Thursday, December 3, 2009


It's been a while since I actually looked at charts to see the state of things. I see some nice tradeable issues long and short. The following are all in a stock list of mine that all show great fundamental numbers, stocks I will watch and consider long positions in for great gains if they set up right for me. I recall the last time I did this I posted my ideas in a free chatroom I frequent (click title to go there). One of the ideas I felt strongest about at that time was PLX was a short though risky. It has since come down about 40%, that is mad money! The main thing I saw at the time was how extended it was above the 200 day average and even the 50 day average. At times these things are a lot like rubber bands that get stretched too far. No matter how much enthusiasm or energy there is to push things along, eventually there has to be a return to neutral-I think some folks call this a mean reversion.

So my big picks shorty wise, similar to the above are: CAAS and TSTC. MELI perhaps in a bit.

Longs to watch for:
CGA BPI watch the group TNDM logical but risky LIFE watch for emrbryo/stemcell interest to perk this EJ on a 50 day recovery play CPTS-great #s, maybe bottom of cup AMSC for flat base emergence XOMA puzzles but interests me CYOU has nice volume dryup


  1. So you want to make 3 million dollars by shorting momentum stocking that are taking off on high volume? Good luck.

  2. I've not moved in and out of the market as fast as I used to, tend to hold longer, trade in the direction of the major trend. Shorting in a bull market is counter trend and therefore riskier. To be a successful active trader one ought to have many ways to play, if the market were to break down those look like good candidates to be aware of. If a momo stock gets overextended and starts to pull in, late emotional buyers will have their hands forced making the collapse faster allowing fast easy profits. Look at PLX charts and the charts mentioned, follow them if you wish, trade what happens.