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.