Time 9:30

Stocks: CME, NMX, CSIQ, SOL

Shorts: CME, NMX

I don't want to cover these unless we get an alligator buy signal on the 60 min. or the stocks break out above the down trend; otherwise just sit tight. I don't love the way t he market looks so I want to carry some short.

Longs: CSIQ, SOL

Add to these names if we get an alligator buy that holds until 10:30. We must wait until 10:30 so the 60 min. signal is real. Don't want to get faked into a bigger position on the back of the new news but if it is a real game changer these solar stocks will hold the gains at 10:30 and expect them to add to the gains all day.

GDX: Hold this short until we get a buy signal on GDX or CEF. This is a hedge and the until cef looks better I would rather lose some money on GDX than be naked.

Time 9:14

Stocks in the news:


MA MasterCard: Lehman expects sustainable long-term growth; tgt raised to $335 (309.00 ) -Update-
Lehman says the U.S. spend volume has slowed in the first couple of months of the second quarter; however, with international growth and cross-border activity still strong, 2Q08 GDV growth is trending higher overall vs. 1Q08 levels. Longer-term, the consistent shift of cash and checks to plastic payments, cross-border strength, SEPA opportunities, pricing power, and new product initiatives, are all variables that enabled MA to raise its long-term guidance for rev growth and operating margin expansion. Overall, firm expects MA to see consistent EPS growth of 25% or more for many years, which they believe should translate to a consistent forward multiple near 30x, offering a compelling long-term investment opportunity. Firm raises their tgt to $335 from $300.


MA MasterCard: Ongoing shift from cash to cards remains major global growth opportunity; Keybanc raises price tgt to $350 (309.00 )
Keybanc raises their MA tgt $350 from $325 following yesterday's analyst day. Firm says key highlights from the meeting were: 1) continued substantial non-U.S. growth opportunities; 2) signs of progress in Europe arising from the Single European Payments Area (SEPA) initiative; 3) the difficulty of building an alternate payments network; 4) MA's U.S. debit initiative; and 5) room for continued substantial margin improvement. Firm also believes that MA should be able to eventually reach margins in excess of 45%.

CSIQ, SOL:

Solar stocks rally as concerns ease over subsidy cuts - Bloomberg.com
Bloomberg.com reports Q-Cells paced gains among German solar stocks in Frankfurt trading after Deutsche Presse Agentur said proposed cuts in govt subsidies to the industry may be smaller than expected. Q-Cells, the country's largest solar-power co, surged as much as 8.8% to 77.46 euros and traded at 76.06 euros as of midday. Solarworld, Germany's third-biggest solar co, jumped as much as 9.5% to 32.85 euros and was last at 32.23 euros. Phoenix Solar added 8.0% to 47.35 euros. The govt reached an agreement to cut subsidies for the solar-energy industry by as much as 10%, DPA said, citing unidentified people familiar with the matter. Solar stocks slumped this week after an industry association said May 27 that Germany's Christian Democrats and Christian Social Union favored cutting grants by more than 25% over the next two years. (Briefing.com note: Although not specifically named in the report, some solar names include: ESLR, SPWR, JASO, STP, TSL, FSLR, SOL, CSIQ, YGE, ASTI, SOLF, CSUN, LDK, AKNS, EMKR)


Piper Jaffray says to cover your solar shorts
Piper Jaffray notes that according to German news agency DPA, the German Government reached final agreement on feed-in tariff reduction for Solar and Wind at 02.00 AM this morning. The firm says they also understand that the bill will be voted through parliament as early as Friday next week rather than end of June. The firm says the feed-in tariff reduction is said to be 8% for 2009 (previous 9.1%), 8% for 2010 (previous 7%) and 9% for 2011 and onwards (previous 8%). The firm concludes that further changes are highly unlikely and would recommend investors to buy the sector

FUQI:

