Bearish Episodic Pivots

When the market enters correction, keeping a close eye on the bearish breakdowns tells you a lot and indicates which sectors are likely to experience corrections. Also if most EP's are happening at top of range, it often is not a good sign.

AAPL,Apple Inc (Google  Yahoo  Earnings  Chart) 
ABK,Ambac Financial Group (Google  Yahoo  Earnings  Chart) 
ALU,Alcatel-Lucent (Google  Yahoo  Earnings  Chart) 
BEN,Franklin Resources Inc (Google  Yahoo  Earnings  Chart) 
BIDU,Baidu.com Inc (Google  Yahoo  Earnings  Chart) 
BSC,Bear Stearns Companies (Google  Yahoo  Earnings  Chart) 
COWN,Cowen Group Inc (Google  Yahoo  Earnings  Chart) 
DXPE,Dxp Enterprises Inc (Google  Yahoo  Earnings  Chart) 
FMT,Fremont General Corp (Google  Yahoo  Earnings  Chart) 
FSLR,First Solar Inc (Google  Yahoo  Earnings  Chart) 
GOOG,Google (Google  Yahoo  Earnings  Chart) 
GRRF,China Grentech Corp Limited ADS (Google  Yahoo  Earnings  Chart) 
GS,Goldman Sachs Group Inc (Google  Yahoo  Earnings  Chart) 
HMA,Health Management Assoc (Google  Yahoo  Earnings  Chart) 
ICE,Intercontinental Exchange Inc (Google  Yahoo  Earnings  Chart) 
IVAC,Intevac Inc (Google  Yahoo  Earnings  Chart) 
JLL,Jones Lang Lasalle Inc (Google  Yahoo  Earnings  Chart) 
LCAV,Lca-vision New (Google  Yahoo  Earnings  Chart) 
MTG,Mgic Investments Corp (Google  Yahoo  Earnings  Chart) 
NFI,Novastar Financial Inc (Google  Yahoo  Earnings  Chart) 
NNI,Nelnet Inc (Google  Yahoo  Earnings  Chart) 
OCLS,Oculus Innovative Sciences Inc (Google  Yahoo  Earnings  Chart) 
OPTM,Optium Corp (Google  Yahoo  Earnings  Chart) 
PWRD,Perfect World Co Ltd (Google  Yahoo  Earnings  Chart) 
QRR,Quadra Realty Trust Inc (Google  Yahoo  Earnings  Chart) 
RAS,Rait Financial Trust (Google  Yahoo  Earnings  Chart) 
RCII,Rent A Center Inc (Google  Yahoo  Earnings  Chart) 
RDN,Radian Group (Google  Yahoo  Earnings  Chart) 
RIMM,Research In Motion Ltd (Google  Yahoo  Earnings  Chart) 
RSO,Resource Capital (Google  Yahoo  Earnings  Chart) 
RWT,Redwood Trust Inc (Google  Yahoo  Earnings  Chart) 
SI,Siemens Aktien (Google  Yahoo  Earnings  Chart) 
SIMO,Silicon Motion Technology Corp (Google  Yahoo  Earnings  Chart) 
TWIN,Twin Disc Inc (Google  Yahoo  Earnings  Chart) 
VCI,Valassis Communications (Google  Yahoo  Earnings  Chart) 
WCI,Wci Communities (Google  Yahoo  Earnings  Chart) 

Market Monitor

• Market continues to be in red zone with 65 day bull bear ratio at 503/658. First hint of market stabilization will happen when the denominator stabilizes and reverses.
  
• This correction has been persistently followed by chorus of dip buyers and the market has shown that buying dips so far has not been a good strategy. When enough dip buyers get frustrated and throw in towel, a tradeable rally happen.
  
• For longer term traders and traders trading momentum based strategies, best option is to sit back relax, let there be confirmation of next up move and then there will be many opportunities.
• We are now looking at corrections starting in some momo names like AAPL, GOOG, RIMM, FSLR, etc. This is good sign. It indicates a hint of fear on part of bulls. When everyone gets too scared to hold overnight position and starts moving to sideline, we may have good bounce. But at this stage I am in the camp of protect your trading capital. This correction has not offered any hints so far that it is stabilizing and it is time to buy.
  

Episodic Pivots Headlines

Headlines
ASHW | Catalyst: Analyst Upgrade -> Ashworth upgraded by B. Riley & Co
Float: 12 (mil) Institutional Ownership: 62% Relative Strength: 10
IBD EPS Rtg: 8 Net Profit Margin: -4% ROE: -8%
EPS Growth: 225% (1yr) -51% (3yr)
Sales Growth: 2% (1yr) 12% (3yr)

ASYS | Catalyst: New Contract -> Amtech gets $4.9 mln solar order, shares rise
Float: 6 (mil) Institutional Ownership: 23% Relative Strength: 95
IBD EPS Rtg: 13 Net Profit Margin: 0% ROE: %
EPS Growth: 387% (1yr) 0% (3yr)
Sales Growth: 45% (1yr) 28% (3yr)

DIOD | Catalyst: New Product -> Diodes, Inc. Announces Breakthrough 300V SBR(R) Rectifiers with Industry Leading Performance
Float: 20 (mil) Institutional Ownership: 86% Relative Strength: 64
IBD EPS Rtg: 96 Net Profit Margin: 15% ROE: 19%
EPS Growth: 35% (1yr) 55% (3yr)
Sales Growth: 60% (1yr) 36% (3yr)

FSLR | Catalyst: Common Offering -> Continuation - First Solar To Raise $1 Billion In Secondary Offering
Float: 67 (mil) Institutional Ownership: 35% Relative Strength: 99
IBD EPS Rtg: 75 Net Profit Margin: 8% ROE: 2%
EPS Growth: 172% (1yr) 0% (3yr)
Sales Growth: 181% (1yr) 248% (3yr)

FWLT | Catalyst: Cramer -> Sez many of the infrastructure stocks have had a nice pullback lately
Float: 70 (mil) Institutional Ownership: 81% Relative Strength: 99
IBD EPS Rtg: 75 Net Profit Margin: 9% ROE: 0%
EPS Growth: 257% (1yr) 0% (3yr)
Sales Growth: 59% (1yr) -2% (3yr)

GHM | Catalyst: Earnings Report -> Sales jump 37% at Graham
Float: 4 (mil) Institutional Ownership: 36% Relative Strength: 98
IBD EPS Rtg: 59 Net Profit Margin: 9% ROE: 20%
EPS Growth: 52% (1yr) 0% (3yr)
Sales Growth: 19% (1yr) 21% (3yr)

GPCB | Catalyst: Biotech/Drug Approval -> GPC Biotech's stock rebounded Monday after the company withdrew its new-drug application (NDA) for accelerated approval of prostate cancer drug satraplatin.
Float: 32 (mil) Institutional Ownership: 30% Relative Strength: 1
IBD EPS Rtg: 12 Net Profit Margin: -333% ROE: -73%
EPS Growth: 6% (1yr) 0% (3yr)
Sales Growth: 143% (1yr) 2% (3yr)

GRMN | Catalyst: Takeover, merger etc -> Garmin shares surged $5.17, or 6.5 percent, to $85.07. A CIBC World Markets Corp. analyst said the handheld satellite-based navigation device maker could make a bid for Navteq Corp., which develops digital maps.
Float: 100 (mil) Institutional Ownership: 31% Relative Strength: 95
IBD EPS Rtg: 98 Net Profit Margin: 29% ROE: 38%
EPS Growth: 65% (1yr) 42% (3yr)
Sales Growth: 73% (1yr) 46% (3yr)

