Wrapping Tuesday

It was a down day - well for most of the day anyway. The few points off the DOW INDU is nothing to be concerned with - although the bobbleheads on bubblevision will probably try to make it a crisis. Nothing goes down during 401K week. Next week - different story.

You'll have to look it up - but two days after I sell my AKS holdings it pops on a takeover report. It looks valid but you never know. I managed to get a little back (I said I'd buy it over $32) although I missed most of today's move. However, if the report is factual and 40 dollars is the bid then we should see some additional movement over the next couple of weeks.

Still holding AV, GGB, and BGG. I sold about a third of my AV for a small loss and had I held it to close of business it would have been a small profit - but I have no patience for crappy stocks. Even though it went up yesterday it is just bouncing around with no apparent trend in sight. I hate cheap stocks. Speaking of which (cheap stocks) good old CMGI took off for parts unknown (at least not since 1999) today.

BGG is becoming my new darling - I keep looking for a pullback so I can buy more but it won't so I won't. I bought that off a cross over and it has paid super dividends since. The more I look at the cross over stocks the more I like them.


The cross over is on 05/01. This is a simple enough method - just wait for a stock to open below the three primary EMA (4, 8 and 21) and close above them and take a position. Put your stop (physical or mental) below the open. It works on every time frame from minutes to months.

CMGI could have been a cross over play too -


I've published a lot of cross over charts and will put some more up later - a couple of good ones.

The three amigos had a mixed day - AAPL went up a buck and change, GOOG went down change and MSFT made 4 cents for its loyal followers. You have to be so in love with Bill Gates that you'd be willing to have his baby in order to justify your love of this stock. Why did AAPL go up today? Nobody knows including AAPL.

KNOT broke out today - why does that figure - market goes up strong - KNOT drops - market has so so day - KNOT goes up. Not enough for a cross over but enough to keep an eye on.

There is another play which is the non-cross over - this is when a stock just kind of drifts up through its averages but never with a strong up thrust. Watch out for this kind of stock because generally (again a weasel word) they just go sideways from there. They are flattening out and that is never a good situation - at least not for either a swing or day trade.

The model portfolio went up .15 to 17.79% and the benchmark lost .07 to 7.44%.

The INDU ATR is down a bit more to 85.62 - remember 80 is the key - a break of 80 low and we should get a pull back in the averages in the next couple of days.

The VIX remains neutral which is its favorite configuration and the up/down ratio printed a 40% which is also on the edge of neutral and this indicator is also neutral -

But I will say this - the last time it was like this (7 months ago) the market went down for a couple of days before it resumed its every climbing ways.

Bottom line? I don't have a clue - I think we get a good day tomorrow and then a bit of weakness through the rest of the week and maybe through the rest of the month.

The coin says heads ... calling for an up day tomorrow.

Monday was another mixed day tie so the score is now Marlyn 30 - 29 and 13 and the coin is 34 - 25 and 13.

Friday - Looking Down-ish

Pre-market the futures are down, Europe is down but coming back, Asia finished up but much like the U.S. market - i.e. low noise level.

The Yen is drifting down - I did want to show you however how you can use the RSI(2) on Yen hourly charts above 95 you short, below 5 you go long - how hard is this?


Do you think I should start my own infomercial and sell training on how to play FOREX? Thanks, but no thanks - I know how difficult it really is. Looks like it is setting up a FOREX BOB right now too.

I did want to mention that the Euro has returned to where it was before the announcement (in relation to the buck) but the Cable is still refusing to acknowledge the fact that there wasn't any fire and it didn't have to really rush out of the house with no pants on ... As I said yesterday - the older currencies are sloooow.

But that's not why we're here right now - right now I want to tell you about this amazing stock - it is a story stock with an idea behind it and best of all it is cheeep! - as in bird seed cheap - and I'm talking about, what else, good old CMGI - OMG - it's back!

After the post the other day in which I heaped scorn and ridicule on radio stock touts who aren't named Jimmy Crack Corn Pone and spoke about CMGI in less than glowing terms - I have now seen at least one more article about it and not only that but it is in the top 10 of European acquisitions overnight. What in the name of all that is holy is going on here?



You can't help but notice how it more or less skipped the Bernake-fest and then caught up again yesterday.

Now I'm not saying that this is a good thing or a bad thing - you know how I love these little cheesy pieces of crap with all my heart and soul but I think I have to put a few shares in the account and close my eyes and forget they're there. Who knows maybe it goes back up to 160 again - yeah, right - more than likely it goes back to 1.60 again.

SBUX and CMGI

No sooner do I say keep an eye on SBUX than Notable Calls reports that they are having their annual meeting today. This might engender some interest in the shares during the session.

In the same Notable Calls article there is some talk about CMGI. This was a real MoMo stock in the roaring 90's. It peaked in Jan '00 at 160 and went down for the next 2 years to cents. And it was being purchased the entire way because it took it two years to get to cents. I remember this one (never owned it directly probably owned it through one or more mutual funds but who didn't in those days) because I was listening to a radio program - one of those call in shows about the stock market that were so popular back then and this was probably about April '00 or so - the stock was about 60 then. Anyway someone called in and that person was in a panic over the fact that they owned so many thousand of shares of CMGI bought on the say so of this host at 120 or so going up. And then they didn't sell on the way down because all of these hot shots kept saying "stay the course" - hmmm, that sounds familiar. "Where'd the money go," the person asked, in tears. "Just gone," said the host, "just gone." The person tried to argue but the host just kept repeating, "Nope, just gone." There was some real sadness in his voice. He was gone too in the next week and the station changed formats shortly thereafter. I think they're in the religion business now. I don't know how many of these early Jimmy Crack Corn's were sued but all of them should have been taken out and hung.

Anyway - somebody is buying CMGI. It is a day traders favorite - lots and lots and lots of shares and 2 and 3 cent runs all day long - 27 cent ATR on the weekly basis so you can't get too hurt even if you have 10 or 20 thousand or more shares. But somebody big is buying - it has had two months of increasing volume and increasing price. So either somebody knows something or nobody knows nothing but it looks like a spec play if you play it at all.