TIF Tiffany & Co Earnings Conference Call Summary (47.74 ) -Update-
Co achieved a 12% increase in worldwide sales, despite softness in U.S. business. Co says worldwide sales performance in May to date is meeting expectations which consistent with the Q1 pattern reflecting strength in markets throughout Asia Pacific other than Japan and in Europe, more than offsetting softness in U.S. Sales. Co is now assuming that the recovery in U.S. sales might occur a bit later in the year than previously thought... Aggregate U.S. Brand store comp sales declined 4% in the quarter versus a 9% increase last year, and the softness which was not surprising was not contained to any particular region. The single digit sales declines in Florida and in California were not meaningful it different from the overall branch store comp decline. As I mentioned sales to foreign visitors especially from Europe continued to have a markedly positive effect on sales in the New York flagship store. The monthly comp trend ranged from flat in February to a 4% increase in March, to a 3% decline in April. Last year, U.S. Comps rose 13%, 10%, and 14% in February, March, and April respectively... Looking overseas, co experienced a continuation of very strong sales growth in Europe and in most of the Asia Pacific Region which easily offset softness in Japan. Total Asia Pacific sales increased 10% in the quarter and comparable store sales rose 4% versus increases of 9% in total and 2% in comps in last years Q1. Exceptionally strong growth in most countries was partly offset by softness in Japan. European sales were also strong in the quarter with a 12% comp store sales increase on top of an 11% increase last year. London represents a bit more than half of our European sales and every one of stores there delivered strong sales growth in the quarter... Co continues to expect the operating margin to be approximately unchanged from last year, when adjusted for the various one-time items recorded in 2007 and the change in the inventory accounting method. That would include an increase in gross margin but also an increase in the SG&A expense ratio.

Time: 4:05

Trading Technique: The numbers...

We were 3 for 9 today on the A.D. trades. Not what we wanted. The markets rally in the last hour negated most of the good short trades we had on. RL, SNDA, and GENZ were all good trades. Tomorrow I want to watch the KEY type positions for another shot. The A.D. charts on these positions should give us a good chance again in the next couple of days.

Time 1:54

Trading Technique: Refining the rules...

On the D.A. trades we are looking for Alligators created by dramatic shifts in opinion. These shifts can occur but are not limited to the following:

-EPS news
-Analyst days, conferences
-Company changing news e.g. new partnerships, deals, contracts

Analyst upgrades are not considered good enough but I am still studying...

Stocks: KEY,MI,CMA,MTB,TRMK,CTXS,SNDA,RL

KEY,MI,CMA,MTB,TRMK: All are in the same group and all are effected by the terrible EPS news from KEY

CTXS: Analyst day gone awry

SNDA: Bad reaction to EPS

RL: Good reaction to EPS

1/2 of the position was taken in all names at 1:45. If all is going well consider adding to the trades at 2:45- 3:00

Time: 11:18

Trading Technique: Trading daily Alligators

Rules of the Road:

-Identify the big movers on the long and short side in the 1st 2 hours of trading.
-If you can get the ideas in the 1st 1/2 hour than put on the position
-If the idea is discovered later than make a list and check it twice
-Then look to put on the positions between 1:30 and 2:00

We are looking for the follow thru into the close of the Alligator from the morning.

Stocks: Daily Alligators (D.A.)

D.A. long - RL
D.A. short- KEY, MI, TRMK, MTB, CMA, SNDA, GENZ, CTXS

Time 10:35

Stocks: SNDA, GENZ, CTXS

All Major Alligator sell signal on the. Stocks gapped lower and have rallied up at 10:30. Short 1/2 the position now and 1/2 @ 11:30. Cover by the close if not successful. SNDA had a bad EPS reaction. The other two have no fundamental reasons that I can find for the opening weakness. This is a bit of an experiment. I believe we can trade alligators up or down on a daily basis.

Correction: I just read that CTXS had a Cowen conference this morning and the reaction wew are seeing must be related to that.