INAP | Catalyst: Barron's. WSJ, BW etc story -> Tiny Rival Takes Aim at Akamai
Float: 40 (mil) Institutional Ownership: 53% Relative Strength: 23
IBD EPS Rtg: 45 Net Profit Margin: -4% ROE: -3%
EPS Growth: 170% (1yr) 0% (3yr)
Sales Growth: 18% (1yr) 9% (3yr)

ISRG | Catalyst: Earnings Report -> Continuation
Float: 36 (mil) Institutional Ownership: 95% Relative Strength: 98
IBD EPS Rtg: 98 Net Profit Margin: 21% ROE: 16%
EPS Growth: -25% (1yr) 0% (3yr)
Sales Growth: 64% (1yr) 60% (3yr)

MA | Catalyst: Earnings Report -> Anticipation for 8/1 Earnings report?
Float: 37 (mil) Institutional Ownership: 78% Relative Strength: 98
IBD EPS Rtg: 74 Net Profit Margin: 4% ROE: 7%
EPS Growth: -81% (1yr) 0% (3yr)
Sales Growth: 13% (1yr) 14% (3yr)

MCX | Catalyst: Takeover, merger etc -> MC Shipping to be bought by Bear Stearns Merchant for $284 mln
Float: 4 (mil) Institutional Ownership: 14% Relative Strength: 78
IBD EPS Rtg: 66 Net Profit Margin: 16% ROE: 19%
EPS Growth: -7% (1yr) 47% (3yr)
Sales Growth: 48% (1yr) 14% (3yr)

MSA | Catalyst: Analyst Upgrade -> Mine Safety upgraded by Robert W. Baird
Float: 29 (mil) Institutional Ownership: 73% Relative Strength: 58
IBD EPS Rtg: 47 Net Profit Margin: 7% ROE: 15%
EPS Growth: -21% (1yr) 10% (3yr)
Sales Growth: 1% (1yr) 10% (3yr)

PCCC | Catalyst: Earnings Report -> PC Connection Q2 earnings rise
Float: 9 (mil) Institutional Ownership: 47% Relative Strength: 76
IBD EPS Rtg: 92 Net Profit Margin: 1% ROE: 8%
EPS Growth: 204% (1yr) 32% (3yr)
Sales Growth: 13% (1yr) 8% (3yr)

RCCC | Catalyst: Takeover, merger etc -> Verizon to buy Rural Cellular in $2.67B deal
Float: 13 (mil) Institutional Ownership: 51% Relative Strength: 99
IBD EPS Rtg: 18 Net Profit Margin: -18% ROE: 0%
EPS Growth: -65% (1yr) 0% (3yr)
Sales Growth: 4% (1yr) 4% (3yr)

SPW | Catalyst: New Contract -> SPX lands Chinese nuclear contract, SPX Corp upgraded by Citigroup
Float: 56 (mil) Institutional Ownership: 83% Relative Strength: 92
IBD EPS Rtg: 39 Net Profit Margin: 4% ROE: 11%
EPS Growth: 21861% (1yr) 29% (3yr)
Sales Growth: 12% (1yr) 7% (3yr)

TEX | Catalyst: Earnings Report -> Terex Raises Its Full-Year Guidance 2Q Profit Climbs on Higher Sales
Float: 101 (mil) Institutional Ownership: 81% Relative Strength: 93
IBD EPS Rtg: 99 Net Profit Margin: 6% ROE: 28%
EPS Growth: 110% (1yr) 0% (3yr)
Sales Growth: 24% (1yr) 25% (3yr)

UBH | Catalyst: Takeover, merger etc -> Continuation
Float: 16 (mil) Institutional Ownership: 17% Relative Strength: 72
IBD EPS Rtg: 36 Net Profit Margin: 30% ROE: 14%
EPS Growth: -6% (1yr) 2% (3yr)
Sales Growth: 12% (1yr) 11% (3yr)

VVUS | Catalyst: Biotech/Drug Approval -> Vivus receives FDA approval of Evamist NDA; eligible to receive milestone payment of $140,000,000 from KV Pharmaceutical
Float: 56 (mil) Institutional Ownership: 51% Relative Strength: 90
IBD EPS Rtg: 28 Net Profit Margin: -114% ROE: -60%
EPS Growth: 21% (1yr) 0% (3yr)
Sales Growth: 18% (1yr) -14% (3yr)

WMAR | Catalyst: Earnings Report -> Continuation
Float: 15 (mil) Institutional Ownership: 74% Relative Strength: 51
IBD EPS Rtg: 44 Net Profit Margin: -1% ROE: -2%
EPS Growth: -203% (1yr) 0% (3yr)
Sales Growth: 4% (1yr) 3% (3yr)

WSTG | Catalyst: Earnings Report ->
Float: 4 (mil) Institutional Ownership: 20% Relative Strength: 33
IBD EPS Rtg: 93 Net Profit Margin: 2% ROE: 17%
EPS Growth: 19% (1yr) 43% (3yr)
Sales Growth: 32% (1yr) 38% (3yr)


No headlines
FXI
IAI
ICE
KIE
PZJ
RSP
TMB
XSD

Episodic Pivots Headlines

Headlines
ARTC | Catalyst: Earnings Report -> ArthroCare Reports Second Quarter 2007 Revenue of $80 Million, EPS of $0.37, Exceeding Consensus Estimates
Float: 28 (mil) Institutional Ownership: 104% Relative Strength: 85
IBD EPS Rtg: 42 Net Profit Margin: 12% ROE: 11%
EPS Growth: 27% (1yr) 50% (3yr)
Sales Growth: 23% (1yr) 30% (3yr)

AXL | Catalyst: Earnings Report -> American Axle quarterly earnings jump 67 percent net income rises 40% EPS $0.64 Per Share
Float: 50 (mil) Institutional Ownership: 102% Relative Strength: 77
IBD EPS Rtg: 74 Net Profit Margin: -7% ROE: -24%
EPS Growth: -503% (1yr) 0% (3yr)
Sales Growth: -6% (1yr) -5% (3yr)

BLG | Catalyst: Earnings Report -> Building Materials shares rally 19% on earnings surprise
Float: 29 (mil) Institutional Ownership: 98% Relative Strength: 7
IBD EPS Rtg: 46 Net Profit Margin: 3% ROE: 13%
EPS Growth: -22% (1yr) 67% (3yr)
Sales Growth: 11% (1yr) 32% (3yr)

BOOM | Catalyst: Earnings Report ->
Float: 12 (mil) Institutional Ownership: 95% Relative Strength: 93
IBD EPS Rtg: 86 Net Profit Margin: 16% ROE: 39%
EPS Growth: 84% (1yr) 135% (3yr)
Sales Growth: 43% (1yr) 47% (3yr)

CALD | Catalyst: Earnings Report -> Callidus Software Q2 loss narrows
Float: 29 (mil) Institutional Ownership: 47% Relative Strength: 95
IBD EPS Rtg: 25 Net Profit Margin: -11% ROE: -16%
EPS Growth: 2% (1yr) 0% (3yr)
Sales Growth: 24% (1yr) 2% (3yr)

CME | Catalyst: Other -> CME Group Reaches New Volume Records
Float: 35 (mil) Institutional Ownership: 82% Relative Strength: 69
IBD EPS Rtg: 94 Net Profit Margin: 38% ROE: 30%
EPS Growth: 32% (1yr) 48% (3yr)
Sales Growth: 23% (1yr) 26% (3yr)

CVTI | Catalyst: Earnings Report -> Rebound from Wednesdays reaction to 2Q Loss
Float: 6 (mil) Institutional Ownership: 67% Relative Strength: 3
IBD EPS Rtg: 10 Net Profit Margin: 0% ROE: -1%
EPS Growth: -125% (1yr) 0% (3yr)
Sales Growth: 6% (1yr) 5% (3yr)

