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.