Time 9:35

Let's start with a shout out to my #1 reader. She has been reading my work my whole life and has been and continues to be a major influence in the way I tackle problems and order my thoughts. Let's have a big hand for, Eileen Rosenthal!!

Trading Technique: Believe, Believe, Believe...

We must believe in the system at all time and not hesitate to execute trades following the rules. This does not mean every trade will be successful, but it does ensure that the body of work over time will prove out.
E.g. We had the sell signal on CEO yesterday, but for reasons outside of the rules I only sold 1/2 of the position. This morning the stock gapped down 4%. We mus thave the strenght to make decisions and the courage to follow through.

Time 9:46

Trading Technique: When a stock is up over 20% here is the exit strategy:

1) Take the profits of the table at the first sell signal on the 60 min. chart which will coincide with a reversal day.

2) Sell half of the remaining position if the stock breaks below the 9 day moving average. Must wait for the last hour of trading because often the 9 day is tested intra-day and holds.

3) Sell the rest if the stock breaks below the 20 day. Again must wait for the last hour to make sure the breach is real.

This method has been designed to allow us to try and hold on to some of our biggest winners for a longer period. As we have read in the Market Wizards books and as we have been taught by Oneil holding the strongest stocks for huge % gains is the true way to significantly increasing wealth. After extensive research Oneil discovered that the biggest winners developed from positions that went up 20%+ in the first 2 weeks of their respective breakouts.

Stocks: SOL, CSIQ

Both of these stocks fit the criteria of the potential big winner category. Both were up over 20% from their breakouts in the first 2 weeks. So now we must follow our new rules no matter how painful it my be. this is a new process, so until we get use to it expect to feel some anxiety. However, if we can master this sell discipline we are one step closer to trading domination!

Time 3:36

Trading Technique: REMINDER...

Always hedge when the opportunity is there to protect the portfolio. Get out of the habit of worrying about whether the hedge will go against you. We hope the hedge will go agains us because that means we are making money on the rest of the portfolio. If the hedge is right then we protect our profits and we are able to make sound decisions on the rest of the portfolio. This is so important to master. Keep working at owning this discipline.

Time 4:48

Trading Technique: Hedging...

Rules:

-If the market has a strong week and closes Thursday and Friday strong and then has a strong (defined by up 1%+) Monday morning, then we will put on a market hedge by 11:30. The theory is that we don't need to be greedy. All that strength needs to be consolidated or shaken. We want to protect our positions from the inevitable shake out of the market. Even if the market goes up another 1% chances are the rest of the portfolio will go up more than the hedge will suffer.

-If our portfolio is up over 3% in the 1st 2 hours of trading then we will look for an appropriate hedge. Chances are the portfolio will pullback at the very least during the 12 to 2 time period and at most a reversal could occur.

Market Commentary: China...

Chinese stocks are blowing out EPS numbers vs estimates on a broad front. Companies in diverse industries like, steel, medical, alt energy, energy, internet, software, and gaiming are all showing blow out EPS and Rev. We need to keep focusing on this space, trusting the charts and riding the wave right into the olympics. My guess is that the end of this rally won't occur until the torch is in Bejing.

Time 3:09

Trading Technique: Sell Discipline

When we own a stock that is up over 20% here is the basic exit strategy:

- In the event of a reversal day e.g. Doji stone, sell enough to get the gains off the table, leaving only the original position size.
- If the stock breaks below the 9 day moving average then sell 1/2 of the shares left in the position
- If the stock breaks below the 20 day sell the rest

Stock: CSIQ

The stock could be setting up a Doji stone anf the DMI is giving the 1st warning signal. Of course the 1st warning of the DMI is not very reliable on a stock that is up huge in a short period of time.

Time 2:10

Stock: FSLR

The stock has not moved aggressively higher boff of its Alli. buy signal. Now we have a very distinct sell signal on the 60 min.. This stock was trying to breakout from a high late stage base so this early sell signal must be respected.