CYMI | Catalyst: Earnings Report -> Cymer 2Q Profit Rises
Float: 35 (mil) Institutional Ownership: 110% Relative Strength: 66
IBD EPS Rtg: 86 Net Profit Margin: 17% ROE: 15%
EPS Growth: 88% (1yr) 0% (3yr)
Sales Growth: 42% (1yr) 27% (3yr)

DECK | Catalyst: Earnings Report -> Deckers Outdoor 2Q Profit Falls but beats forecast
Float: 13 (mil) Institutional Ownership: 109% Relative Strength: 98
IBD EPS Rtg: 87 Net Profit Margin: % ROE: %
EPS Growth: -1% (1yr) 47% (3yr)
Sales Growth: 15% (1yr) 36% (3yr)

GNET | Catalyst: Public Offering -> Global Traffic's offering of 4.5 mln shares priced at $6.25/shr
Float: 9 (mil) Institutional Ownership: 17% Relative Strength: 91
IBD EPS Rtg: 15 Net Profit Margin: -12% ROE: -23%
EPS Growth: -284% (1yr) 0% (3yr)
Sales Growth: 27% (1yr) 0% (3yr)

ICE | Catalyst: Earnings Report -> InterContinental Exchange profit rises 73%
Float: 67 (mil) Institutional Ownership: 75% Relative Strength: 96
IBD EPS Rtg: 96 Net Profit Margin: 45% ROE: 25%
EPS Growth: 712% (1yr) 87% (3yr)
Sales Growth: 101% (1yr) 50% (3yr)

KYPH | Catalyst: Takeover, merger etc -> Medtronic to buy Kyphon for $3.9B
Float: 46 (mil) Institutional Ownership: 120% Relative Strength: 96
IBD EPS Rtg: 88 Net Profit Margin: 2% ROE: 3%
EPS Growth: 30% (1yr) 10% (3yr)
Sales Growth: 33% (1yr) 46% (3yr)

LNCE | Catalyst: Earnings Report -> Lance, Inc. Reports 2007 Second Quarter Net Revenue of $197 Million, Up 5%, and Diluted EPS Increase of 50% to $0.30 from Continuing Operations; Raises Full Year Earnings Estimates
Float: 31 (mil) Institutional Ownership: 72% Relative Strength: 83
IBD EPS Rtg: 82 Net Profit Margin: 3% ROE: 12%
EPS Growth: 3% (1yr) -2% (3yr)
Sales Growth: 12% (1yr) 9% (3yr)

NTY | Catalyst: Earnings Report -> NBTY Inc. Q3 earnings rise
Float: 59 (mil) Institutional Ownership: 93% Relative Strength: 80
IBD EPS Rtg: 90 Net Profit Margin: 9% ROE: 20%
EPS Growth: 43% (1yr) 11% (3yr)
Sales Growth: 8% (1yr) 16% (3yr)

RGNC | Catalyst: Public Offering -> Regency Energy expects $312.5 mln from offering
Float: 12 (mil) Institutional Ownership: 29% Relative Strength: 88
IBD EPS Rtg: 24 Net Profit Margin: 0% ROE: -1%
EPS Growth: 36% (1yr) 0% (3yr)
Sales Growth: 26% (1yr) 0% (3yr)

SRCL | Catalyst: Earnings Report -> Stericycle Q2 earnings rise
Float: 84 (mil) Institutional Ownership: 83% Relative Strength: 91
IBD EPS Rtg: 91 Net Profit Margin: 14% ROE: 19%
EPS Growth: 57% (1yr) 18% (3yr)
Sales Growth: 30% (1yr) 20% (3yr)

SSD | Catalyst: Earnings Report -> Simpson Manufacturing Q2 earnings fall
Float: 37 (mil) Institutional Ownership: 95% Relative Strength: 75
IBD EPS Rtg: 50 Net Profit Margin: 11% ROE: 15%
EPS Growth: 4% (1yr) 20% (3yr)
Sales Growth: 2% (1yr) 16% (3yr)

TRGT | Catalyst: New Contract -> GlaxoSmithKline and Targacept Form Alliance in Therapeutics for CNS-related Disorders
Float: 13 (mil) Institutional Ownership: 25% Relative Strength: 92
IBD EPS Rtg: 49 Net Profit Margin: 9% ROE: 0%
EPS Growth: 96% (1yr) 0% (3yr)
Sales Growth: 2234% (1yr) 124% (3yr)

TUNE | Catalyst: Earnings Report -> Microtune Q2 net income rises
Float: 50 (mil) Institutional Ownership: 45% Relative Strength: 69
IBD EPS Rtg: 51 Net Profit Margin: -9% ROE: -7%
EPS Growth: -108% (1yr) 0% (3yr)
Sales Growth: 21% (1yr) 14% (3yr)

UBH | Catalyst: Takeover, merger etc -> KeyCorp to buy U.S.B. Holding for $24.95-share
Float: 16 (mil) Institutional Ownership: 17% Relative Strength: 72
IBD EPS Rtg: 36 Net Profit Margin: 30% ROE: 14%
EPS Growth: -6% (1yr) 2% (3yr)
Sales Growth: 12% (1yr) 11% (3yr)

WOOF | Catalyst: Earnings Report -> VCA Antech Q2 earnings rise
Float: 82 (mil) Institutional Ownership: 90% Relative Strength: 78
IBD EPS Rtg: 90 Net Profit Margin: 10% ROE: 26%
EPS Growth: 54% (1yr) 33% (3yr)
Sales Growth: 17% (1yr) 22% (3yr)


No headlines
ACA
JADE
SKF

Vacation Time

I will be on a working vacation till August end starting from tonight.

The Market Monitor and other regular data posts will continue once I settle down and find reliable web access in India. I will put the comments on moderation to catch spam.

Comparison

On February 27th we had a correction of some magnitude. The circumstances were vastly different. Look at these numbers below from that day. Look at the 65 days ratio.

Market Monitor

Total 4% plus bullish breakouts=24
Total 4% plus bearish breakouts=1404
65 day bullish/bearish ratio= 656/281
Stocks up 50% or more in a month=8
Stocks up 25% or more in a month=65
Number of stocks with 100% plus move =294
Number of stocks up 200% or more = 69
4% plus signals for 100plus universe=2
4% plus signals for 200plus universe=1

You will notice the 65 days ratio has deteriorated a lot during this correction and reversed. Which makes this different. In the past such ratio reversals have signaled 10 to 15% down moves. That does not mean this thing will develop same way, but the 1404 correction had panic written all over it. While this had enthusiastic dip buyers. So may be this might have more shakeout to get the dip buyers scared.

Opportunity Buffet Part1

With 76 stocks up 4% or more on a down day, it was not bad day for long side opportunistic plays. In real serious corrections you will find less than 30 stocks barely managing to eke out 4% gains. Yesterday we had 20 stocks up 8%. So the story continues, pockets of momentum still in play.In real corrections ultimately even the best of breed stocks breakdown or dive in to bases. So if this corrections continue, all momo names will also correct, only thing is they will have relatively weaker correction. Considering the way yesterday shaped up, I am of the opinion we might see more downside after brief rally attempts.

With a reflex bounce a high probability, it may not be bad time to look at the long side opportunities, you may not want to rush in to them however .Playing the bounce game is still for nimble swing or short duration traders who can keep one hand on exit door. If the market does not act right, one should be able to exit with little loss. The better strategy is to sit out and find opportunities once the 65 day ratio turns.

Bullish IBD 70 plus EPS
There were 30 stocks in this scan yesterday.

