Monday Monday

Bought WIT and CRI - sold WLT and SYNA - the latter two I sold for not doing anything other than moving sideways. Sold TTI - earnings are coming Wednesday and I really liked the pop I got this morning. I'm in WIT off the RSI 2 filter and CRI because it looks like it might go up a few cents before noon.

I'm 19 cents away from breakeven on LQDT and 19 cents away from stop loss on LQDT - every time it hits 19.30 a bunch of sell orders hits the wire and it can't get by that spot.

These are the days I hate the most - market explodes up in the first five minutes comes back and then sits.

Well I can sit too.

Update - And of course as soon as I sell WLT it takes off for parts unknown. I knew it would I just had to sell it in order to induce it to move.

Wrapping Friday

Excellent day - I was hoping for yet another down day and we got it. This should be it for awhile - the INDU dropped through the 21 and then came back up to sit on it - that's generally a good sign.



I'm still holding LQDT, about 21 cents down, SYNA, about 51 cents down (4 cents higher than my planned stop - if it opens down on Monday it's gone), TLB, I'll talk about this one later, TTI, today's success story, and WLT, 19 cents down.

I lost TLB to a stop early this morning but I reacquired using the 4-minute charts and tweezer bottoms - see if you can guess the four places where I reacquired this stock from this chart -



This chart is from Quote Tracker and I set up a filter that watches in real time for tweezer bottoms on the 4-minute charts. Tweezer bottoms are very efficient on the low frequency charts and I bought it each time the arrow popped up on the screen.

The three Amigos, AAPL, GOOG, and Mr. Softy dropped today and that is a good sign too. The market is desperately in need of a blow-off to get the pressure out and provide some buying opportunity. The last several days have provided that.

Bubblevision was talking about a 5 to 10% correction and you know that I don't even think in those terms - I believe that I showed you in my recession post that this market was turning up and it has a long way to go yet before we get to a 5 to 10% correction (he says - I'll probably eat those words on Monday evening but I feel good about it right now).

This indicator suggests that we have gone down far enough and will be turning around fairly soon.



And the up/down indicator says 41% which is lower than yesterday (yesterday's post contained a typo on this indicator - it actually was 49% and I typed 40%). That drop is significant even if the VIX remains neutral - stupid VIX. The best indicator - the last hour of the indices are all black/red and that is always a bullish indicator. The INDU ATR remains above 80 at 83 and change so put it all together and Monday - we are going up.

The coin says --- we are going down - well - it's a race.

Marlyn wins this leg and the score is Marlyn 15 - 10 and 5 and the coin is 11 - 14 and 5. I'm doing a lot better than luck now - and that's pretty good.

Thursday Wraps

Well I did it - I took a day off and didn't miss it. I said in my post this morning that I had bought SYNA, WLT, LQDT and sold half of my TLB. Of these LQDT was in the money all day and the other three just drifted. Some action late took them all up to near where they were purchased with WLT poking above break even.

I said if the market was going to be down I would buy them at the close but I didn't know at the time if I were going to be here for the close so I bought them early.

What a day - AAPL finished up 30 cents, GOOG finished where it started and MSFT made all of its millions upon millions of happy owners - 3 cents. Once again tech was up with the semis (I know - I pronounced them DOA a week ago or so) leading the way. Somehow none of that makes sense nor does it fit with the news reports regarding the glut in semis. But if the three Amigos couldn't make a score today I'm telling you something is rotten in this story and we haven't heard the end of it yet.

Of course I forecast a down day today because the various indicators that I look at pointed in that direction. And for tomorrow - I think we have one more down day into the weekend. We just aren't set yet and most of the indicators remain neutral or bearish.

The up/down ratio is close at 40% but the VIX remains neutral. The INDU ATR is at 86 which suggests that it is coming time for the market to turn. But the NewMoMo indicator hasn't broken below -.005% yet and that will be the real deal when it does. That's the direction of the momentum so one more day should do it.



Meanwhile the coin says ... heads - bull market coming tomorrow - stay tuned.

Despite the fact that tech went up the broader market went down so I'm calling it a down day - too many ties lately.

So we both got it and the score is Marlyn 14 - 10 and 5 and the coin is 11 - 13 and 5.

Two Fer Thursday

I'm going to take introductory positions in WLT and SYNA today - and depending on the mode of the market at 10 A.M. I'll take the position either this morning or at COB. By that I mean if the market (SPY) is going up at 10 I'll buy then if not I'll wait till close. This helps get a better price on the day of purchase.

Why WLT and SYNA? They popped out of my "three month low" filter (which is still bring home winners) and I had enough time this morning to do some due dilligence - at least Marlyn style. As you know I'm not that interested in what they do only how well they do it and apparently both these companies are in good hands management-wise. Institutional holdings are in the 90's so there is a low supply and both companies are distressed and coming off the bottom.

Here is SYNA



And WLT



WLT insiders are buying with both hands but SYNA is kind of a mixed bag - the institutions are buying but some of the insiders are selling. I'm not too concerned with that for the moment.

I'm targeting SYNA for 1.25 up or .65 down (1 ATR). After it hits the 1.25 up that will be the new stop and I'll take it day by day after that. WLT's target is 2.00 up or .87 down (1 ATR).

As you know I am a proponent of pivot points and I have learned to use the pivot point method as kind of a moving average. Using that method I produce these kinds of charts -



This is WLT and what you do is fairly simple - when the red line crosses the blue line you buy. The method is a bit slow - in other words the move is under way when the cross occurs but I like that because it reduces the number of switchbacks. As you can see in this example sometimes the red line sits on the blue for awhile and sometimes it just takes off. I prefer it when it just takes off - naturally.

Again this is not an invitation to invest in any stock, bond, mutual fund, or your Aunt Nellie's latest get-rich-quick scheme involving alligators and barbecue sauce (although you might stand a better chance with Auntie than with the "uncles" down in the pits - wink wink).

Breakouts - 2.5

It's actually 3 but the last two posts were both titled the same so I'll make this one 2.5 and the next one will be 3.

Now that you are totally confused here are some more breakouts from the ascending triangle formation. SYNA, CBG, TJX, NWSA. Those are the best 4 (of 7) and I will tell you that I don't like NWSA(NWS) which was number 1 so I put at number 4.

I just read about SYNA last night as one of the top favored (by funds) small cap complanies per Morningstar. And it actually doesn't have a bad looking chart except for the fact that the last time it got up here (32 and change) it collapsed. CBG has been humming along lately putting up new 52-week highs day after day. But it just broke out of a range-bound 32-34 area. TJX is also exploring new 52-week high territory, has been up here (29.5) before and collapsed. The only other thing I'll tell you is that SYNA has an earnings announcement coming on Jan 25th and their current historical to implied volatility numbers are 20 to 45. That 25 point variance means the market is expecing something in the future and that there will be some movement in this stock (I don't know how much) but it will be up or down - Gee - how helpful.

Do your own DD - and I really don't expect to be doing this every day - but I might convert my program to a weekly and start doing it on the weekends - we'll see.

Also - I hold no interest in any of these stocks and may or may not hold an interest at the end of the day.