Time 9:54

Stocks: YGE, PWRD

YGE: I don't want to buy this stock. 60 min. is good but the daily is not in sync and there is no need to add to this group unless there is a perfect chart.

PWRD: EPS seems good but the stock is down 8%. The rule to follow is to sell the stock at 10:00 if it is not recovering and buy it back if it reverses during the day and goes positive. This is a variation on the original theory which deals with a stock that gaps down on EPS. This stock opened higher and has sold off. I will pair the position at 10:00 and again at 10:30. I want to give it a little more room to try and understand the trading. The stock has held at key support so lets see...

Time 10:39

Trading Technique:

Buy stocks that are moving higher, don't try and buy stocks that are selling off in an attempt to get them cheaper. This is basically the theory that you don't want to catch a falling knife because you will probably cut off your fingers in the process. Leave the falling stock alone until you see an Alligator buy signal on the 60 min. You might pay a little more for the stock but you will make more money.

Stocks: TNH, JRJC

TNH: All systems go with a cup & handle daily base. This is the first pullback to the 20 day ma and we have confirmation on the 60 min. and daily Alli. buy signals.

JRJC: Massive Alligator buy signal on the daily and 60 min. because of a positive pre-announcement of EPS. The stock had broken above the 200 day ma and was consolidating. Volume is perfect; very strong on the rally above the 200 day ma and light on the consolidation. Now of course volume is huge today because of the announcement. There are only 9 mil shares in the float and a 40% short position. This is a new type of trade for me because if is already up 15% today and I'm still buying. this will really put to the test the theory that high S/D ratings lead to strong sustainable up trends. Because of the seemingly aggressive nature of this trade I will only have a 1/3 position at this time. If we get an other 60 min. buy signal later we can always add.

Time 11:06

Stocks: PWRD, VMW

PWRD: Finally got the second 60 min. buy signal. And it happend on volume. So we will add the final 1/3 of the position.

VMW: OK here we go again. I didn't like the 60 min. yesterday as it was not in sync and we sold the stock for a small gain. The stock then sold off over $1 so the my read was right. Now the stock is giving a strong in sync 60 min. buy signal on volume. If this holds all day the stocks daily chart will give a confirming buy signal that will represent a continuation of the positive trend.

Time 11:00

Trading Technique:

Take the opportunity when the market is up strong on a given day to look into the portfolio and judge each position again. Look for signs of weakness that you may have missed when originally taking the position. If you uncover problems put your ego aside and sell the position. Use strong market days to clean up and tighten up the portfolio. This will allow you to constantly sharpen the portfolio's focus on the very best ideas. When the market eventually sells off the hit won't be as bad because the weakness will already be pruned out, which will make it easier to hold on to the best ideas.

Stocks: SUTR, VMW

SUTR: Perfect example of above theory. This stock has an S/D rating below optimum level and EPS not quite up to the stellar performance we require. I allowed the good chart pattern to cloud my judgement.

VMW: Bought it this morning in the excitement of the strong open but on further inspection realize that the 60 min. is not in sync and the daily chart is not strong enough. In fact it is actually negative. So putting aside the Ego once again I'm selling the stock for a small gain.

Time 9:55

Stocks: SUTR

SUTR: Does not have a high enough S/D rating to warrent increased position. Hold what we have and look to book a 14% gain and move on.

Time 9:38

Trading Technique: Gap Down at Open...

Rule: If a stock we own gaps down at the open because of EPS news that disappoints (e.g. EPS below Est., EPS ok but Rev. below Est., EPS & REV. good but guidance not good) then we sell 1/2 of the position as soon as the market allows and hold 1/2 for the first 1/2 hour. If the stock has not sufficiently recovered by 10:00 then we sell the whole position. If the stock goes to a new high during the day than we will buy the stock back because this happens very infrequently and is almost always a major buy signal.