AAPL,Apple Inc (Google Yahoo Earnings Chart)
ACA,ACA Capital Holdings Inc (Google Yahoo Earnings Chart)
AGP,Amerigroup (Google Yahoo Earnings Chart)
AXYS,Axsys Technologies (Google Yahoo Earnings Chart)
BIDU,Baidu.com Inc (Google Yahoo Earnings Chart)
BLUD,Immucor Inc (Google Yahoo Earnings Chart)
CMI,Cummins Inc (Google Yahoo Earnings Chart)
DLX,Deluxe Corp (Google Yahoo Earnings Chart)
EICU,Visicu Inc (Google Yahoo Earnings Chart)
FFIV,F5 Networks Inc (Google Yahoo Earnings Chart)
FMR,First Mercury Financial Corp (Google Yahoo Earnings Chart)
GGG,Graco Inc (Google Yahoo Earnings Chart)
HPY,Heartland Payment Systems Inc (Google Yahoo Earnings Chart)
ICLR,Icon Plc Ads (Google Yahoo Earnings Chart)
IFSIA,Interface Inc Cl A (Google Yahoo Earnings Chart)
KEX,Kirby Corp (Google Yahoo Earnings Chart)
MCRI,Monarch Casino & Resort (Google Yahoo Earnings Chart)
OI,Owens Illinois Inc (Google Yahoo Earnings Chart)
OMTR,Omniture Inc (Google Yahoo Earnings Chart)
PCCC,Pc Connection Inc (Google Yahoo Earnings Chart)
PSYS,Psychiatric Solutions Inc (Google Yahoo Earnings Chart)
RVBD,Riverbed Technologies Inc (Google Yahoo Earnings Chart)
STRA,Strayer Education Inc (Google Yahoo Earnings Chart)
TGI,Triumph Group Inc (Google Yahoo Earnings Chart)
TISI,Team Inc (Google Yahoo Earnings Chart)
TNH,Terra Nitrogen Co L.P. (Google Yahoo Earnings Chart)
TYL,Tyler Technologies (Google Yahoo Earnings Chart)
VDSI,Vasco Data Security Intl (Google Yahoo Earnings Chart)
VIGN,Vignette Corporation (Google Yahoo Earnings Chart)
WFR,Memc Electronic Material (Google Yahoo Earnings Chart)


Out of these stocks to watch are:
MCRI, KEX, BLUD, FFIV, ICLR, VIGN, AGP, HPY, WFR, FMR, OMTR, GGG, DLX, PSYS, AND TNH

Bullish Double Trouble
13 stocks in this scan.

AAPL,Apple Inc (Google Yahoo Earnings Chart)
BIDU,Baidu.com Inc (Google Yahoo Earnings Chart)
CMI,Cummins Inc (Google Yahoo Earnings Chart)
DLX,Deluxe Corp (Google Yahoo Earnings Chart)
FFIV,F5 Networks Inc (Google Yahoo Earnings Chart)
GGL,Goodman Global Inc (Google Yahoo Earnings Chart)
OI,Owens Illinois Inc (Google Yahoo Earnings Chart)
OMTR,Omniture Inc (Google Yahoo Earnings Chart)
RVBD,Riverbed Technologies Inc (Google Yahoo Earnings Chart)
SQNM,Sequenom Inc (Google Yahoo Earnings Chart)
TNH,Terra Nitrogen Co L.P. (Google Yahoo Earnings Chart)
VDSI,Vasco Data Security Intl (Google Yahoo Earnings Chart)
WFR,Memc Electronic Material (Google Yahoo Earnings Chart)


Out of this possible buys are:
FFIV, TNH, WFR, DLX, OMTR

Bullish Multi Year Leaders
10 stocks in this list. This is the list to watch closely.
AAPL,Apple Inc (Google Yahoo Earnings Chart)
CMI,Cummins Inc (Google Yahoo Earnings Chart)
FFIV,F5 Networks Inc (Google Yahoo Earnings Chart)
ICLR,Icon Plc Ads (Google Yahoo Earnings Chart)
IFSIA,Interface Inc Cl A (Google Yahoo Earnings Chart)
TGI,Triumph Group Inc (Google Yahoo Earnings Chart)
TISI,Team Inc (Google Yahoo Earnings Chart)
TNH,Terra Nitrogen Co L.P. (Google Yahoo Earnings Chart)
VDSI,Vasco Data Security Intl (Google Yahoo Earnings Chart)
WFR,Memc Electronic Material (Google Yahoo Earnings Chart)


Out of this possible buys are:
FFIV, ICLR, WFR, TNH

Bullish 2 year IPO
These stocks take worst beatings during market corrections. The charts will look horrible. But many rally leaders come from such neglected stocks once a new bull leg starts.

ACA,ACA Capital Holdings Inc (Google Yahoo Earnings Chart)
ADH,Adherex Technologies Inc (Google Yahoo Earnings Chart)
BIDU,Baidu.com Inc (Google Yahoo Earnings Chart)
DUG,ProShares UltraShort Oil & Gas ETF (Google Yahoo Earnings Chart)
DVW,Covad Communications Group Inc (Google Yahoo Earnings Chart)
EBI,Evergreen International Balanced Income Fund (Google Yahoo Earnings Chart)
EICU,Visicu Inc (Google Yahoo Earnings Chart)
FACE,Physicians Formula Holdings (Google Yahoo Earnings Chart)
FMR,First Mercury Financial Corp (Google Yahoo Earnings Chart)
GGL,Goodman Global Inc (Google Yahoo Earnings Chart)
HBI,Hanesbrand Inc (Google Yahoo Earnings Chart)
HPY,Heartland Payment Systems Inc (Google Yahoo Earnings Chart)
IKAN,Ikanos Communications (Google Yahoo Earnings Chart)
KAD,Arcadia Resources Inc (Google Yahoo Earnings Chart)
KOG,Kodiak Oil & Gas Corp (Google Yahoo Earnings Chart)
MZZ,ProShares UltraShort MidCap400 ETF (Google Yahoo Earnings Chart)
OMTR,Omniture Inc (Google Yahoo Earnings Chart)
OPX,Opteum Inc (Google Yahoo Earnings Chart)
RVBD,Riverbed Technologies Inc (Google Yahoo Earnings Chart)
SDD,ProShares UltraShort Smallcap 600 ETF (Google Yahoo Earnings Chart)
SDS,ProShares UltraShort S&P500 ETF (Google Yahoo Earnings Chart)
SJH,ProShares UltraShort Russell 2000 Value ETF (Google Yahoo Earnings Chart)
SKF,ProShares UltraShort Financials ETF (Google Yahoo Earnings Chart)
SKK,ProShares UltraShort Russell 2000 Growth (Google Yahoo Earnings Chart)
THLD,Threshold Pharmaceuticals (Google Yahoo Earnings Chart)
TWM,ProShares UltraShort Russell 2000 ETF (Google Yahoo Earnings Chart)


Out of these stocks to consider are:
OMTR, FMR, IKAN, HPY AND HBI

Bullish Distressed Stocks

5 stocks in this scan today.
FBR,Friedman Billings Ramsey (Google Yahoo Earnings Chart)
FMTI,Forbes Medi-Tech Inc (Google Yahoo Earnings Chart)
HZO,Marinemax Inc (Google Yahoo Earnings Chart)
NLS,Nautilus Group Inc (the) (Google Yahoo Earnings Chart)
WHI,W Holding Company (Google Yahoo Earnings Chart)


Stocks worth investigating out of these are: FBR and HZO

The markets are at a stage where fresh shorts may not be the best option as such panic often lead to reflex bounces. Best short opportunities will be of weak rallies post such bounce. So I am not going to do second part of this.

Market Monitor

• There is no fear in the market, so we had one of those mildly wild day, where after things becoming a bit ugly early on and continuing ugly till late afternoon, the dip buyers were back at it again and the final numbers don't look bad. With 76 stocks up 4% or more and momo names doing well, this is just a blip in the larger scheme of things. A correction in bull market. Shaking out weak hands. Unless this develops in to something more severe, this is just another correction.

• As to where we are after the correction the Dow and S&P will be down just around 5% down and Russell is around 10% down.

