Not long ago, upon a brief discussion of a prospective RIMM set-up, I overheard a trader say “Oh, I am not going to do that; I cannot trade RIMM.” Well, why? Let me back up a step. I constantly maintain that I am not good at trading stocks that cannot move at least 20 cents easily. I reached this conclusion after studying 22,000 trades I’d made and noting that I tended to be impatient overall in stocks so if a particular stock is not moving, I tend to exit relatively quickly and lose time and again as the data clearly showed me. Thus, I spent countless hours coming to a conclusion as far as a subsector of a section of stocks I don’t trade. With that in mind, I never dismiss a trade off-hand without at least looking at the set-up. Yes, I will dismiss it if I don’t see the potential to make a quick profit of at least 20 cents per share, but only after at least glancing at it. To simply ignore a call is folly and poisonous mentally because it shows lack of self-confidence. Thus, whenever anybody says anything, never dismiss it out of hand because you just never know if it can be the best trade set-up there is all day long. One trade has absolutely nothing to do with another in a particular stock and every situation is different.
Markets overnight were hit fairly hard in Asia as the yen continues to strengthen. The Nikkei closed down 1% with the Hang Seng down 1.5%. In Europe, prices are hanging around unchanged across the board. Oil is down slightly, gold is up slightly, and the dollar is moderately weaker against the euro. Look for a very very quiet day pending the dollar-euro mechanism as the markets consolidate yesterday’s gains ahead of the holiday. Trade only the optimal set-ups so the day will be a tale of frustration and losing money.
Watch list:
11242009Eriklist.zip
Reiterating-Please understand that if the ideas do not get to the hoped for set-ups cited below, more often than not, one should not blindly trade the symbol next to said idea. If the whole story is not there -If something is good, assume either a short thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified.If something is bad, assume either a buy thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified- Good- The following stocks have good news and/or a strong technical pattern
ADI- decent earnings
NUAN- decent earnings
CTRN- decent earnings
GNV- closed near a high
SEED- closed near a high after receiving approval from the China Ministry of Agriculture to officially introduce genetically modified phytase corn to the Chinese marketplace
ABIO- announced complete response letter from the FDA for a new drug application for Gencaro
AAPL- among big cap tech stocks closing near their highs
CI- closed near a high after being upgraded at JP Morgan
WHR, NAT, AMZN- mentioned positively on “Mad Money” last night
DSW- good earnings
MDT- good earnings
HRL- decent earnings
HNZ- decent earnings
AEO- decent earnings
DLTR- decent earnings
Bad-The following stocks have bad news and/or a weak technical patter
HPQ- issued in-line earnings
AMD- notes offering
PEET- closed near a low after announcing raised offer for DDRX
CIEN- closed near a low after announcing acquisition of some assets from Nortel
DY- poor earnings
GFA- poor earnings
BKS- poor earnings
Earnings:
TUES NOV 24 BEFORE
AEO BKS DLTR
DSW EV HNZ
HRL MDT WBD
TUES NOV 24 AFTER
BCSI CWTR JCG
TIVO
Good luck today.
Epiphany Trading, LLC
www.epiphanytrading.com
Erik R. Kolodny- Chief Markets Strategist
Brendan P. Byrne- President
Joseph R. McCandless- Managing Partner
D. Timothy Seaquist- Managing Partner
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