this thing has got momentum. It gave up a lot from the intra day highs but should have a play in it Wednesday. If it can attack $3 there should be a good breakout long. If it never makes it there it’s done.
TUES
Another earnings play. I don’t know how these companies lower guidance and the stock takes off. We’ll see if it can go some tomorrow.
CWST
GRM