Time 9:56

Stocks: GDX

Time to hedge Gold again. Major 60 min. Alli. signal down on CEF and GDX. We simply need to protect CEF and Short GDX with a cover at $46.5. $1.75 risk to cover 180,000 shares of CEF.

Time 2:45

Market Commentary: Hedge is off...

All three indices give 60 min. buy signal and of course the daily signal is still positive so we will take off the hedge. Don't forget we want to loose money on the hedge because we should make more money long. At the moment we are not making money on the long side but as long as the market is not selling off have faith in out long ideas they will work.

Time 10:32

Stock: JASO

Don't add to this stock until it goes above the 20 day MA and is giving another ALLI. buy signal. PAY MORE YOU WILL MAKE MORE

Time 10:14

Stocks To Buy: UTHR, YGE, BIDU

UTHR: Great set up just waiting for the ALLI. Great EPS and stock is sitting on major support after a 50% retracement of prior big move.

YGE: This group is breaking out of quallity EPS. Watch JASO, FSLR and the others that have already reported EPS to see it they follow through. Waiting for YGE to breakout above the 200 day MA. and give the ALLI.

BIDU: Let's first say that we traded this stock perfectly. Sold it right near the top because we followed our rules and the stock has now sold off $30 to its 20 day MA. This is the first pullback tot he 20 day and we must now wait and watch the type of base it builds. There are signs of a cup and perhaps a handle will now form. this will be a weekly process not daily so be patient.

Positions To Increase: PWRD, JASO, SOL

PWRD: I was right on the call last week that the buy signal was disjointed and therefore suspect. The signal has failed and the stock is selling off again. Watch to see if it holds support and then buy the ALLI sig.

Hedge: GDX

Still confused signal. Looks like a sell but CEF is looking a lot better so I hesitate to put on the hedge. GDX is giving a 60 min. sell sig. but no real ALLI yet. Wait Wait Wait...

Time 1:30

Stock: PWRD

This 60 min. chart is an example of indicators that are out of sync. While it appears that a new buy signal has occurred, I think that this may be a false signal because we are not getting the synced up signal that implies an impulse move is upon us. This signal also has occurred while the markets are hitting new lows since we put the hedge on, which adds creadence to my desire for caution when viewing this signal.

Time 10:19

Stocks: GDX, PWRD

GDX: Watch closely for signs of another selloff. The stock is finding resistance right at the downtrend, at the 200 day MA and right at the previous breakdown which is now resistance. Put the hedge back on if sell signal hits.

PWRD: In the midst of this mornings sell off in the overall markets PWRD is up 20 cents and attempting to give a 60 min. buy signal. Be ready to double the position if we ge the signal

Time 9:10

Market Commentary: Hedge in place and working...

Today the markets look to open gap down on the back of negative EPS news out of AIG and further negative news from Citigroup. So once again the Financials are leading the way down. It appears that the markets are reverting back to the long term trends; higher commodities (oil new high up $2 to $125.74, gold on the move higher) and financials and other stocks headed lower. We now have a good hedge in place and don't want to disturb it until we see a difinitive buy signal. As always with hedges we would rather lose money on the hedge because we would make more money on the rest of the portfolio. The rest of the portfolio should be held intact until such time as we hit stop losses or get sell signals. The point of the hedge is to allow us to hold the quality ideas as long as possible to allow them to perform.

Time 3:32

Market Commentary: Hedging

Major Alligator sell signal on all 3 indecies on the 60 min. chart. This signal has let to at least a 2.5 - 5% decline in the averages every time I get the signal. The daily charts now will show the markets failing at the key resistance levels around their respective 200 day moving averages. It is also important to note that this signal comes on a day when we had two key average components, CSCO & DIS announce better than expected EPS numbers.

Stocks: DIA, QLD, SSO, SOHU, GLW

DIA,SSO,QLD are the hedging tools. DIA replaces DDM because we could not borrow DDM. Need to short 2X DIA to get th esame coverage.