• I am sure it did not feel that way while it happened. Those who were positioned wrong and over leveraged must have taken large losses. But that is what this game is about. Wall Street is a mechanism to transfer money from less skilled speculators and investors to the more skilled one.
  
• Now we are set up for a reflex rally and going by the markets last few years record it might be a rally which gives no chance to enter again. More realistically, we will have few weeks to months of high uncertainty .
• Corrections consist of two phases, rapid selling and slow methodical selling. The rapid selling phase is what we saw till now. Once this is over certain sectors and stocks which have topped out, start their slow methodical move down. While this is happening, another set of stock start their slow journey to take on new leadership. So I will be actively looking for new emerging leadership themes over next few weeks.

Panic Buy

Quiet, weak markets are good to sell. They ordinarily develop into declining markets. But when a market has gone through the stages of quiet and weak to active and declining, then on semi-panic or panic, it should be bought freely.

Speculation As Fine Art by Dickson Watts

So now we finally have some panic. While this panic is buyable, unless you are skilled and very confident of what you are doing, I see no rush to buy. Any rally, if it starts from here will have enough time to offer buying opportunities. Also if you see dip buyers and others getting too active, it is most likely that after a weak rally there will be another down move. As of now I still see lots of bullishness and people still holding on to momo names. So probably it will take couple of more scares for the market to put meaningful low. Low risk buy opportunities will appear after few weeks.

Update: With buyers rushing in to buy and the final numbers looking not as scary as they looked around 2:30, this move may have more downside after attempts at bounce.There is still no real fear in the market

Do you want to buy dips now

Now finally you see some mild fear scaring the dip buyers and stubborn bulls. You want to see people too scared to carry any position overnight.

In search of new leadership

Whenever the next leg starts after this mild carnage, new leadership will emerge. The stocks which were leading the rally are toast now. They will take lot of time to put together another rally. Those which have gone below 25% of their recent high will probably take months to repair the damage. Most will not come back.

After every correction, new leadership emerges silently. Airlines took off in early part of the rally, solar plays followed, then after a correction agricultural related industry took off. Which was followed by shipping. So the next phase will bring new leaders. One has to quickly spot the emerging leadership and capitalize. Most speculators make the mistake of clinging on to old leaders are expecting them to start rallying again. No amount of Viagra can get those things moving again.

If you are following any of the method like Double Trouble, IBD 200 or Multi Year Leaders, all these list will undergo lot of churn with new leaders making their way to the list. Episodic Pivots list is the list to keep a very close eye on after such corrections. New leaders often burst out with major price and volume moves. EP captures them all. Another good place to find emerging leadership is by going through the stocks up 25% or more in month.

Time to start building buy lists is now. Such panicky action often leads to sellers exhaustion and markets like these can turn on dime and lead to moonshot rallies.

Market Monitor Intraday Update

As of now for the first time in months the 65 days bullish to bearish ratio has flipped. You can see the amount of damage just few days of selling has done to market leadership.
But there is still lot of bullishness. You want to see less than 39 (now 45) figure on the 4% bullish side. You don't want stocks like AAPL holding on to their gain. You want to see a complete sea of red on the tape with less than 10 stocks up 4% plus. But we are getting there. This is good action. This will lead to good tradable rally in near future. The problem is most will be shit scared by then and probably miss it.

Later: Look for new leadership after the carnage

Where are the dip buyers

This is the kind of oxygen sucking action you want to see. Attempts at dip buying are quickly snubbed by programs and borgs which just keep pressing sell orders. Collars are in effect in market, so probably more selling will happen.

Context is important, we are witnessing a correction after many months of rallies, so there is no need to run and buy it. The objective should be to protect profit earned during the bull move.

Now this is the action which will lead to meaningful bottom in few weeks . What you should do is take your 10 to 25% profits on shorts while the selling continues, abandon shorts which have not worked and start preparing for next phase. Keep cash and buy list ready.

First hint of panic and fear

We see first hint of panic today. Yesterday morning the dip buyers were so complacent and bold that we were already up big time by market open. So the strength quickly faded. If the panic and fear last a little today, then sentiment will start changing. That kind of market weakness and panic is buy able.

Market Monitor

• The dip buyers tried hard, very hard yesterday to put a meaningful rally together. Each attempt was followed by selling.
• Numbers speak for themselves. Look at 65 days number, they continue to deteriorate. They are at 652/441 levels compared to 912/292 level and show no sign of stabilization as of now.
• When enough selling happens and the month 50% plus figures start heading towards 5 then might be time to look at few buy opportunities.
• All market tracking systems should be looked at as a part of larger trading framework. If your trade timings are in minutes, your perspective is different. But Market Monitor is primarily for intermediate term trading. The dip buyers in intra day frameworks are small moves chasers, looking for .2 and .3% moves, you should not get affected by their interpretations on market.
• Volatile market conditions will continue and many of the breakouts will retrace, so I see not much point in chasing any breakouts at this stage. Things will change if I see 300 plus day on long side.
  

Opportunity Buffet Part 2

PCR, Perini Corp

That sums up the story of lat few days and shows the danger in this market. They are falling from the heights. In stock after stock and sector after sector the high fliers are taking it on chin. If you were not careful and late to get in to cash, you would have witnessed a large drawdown in few days or ended up giving up lot of open profit. After couple of painful hits like these in my early years, I developed the market monitor methodology as overall filter to identify possible risky areas. Go back and see my posts on it here and here. It is no fun losing 20% or more of your hard earned profit in few days. When I saw the 20 plus figure on stocks up 50% or more in a month few days ago, I started closing everything and playing only tactically. Market look most tempting and easy to trade at those levels, but that is when the danger is greatest.

