Wednesday's Wrap

I had a busy day - I was out most of it but I was able to take two trades this morning before I left – CTXS on a 15-minute crossover with a confirmation and CRVL on a buck 43 gap down. Let’s address CTXS first – I’ve talked about the crossover several times this week and I think you all know what it looks like by now. But in case you forgot here is a picture – worth a thousand words – for me it was worth a thousand bucks – well, 763 actually but that isn’t too bad all things considered equal.



You can see how the second 15-minute bar transects the three averages and the third bar confirms. I've been watching CTXS on various time periods and it looks like it is setting up for a long term run. Here is how it looks today on the weekly charts.



Now remember we need to finish out this week with a green/white body and have a confirmation either next week or the following week before we can safely take this one. I know - it takes the patience of a Saint but that's the best way to play the intermediate or swing game - with patience and careful selections.

Now we’ll talk about CRVL – this stock is a day trader’s wet dream – lots of action, much up and down but mostly up. I’ve been watching this stock for a couple of months – actually ever since I first read about it over on the Goddess’ site. Subsequently I figured it out – it often opens on a gap down and then claws its way back to the surface – a buck and a quarter to a buck and a half is about the daily range. So when I saw it at minus a buck and change this morning I said gimme some no need for a set-up. In at 42.31 out at 43.60 and thank you Ms. Goddess for the tip (She plays it for a lonnnng tiiiime – I day trade it – who’s right? who’s wrong? who cares? – Truth – she’s right because she caught it on a dip and has ridden it long and well since. – Truth - I am because I’ve made taksan okani* off the little beast and its’ hordes of day trading demons and I plan to keep on keepin’ on). Remember these thinly traded stocks only work when there is day trading action and I told you yesterday how to put your limit between the bid and the ask because any semblance between those two and reality is purely coincidental.

Fact is I make more money on these weak start days than on any others. I don’t know why that is but had I been home all day I would’ve played HANS and GM and any number of other boomers. Even Glass (GLW) took the blue pill this afternoon. Looks like it might have taken the whole bottle.

Of course at the end of the day SYMC (my swing trade) is down 11 cents with the Naz up 15 skins. But I said I’d play it through Friday and if it doesn’t show me some real love by then – goodbye SYMC. (I long ago stopped using it on my box having found far better products for far better prices (mostly free)). My few shares of DHI managed to lose 6 cents today. I think that's a good sign because it appears to have been sold out and now everyone is waiting for a reason to buy it. Me too. I have my target in mind and if it breaks the target I'll buy back my shares. Meanwhile the money is being put to good use in scalping CRVL and day trading stocks like CTXS.

Meanwhile the up/down ratio actually lost ground today to 42% which is good and the new 20 day high/low ratio only obtained 40% and that's OK too. The VIX remains neutral but all 4 majors and GS finished the last hour bright and white and that could mean some trouble for tomorrow. I'm putting it all together and saying another up day tomorrow.

The magic coin says ... heads - bull market tomorrow - well we're either both going to be right or both be wrong.

Marlyn is now 2 and 1 and coin is 1 and 2. But it's early in the season folks - don't go away.

* "taksan okani" is Japanese for a great amount of money and is probably the only Japanese I remember from a youth spent exploring the temples and ... oh Bull - runnin' the allies staying one step ahead of the MP's. A very checkered life has led this Marlyn person - indeed.