SOHU: Sadly we must sell this hugh winner as a major sell signal has occured. We are booking 54.3% on the trade in about 1 month of trading. Not bad, cause for a little cheer!

GLW: Don't like the original decision I made. S/D rating 42 and the stock is giving 60 min. sell sig. I'd rather cut loss at 4.3% than wait for the stop.

Time 10:39

Market Commentary:

If we don't get an Allitgator down move in the markets than we can relax and allow our individual positions to mature. This does not mean that our positions will go up everey day, but as long as the ind. pos. don't violate their own chart patterns or go Alli. negative on us then we can simply sit back and let the positions follow their course. Be patient and unemotional.

Stocks: UTHR, PWRD, CSIQ, SUTR, SOHU

UTHR: Waiting for the 60 min. buy signal. The daily is in a good position.
PWRD: Double on the next 60 min. buy sig.
CSIQ: Let it go up. We will need to be patient to wait for the next buy sig. to double position size. This position is following the development of PWRD
SUTR: Waiting for the next 60 min. buy sig to double. Great daily chart
SOHU: Watch carefully for sell signal. Stock is up over 65% for us and the daily sell signal is getting close. However, the powerful nature of the up move may negate the early warning signals and the stock could walk up the line. Be patient but vigilant. Any Alli. down must be sold quick.

Time 4:08

Market Comments: Hedging

Much better than expected numbers out of both companies. Covered hedge because we had the hedge on just in case the numbers were bad. Now we will go back to our regular plan which is to only hedge if we get an alligator down.

Time 3:45

Market comment: Hedging

EPS from two big market components, CSCO & DIS, are out after the close. The markets are at or near major resistance and both companies are vulnerable to the economic problems. CSCO has disappointed on EPS the last few quarters and DIS is heavily subject to the price of oil. I want to take a 1/3rd position in the market averages hedge, QLD, DDM, SSO. I don't believe that a stronger number out of these companies can really propel the markets a lot higher at the open, but the risk of this being the catalyst for a sell off I believe is high. If the numbers are ok we will cover the hedge after the open, but if the numbers create a gap down then a possible perfect 60 min. sell sig. could be in play and we will add to the hedge at 9:45, 10:00 and 10:30.

I want to protect the gains and would be happy if the markets gapped up 2%. We would lose roughly $7,500 on each position but we would be making a lot more on the rest of the portfolio.

Time 2:20

Stocks: CSIQ, SUTR, CEO, PWRD, UTHR

CSIQ: This stock has one of the highest rating I can find. S/D 98, RS 99, A/D A, Hugh volume numbers over the last month, Blowout EPS and Hugh Rev. ramp. The chart looks like a C&H with a little C&H in the bigger handle. All are breaking out today on volume.

SUTR: Perfect pennant breakout with good volume. EPS# good. Tough to buy cause of price and small float. Be patient and buy on the bid unless volume shows up on offer.

CEO: Buying 1st pullback to the 20 day after long term downtrend was broken.

PWRD: Stock selling off. Look for support on the 20 day and double position or buy the next 60 min. buy sig.

UTHR: Coming down buy the next 60 min. buy sig

Time 3:52

Stock: CHNR

The stock looks so good that I want to begin buying. This stock is so hard to buy because it is so thin. Lets buy a little each time the 60 min. chart sets up. And make sure to buy on the bid.

Time 2:32

Stocks: PWRD, CHNR

PWRD: AWSOME daily Alli! Add to the position on the 1st pullback to the 20 day and/or the next 60 min. buy sig.

CHNR: Small float, volume comming in on breakout. Good daily C&H. Waiting for the 60 min. to set up again be patient.