ACEL,Alfacell Corporation (Google  Yahoo  Earnings  Chart) 
ADG,Allied Defense Group (the) (Google  Yahoo  Earnings  Chart) 
AMAG,Amag Pharmaceuticals Inc (Google  Yahoo  Earnings  Chart) 
AMIS,Amis Holdings (Google  Yahoo  Earnings  Chart) 
ARTW,Art's-Way Manufacturing (Google  Yahoo  Earnings  Chart) 
ARWR,Arrowhead Research Corp (Google  Yahoo  Earnings  Chart) 
ASFI,Asta Funding Inc (Google  Yahoo  Earnings  Chart) 
ASPM,Aspect Medical Systems (Google  Yahoo  Earnings  Chart) 
ASTI,Ascent Solar Technologies Inc (Google  Yahoo  Earnings  Chart) 
ATMI,Atmi Inc (Google  Yahoo  Earnings  Chart) 
AWC,Alumina Limited (Google  Yahoo  Earnings  Chart) 
AXL,American Axle & Manufact (Google  Yahoo  Earnings  Chart) 
BBW,Build-a-bear Workshop (Google  Yahoo  Earnings  Chart) 
BCR,C.R. Bard Inc (Google  Yahoo  Earnings  Chart) 
BELM,Bell Microproducts Inc (Google  Yahoo  Earnings  Chart) 
BGP,Borders Group Inc (Google  Yahoo  Earnings  Chart) 
BGT,Blackrock Global Fltg Inc (Google  Yahoo  Earnings  Chart) 
BIOS,BioScrip Inc (Google  Yahoo  Earnings  Chart) 
BKHM,Bookham Inc (Google  Yahoo  Earnings  Chart) 
BMI,Badger Meter Inc (Google  Yahoo  Earnings  Chart) 
BTJ,Bolt Technology Corp (Google  Yahoo  Earnings  Chart) 
BTUI,Btu International Inc (Google  Yahoo  Earnings  Chart) 
BUCY,Bucyrus International Inc (Google  Yahoo  Earnings  Chart) 
BUF,Minrad International Inc (Google  Yahoo  Earnings  Chart) 
CBI,Chicago Bridge & Iron Nv (Google  Yahoo  Earnings  Chart) 
CCC,Calgon Carbon Corp (Google  Yahoo  Earnings  Chart) 
CEC,Cec Entertainment Inc (Google  Yahoo  Earnings  Chart) 
CECE,Ceco Environmental Corp (Google  Yahoo  Earnings  Chart) 
CERN,Cerner Corp (Google  Yahoo  Earnings  Chart) 
CHRW,C.H. Robinson Worldwide (Google  Yahoo  Earnings  Chart) 
CMTY,Community Banks Mlrbg Pa (Google  Yahoo  Earnings  Chart) 
CNH,Cnh Global Nv (Google  Yahoo  Earnings  Chart) 
CNIC,Copernic Inc Common Stock (Google  Yahoo  Earnings  Chart) 
COHU,Cohu Inc (Google  Yahoo  Earnings  Chart) 
CRI,Carter Holdings Inc (Google  Yahoo  Earnings  Chart) 
CSCD,Cascade Microtech (Google  Yahoo  Earnings  Chart) 
CVG,Convergys Corp (Google  Yahoo  Earnings  Chart) 
CVGI,Commercial Vehicle Group Inc (Google  Yahoo  Earnings  Chart) 
CVTI,Covenant Transportation Group (Google  Yahoo  Earnings  Chart) 
CXG,CNX Gas Corp (Google  Yahoo  Earnings  Chart) 
CXZ,Crosshair Exploration (Google  Yahoo  Earnings  Chart) 
CYD,China Yuchai Int Ltd (Google  Yahoo  Earnings  Chart) 
DAR,Darling International (Google  Yahoo  Earnings  Chart) 
DCGN,Decode Genetics Inc (Google  Yahoo  Earnings  Chart) 
DESC,Distributed Energy Systems (Google  Yahoo  Earnings  Chart) 
DNN,Denison Mines CP (Google  Yahoo  Earnings  Chart) 
DROOD,DRD Gold Ltd Adr (Google  Yahoo  Earnings  Chart) 
DRYS,Dryships (Google  Yahoo  Earnings  Chart) 
DVW,Covad Communications Group Inc (Google  Yahoo  Earnings  Chart) 
EBI,Evergreen International Balanced Income Fund (Google  Yahoo  Earnings  Chart) 
EDN,Empresa Distribuildora Comer (Google  Yahoo  Earnings  Chart) 
ENG,Englobal Corp (Google  Yahoo  Earnings  Chart) 
ENWV,Endwave Corporation (Google  Yahoo  Earnings  Chart) 
EPIC,Epicor Software Corp (Google  Yahoo  Earnings  Chart) 
EPIX,Epix Pharmaceuticals Inc (Google  Yahoo  Earnings  Chart) 
ESMC,Escalon Medical Corp (Google  Yahoo  Earnings  Chart) 
FLML,Flamel Technologies Sa (Google  Yahoo  Earnings  Chart) 
FRM,Furmanite Corp (Google  Yahoo  Earnings  Chart) 
FSTR,L.B. Foster Co Cl A (Google  Yahoo  Earnings  Chart) 
GETI,Gentek Inc (Google  Yahoo  Earnings  Chart) 
GGAL,Grupo Financiero Galicia (Google  Yahoo  Earnings  Chart) 
GGC,Georgia Gulf Corp (Google  Yahoo  Earnings  Chart) 
GLW,Corning Inc (Google  Yahoo  Earnings  Chart) 
GPCB,GPC Biotech AG (Google  Yahoo  Earnings  Chart) 
HAYZ,Hayes Lemmerz International Inc (Google  Yahoo  Earnings  Chart) 
HDNG,Hardinge Inc (Google  Yahoo  Earnings  Chart) 
HMB,Homebanc Corp (Google  Yahoo  Earnings  Chart) 
HOKU,Hoku Scientific Inc (Google  Yahoo  Earnings  Chart) 
HRSH,Hirsch International Corp Class A (Google  Yahoo  Earnings  Chart) 
HTGC,Hercules Technology Growth Capital Inc (Google  Yahoo  Earnings  Chart) 
HURN,Huron Consulting Group Inc (Google  Yahoo  Earnings  Chart) 
ICO,International Coal Group Inc (Google  Yahoo  Earnings  Chart) 
IDMI,IDM Pharma Inc (Google  Yahoo  Earnings  Chart) 
IESC,Integrated Electrical Services Inc (Google  Yahoo  Earnings  Chart) 
ILE,Isolagen Inc (Google  Yahoo  Earnings  Chart) 
IMGN,Immunogen Inc (Google  Yahoo  Earnings  Chart) 
IOC,Interoil Corporation (Google  Yahoo  Earnings  Chart) 
IOTN,Ionatron Inc (Google  Yahoo  Earnings  Chart) 
IPAR,Inter Parfums Inc (Google  Yahoo  Earnings  Chart) 
JADE,Lj Internat Inc (Google  Yahoo  Earnings  Chart) 
JAKK,Jakks Pacific Inc (Google  Yahoo  Earnings  Chart) 
JAV,Javelin Pharmaceuticals Inc (Google  Yahoo  Earnings  Chart) 
JMBA,Jamba Inc (Google  Yahoo  Earnings  Chart) 
JOYG,Joy Global Inc (Google  Yahoo  Earnings  Chart) 
KHD,Khd Humboldt Wedag Intl Ltd (Google  Yahoo  Earnings  Chart) 
KMT,Kennametal Inc (Google  Yahoo  Earnings  Chart) 
LEA,Lear Corp (Google  Yahoo  Earnings  Chart) 
MBRK,Middlebrook Pharma (Google  Yahoo  Earnings  Chart) 
MCGC,Mcg Capital (Google  Yahoo  Earnings  Chart) 
MDII,Midi Inc (Google  Yahoo  Earnings  Chart) 
MDTH,Medcath Corp (Google  Yahoo  Earnings  Chart) 
MEA,Metalico Inc (Google  Yahoo  Earnings  Chart) 
MED,Medifast Inc (Google  Yahoo  Earnings  Chart) 
MEH,Midwest Express Holding (Google  Yahoo  Earnings  Chart) 
MERC,Mercer Internat Inc Sbi (Google  Yahoo  Earnings  Chart) 
MFRI,Mfri Inc (Google  Yahoo  Earnings  Chart) 
MLNX,Mallanoc Technologies Ltd Ord (Google  Yahoo  Earnings  Chart) 
MOBE,Mobility Electronics (Google  Yahoo  Earnings  Chart) 
MXE,Mexico Equity & Income (Google  Yahoo  Earnings  Chart) 
NCZ,Nicholas Applegate Conv&incm (Google  Yahoo  Earnings  Chart) 
NGA,North American Galvanizing & Coatings Inc (Google  Yahoo  Earnings  Chart) 
NNBR,Nn Inc (Google  Yahoo  Earnings  Chart) 
NRP,Natural Resource Partners (Google  Yahoo  Earnings  Chart) 
NTRI,NutriSystem Inc (Google  Yahoo  Earnings  Chart) 
OAKF,Oak Hill Financial Inc (Google  Yahoo  Earnings  Chart) 
OMX,Officemax Inc (Google  Yahoo  Earnings  Chart) 
OPTM,Optium Corp (Google  Yahoo  Earnings  Chart) 
PCAR,Paccar Inc (Google  Yahoo  Earnings  Chart) 
PCCC,Pc Connection Inc (Google  Yahoo  Earnings  Chart) 
PCR,Perini Corp (Google  Yahoo  Earnings  Chart) 
PCS,Metropcs Communications Inc (Google  Yahoo  Earnings  Chart) 
PED,Smartpros Ltd (Google  Yahoo  Earnings  Chart) 
PFCB,P F Chang's China Bistro (Google  Yahoo  Earnings  Chart) 
PMU,Pacific Rim Mining Corp (Google  Yahoo  Earnings  Chart) 
PNCL,Pinnacle Airlines (Google  Yahoo  Earnings  Chart) 
PNRA,Panera Bread Co Cl A (Google  Yahoo  Earnings  Chart) 
POP,Pope & Talbot Inc (Google  Yahoo  Earnings  Chart) 
PRAA,Portfolio Recovery Assoc (Google  Yahoo  Earnings  Chart) 
PRXI,Premier Exhibitions Inc (Google  Yahoo  Earnings  Chart) 
PTT,Vcg Holding Copr (Google  Yahoo  Earnings  Chart) 
PXLW,Pixelworks Incorporated (Google  Yahoo  Earnings  Chart) 
QXM,Qiao Xing Mobile Com (Google  Yahoo  Earnings  Chart) 
RDNT,RadNet Inc. (Google  Yahoo  Earnings  Chart) 
RES,RPC Inc (Google  Yahoo  Earnings  Chart) 
RNT,Aaron Rents Inc (Google  Yahoo  Earnings  Chart) 
RTI,Rti Internat Metal Inc (Google  Yahoo  Earnings  Chart) 
RZ,Raser Technologies Inc (Google  Yahoo  Earnings  Chart) 
SATC,Satcon Technology Corp (Google  Yahoo  Earnings  Chart) 
SBCF,Seacoast Banking Cp Fl (Google  Yahoo  Earnings  Chart) 
SBSA,Spanish Brdcstng Sys A (Google  Yahoo  Earnings  Chart) 
SGR,Shaw Group Inc (The) (Google  Yahoo  Earnings  Chart) 
SI,Siemens Aktien (Google  Yahoo  Earnings  Chart) 
SKX,Skechers Usa Inc (Google  Yahoo  Earnings  Chart) 
SNCR,Synchronoss Technologies Inc (Google  Yahoo  Earnings  Chart) 
SNHY,Sun Hydraulics Corp (Google  Yahoo  Earnings  Chart) 
SPAR,Spartan Motors Inc (Google  Yahoo  Earnings  Chart) 
SPC,Spectrum Brands Inc (Google  Yahoo  Earnings  Chart) 
SPPI,Spectrum Pharm Inc (Google  Yahoo  Earnings  Chart) 
STEC,Stec Inc (Google  Yahoo  Earnings  Chart) 
STM,Stmicroelectronics Nv (Google  Yahoo  Earnings  Chart) 
SUSQ,Susquehanna Bancshares (Google  Yahoo  Earnings  Chart) 
TARR,Tarragon Corp (Google  Yahoo  Earnings  Chart) 
TDSC,3d Systems Corp (Google  Yahoo  Earnings  Chart) 
TGEN,Targeted Genetics Cp (Google  Yahoo  Earnings  Chart) 
TWIN,Twin Disc Inc (Google  Yahoo  Earnings  Chart) 
TXCC,Transwitch Corp (Google  Yahoo  Earnings  Chart) 
UCFC,United Community Finan (Google  Yahoo  Earnings  Chart) 
USEG,U.S. Energy Corp Wyo (Google  Yahoo  Earnings  Chart) 
USEY,U.S. Energy Systems Inc (Google  Yahoo  Earnings  Chart) 
USG,Usg Corp (Google  Yahoo  Earnings  Chart) 
VOLC,Volcano Corp (Google  Yahoo  Earnings  Chart) 
VOLV,Ab Volvo Adr (Google  Yahoo  Earnings  Chart) 
VRTB,Vestin Realty Mortgage II Inc (Google  Yahoo  Earnings  Chart) 
VSGN,Vasogen Inc (Google  Yahoo  Earnings  Chart) 
VSR,Versar Inc (Google  Yahoo  Earnings  Chart) 
WBSN,Websense Inc (Google  Yahoo  Earnings  Chart) 
WOLF,Great Wolf Resorts (Google  Yahoo  Earnings  Chart) 
WPP,Wausau Paper Corp (Google  Yahoo  Earnings  Chart) 
WSBC,Wesbanco Inc (Google  Yahoo  Earnings  Chart) 
WSII,Waste Services Inc (Google  Yahoo  Earnings  Chart) 
WVCM,Wavecom Sa Adr (Google  Yahoo  Earnings  Chart) 
XRX,Xerox Corp (Google  Yahoo  Earnings  Chart) 
ZBRA,Zebra Technologies Cp A (Google  Yahoo  Earnings  Chart) 
ZHNE,Zhone Technologies Inc (Google  Yahoo  Earnings  Chart) 