Time 11:56

Stock: MELI, GLW

MELI: Major breakout on the 60 min. with hugh alligator. We need to addto the position at the close to bring it up to full position. The stock had a nice consolidation off of the last run and had its 1st pullback to the 20 day which usually gives the last good buying opportunity of the current move. The company announces EPS on May 8th

GLW: What a great weekly cup with handle. Combine that C&H with 4 quarters of accelerating growth and you have the making of a great momentum stock. The S/D rating is 41 s othere is no need to be aggressive on the stock it should be a slow mover but good if the market continues higher. This is what we would expect with a big market type stock. But on pullbacks.

Time 9:53

Stock: CEF

We are getting a 60 min. buy alligator. The daily looks very oversold and we are getting a buy sig on a double bottom in both the MACD and Stos. It is time to take our gain on the GDX short and move it into CEF. Lets get them coming and going!

Time 3:05

Stocks: DSX, DRYS, TBSI

The dry bulk shippers all have the same chart patterns both weekly and daily. Massive weekly reverse head and shoulders. Breakout above the 200 day MA and strong volume. The fundamental story is the opposite of the FDP story of last week. FDP had bad EPS #s partly due to the higher than expected shipping costs. That should mean that t he shippers should have better than expected numbers. The 1st look at the sector is GNK. Yesterday their EPS came in .15 cents higher expected and Revenues were also well above expected. The stock is up 5% on the news breaking out of a strong base on volume. We need to buy the best S/D rated and RS rated stocks going into their EPS news over the next few weeks. That would be DSX, DRYS, & TBSI. Wait for the right 60 min. charts and go to work!

CEF & GDX:

The hedge is off for now. I'm not sure I need it. CEF seems to be carving out a bottom. The stock hit a new low yesterday on huge volume but momentum is not even close to as negative as before when the stock sold off. The 200 day MA is right at 11 and while the stock may drift down to that level I don't think we need to be hedged against a big move lower. In fact, an alligator move that breaks the downtrend should be bought. The stock is right up against that line.

Market Comments: Fed annoucements today refocus the market on the reality of further liquidity increases that will add to the inflationary story. The sell off in commodities leading up to the Fed decision to stop lowering rates will now give way to the resumed trend in commodities to the upside as the real liquidity inflation continues. The FED is working in concert with the ECB to try and lower the libor rate and the FED is now accepting ABS that are AAA rated (ha, ha) along with MBS.

Time 2:35

Stocks: AUO, GLW

These stocks make up the best of the flat panal LCD market play. They each have 4 quarters of explosive growth in revenue and EPS (GLW less explosive because of the size and type of their overall business). As we get closer to the deadline of all HD tv signals at the end of this year it appears these stocks are going to make a run. The long term weekly charts of both are classics, perfect cup with handles. Both have volume breakouts on the daily charts with positive EPS announcements. All systems go, we need to own a full position in AUO (S/D n/a because ADR) now. GLW has a 41 s/d rating and so doesn't fit my rules but Dad has no such rules and will give us exposure.

Time 11:40

Trading strategy: We must take gains on stocks when we get the daily DMI sell signal and it is confirmed by the 60 min. sell signal. This combination is very strong and leads to at the very least a shake out that will give us another buy signal later or at the worst a permanent top. Don't be greedy. Once a stock is up over 14% this sell signal is good.

Stock: SNDA

SNDA looks very good but we must wait for the 60 min. buy signal. Alligators only!

Time 10:38

Stock: GDX, SLT, PWRD

GDX: It appears I have made an error when covering 1/2 of GDX yesterday. I broke my cardinal rule and tried to anticipate the markets move. I must remember that the only way to make money in the market following momentum principals is to read and react not to guess at direction. I should have stayed completely short until a buy signal was given on the 60 min. and daily charts. It would have been ok to lose some money on the hedge to be sure the sell off was over. On the plus side I did hold half and that is an improvement. It takes time to change behavior. Keep at it!

SLT: Love the idea and no real sell signal but can't afford to hold as the commodity sector is destroyed.

PWRD: Chart looks great with volume on the breakout. Wait for the next 60 min. buy signal to double the position.