Go through this list carefully and see stock after stock is falling out of bed. After such action the same stock seldom starts rallying again. It takes time for the stock to regain its momentum. New set of stocks take on leadership and the old favorite seldom recover. Notice these moves are happening at top of the range not at bottom. When there is panic and stock is at bottom of range, then one can buy as it indicates irrational selling and seller exhaustion, but in these top of the range breakouts any ralies just fail and provide good opportunity to put shorts.

Out of this the stocks to focus on for shorts are:

ARTW ASTI ATMI AWC BBW BELM BIOS BMI BTJ BTUI CBI CCC CECE CERN CNH CYD DAR DRYS EDN EPIC ESMC FRM FSTR GGC GLW HDNG HOKU HURN IESC JAKK KHD KMT LEA MDTH MEA MERC MFRI MLNX MXE NNBR NRP OAKF OPTM PCAR PCCC PCR PCS PRAA PRXI RTI RZ SGR SI SNCR SNHY STEC VOLV VRTB VSR WBSN WOLF WVCM XRX ZBRA

I would wait for a small rally to put shorts on most of these.

Opportunity Buffet - Part 1

In my scheme of things it is not a time to chase any long ideas aggressively barring the Episodic Pivot and select earnings candidate. It is time to sit in cash and prepare a buying list for future. Market Monitor is an overall filter on the long strategy and it at thins stage is still not in safe territory.If you are day trader or ultra short term holding swing trader, there are opportunities, but for a longer duration hold, it is risky stage.

So lets look at what is moving up in the market:

Bullish IBD 70 plus EPS
44 stocks out of 119 in the 4% plus universe are from the IBD 70 plus universe.

ABM,Abm Industries Inc (Google Yahoo Earnings Chart)
ACAP,Am Physicians (Google Yahoo Earnings Chart)
ACE,Ace Ltd (Google Yahoo Earnings Chart)
AFL,Aflac Inc (Google Yahoo Earnings Chart)
AMSG,Amsurg Corp Common (Google Yahoo Earnings Chart)
AMZN,Amazon.Com Inc (Google Yahoo Earnings Chart)
ANAD,Anadigics Inc (Google Yahoo Earnings Chart)
ANGO,Angiodynamics (Google Yahoo Earnings Chart)
ANIK,Anika Therapeutics Inc (Google Yahoo Earnings Chart)
BANF,Bancfirst Corp Oklahoma (Google Yahoo Earnings Chart)
BEC,Beckman Coulter Inc (Google Yahoo Earnings Chart)
BID,Sotheby's Holding Cl A (Google Yahoo Earnings Chart)
BIDU,Baidu.com Inc (Google Yahoo Earnings Chart)
BIIB,Biogen Idec Inc (Google Yahoo Earnings Chart)
BLUD,Immucor Inc (Google Yahoo Earnings Chart)
BOBJ,Business Objects S A (Google Yahoo Earnings Chart)
CB,Chubb Corp (Google Yahoo Earnings Chart)
CCRT,Compucredit Corporation (Google Yahoo Earnings Chart)
CKSW,Clicksoftware Technlgies (Google Yahoo Earnings Chart)
CPX,Complete Production Services Inc (Google Yahoo Earnings Chart)
CVO,Cenveo Inc (Google Yahoo Earnings Chart)
DADE,Dade Behring Holdings Inc (Google Yahoo Earnings Chart)
DFG,Delphi Financial Group A (Google Yahoo Earnings Chart)
ECOL,American Ecology Corp (Google Yahoo Earnings Chart)
EXBD,Corporate Exec Board Co (Google Yahoo Earnings Chart)
FMS,Fresenius Medical Ag Co Kgaa (Google Yahoo Earnings Chart)
FTBK,Frontier Financial Corp (Google Yahoo Earnings Chart)
GRMN,Garmin Ltd (Google Yahoo Earnings Chart)
HOS,Hornbeck Offshore Services Inc (Google Yahoo Earnings Chart)
ILMN,Illumina Inc (Google Yahoo Earnings Chart)
JNPR,Juniper Networks (Google Yahoo Earnings Chart)
KAI,Kadant Inc (Google Yahoo Earnings Chart)
LDSH,Ladish Co Inc (Google Yahoo Earnings Chart)
LPHI,Life Partners Inc (Google Yahoo Earnings Chart)
MANH,Manhattan Associates Inc (Google Yahoo Earnings Chart)
NOV,National Oilwell Varco Inc (Google Yahoo Earnings Chart)
PAS,Pepsiamericas Inc (Google Yahoo Earnings Chart)
RFMD,Rf Micro Devices Inc (Google Yahoo Earnings Chart)
RJF,Raymond James Financial (Google Yahoo Earnings Chart)
SEAB,Seabright Insurance Holdings (Google Yahoo Earnings Chart)
SMTL,Semitool Inc (Google Yahoo Earnings Chart)
SNA,Snap-On Inc (Google Yahoo Earnings Chart)
SNWL,Sonicwall Incorporated (Google Yahoo Earnings Chart)
SUPX,Supertex Inc (Google Yahoo Earnings Chart)
TQNT,Triquint Semiconductor (Google Yahoo Earnings Chart)
TSCM,Thestreet.Com (Google Yahoo Earnings Chart)
TTPY,Tomotherapy Inc (Google Yahoo Earnings Chart)
VOCS,Vocus Inc (Google Yahoo Earnings Chart)


Out of this stocks to focus on are:
AFL AMSG AMZN ANAD BEC BID CPX ECOL HOS ILMN LDSH MANH PAS SEAB SNA SNWL VOCS

Bullish Double Trouble

19 stocks in the Double Trouble breakout scans.
ALGN,Align Tech Inc (Google Yahoo Earnings Chart)
ALNY,Alnylam Pharmaceuticals (Google Yahoo Earnings Chart)
AMZN,Amazon.Com Inc (Google Yahoo Earnings Chart)
ANAD,Anadigics Inc (Google Yahoo Earnings Chart)
BID,Sotheby's Holding Cl A (Google Yahoo Earnings Chart)
BIDU,Baidu.com Inc (Google Yahoo Earnings Chart)
BOBJ,Business Objects S A (Google Yahoo Earnings Chart)
CKSW,Clicksoftware Technlgies (Google Yahoo Earnings Chart)
DADE,Dade Behring Holdings Inc (Google Yahoo Earnings Chart)
DCP,DynCorp International Inc (Google Yahoo Earnings Chart)
GEO,Geo Group (The) (Google Yahoo Earnings Chart)
JNPR,Juniper Networks (Google Yahoo Earnings Chart)
LFC,China Life Insurance Company (Google Yahoo Earnings Chart)
LPHI,Life Partners Inc (Google Yahoo Earnings Chart)
MCF,Contango Oil & Gas (Google Yahoo Earnings Chart)
NOV,National Oilwell Varco Inc (Google Yahoo Earnings Chart)
RGR,Sturm Ruger & Co Inc (Google Yahoo Earnings Chart)
VOCS,Vocus Inc (Google Yahoo Earnings Chart)
ZIXI,Zix Corporation (Google Yahoo Earnings Chart)

Out of this stocks to focus on are:
GEO, ANAD, BID, AMZN, DCP and VOCS

Bullish Multi Year Leaders
13 stocks in this scan today.
ALGN,Align Tech Inc (Google Yahoo Earnings Chart)
ALXN,Alexion Pharmaceuticals (Google Yahoo Earnings Chart)
ANAD,Anadigics Inc (Google Yahoo Earnings Chart)
BID,Sotheby's Holding Cl A (Google Yahoo Earnings Chart)
CKSW,Clicksoftware Technlgies (Google Yahoo Earnings Chart)
GEO,Geo Group (The) (Google Yahoo Earnings Chart)
GRMN,Garmin Ltd (Google Yahoo Earnings Chart)
LDSH,Ladish Co Inc (Google Yahoo Earnings Chart)
LFC,China Life Insurance Company (Google Yahoo Earnings Chart)
LPHI,Life Partners Inc (Google Yahoo Earnings Chart)
MCF,Contango Oil & Gas (Google Yahoo Earnings Chart)
PFWD,Phase Forward Inc. (Google Yahoo Earnings Chart)
SII,Smith Internat Inc (Google Yahoo Earnings Chart)


Stocks to focus on in this are:
GEO, ANAD, BID, PFWD, LDSH, ALXN

Bullish Distressed Stock

ALGN,Align Tech Inc (Google Yahoo Earnings Chart)
ALXN,Alexion Pharmaceuticals (Google Yahoo Earnings Chart)
ANAD,Anadigics Inc (Google Yahoo Earnings Chart)
BID,Sotheby's Holding Cl A (Google Yahoo Earnings Chart)
CKSW,Clicksoftware Technlgies (Google Yahoo Earnings Chart)
GEO,Geo Group (The) (Google Yahoo Earnings Chart)
GRMN,Garmin Ltd (Google Yahoo Earnings Chart)
LDSH,Ladish Co Inc (Google Yahoo Earnings Chart)
LFC,China Life Insurance Company (Google Yahoo Earnings Chart)
LPHI,Life Partners Inc (Google Yahoo Earnings Chart)
MCF,Contango Oil & Gas (Google Yahoo Earnings Chart)
PFWD,Phase Forward Inc. (Google Yahoo Earnings Chart)
SII,Smith Internat Inc (Google Yahoo Earnings Chart)


No stock to research from this today.

Bullish 2 Year IPO


15 stocks in this list.
ALGN,Align Tech Inc (Google  Yahoo  Earnings  Chart) 
ALXN,Alexion Pharmaceuticals (Google  Yahoo  Earnings  Chart) 
ANAD,Anadigics Inc (Google  Yahoo  Earnings  Chart) 
BID,Sotheby's Holding Cl A (Google  Yahoo  Earnings  Chart) 
CKSW,Clicksoftware Technlgies (Google  Yahoo  Earnings  Chart) 
GEO,Geo Group (The) (Google  Yahoo  Earnings  Chart) 
GRMN,Garmin Ltd (Google  Yahoo  Earnings  Chart) 
LDSH,Ladish Co Inc (Google  Yahoo  Earnings  Chart) 
LFC,China Life Insurance Company (Google  Yahoo  Earnings  Chart) 
LPHI,Life Partners Inc (Google  Yahoo  Earnings  Chart) 
MCF,Contango Oil & Gas (Google  Yahoo  Earnings  Chart) 
PFWD,Phase Forward Inc. (Google  Yahoo  Earnings  Chart) 
SII,Smith Internat Inc (Google  Yahoo  Earnings  Chart) 


Stocks to focus on:
CPX, SEAB, DCP, VOCS

Keep your nerves

As of now the numbers on 4% breakouts and breakdown I am looking at shows a ratio of 105/ 141. Yet another shakeout move which has not lead to the kind of follow through which normally indicates a down move. This will make the dip buyers bold. Plus if Apple provides the spark with its earnings and gaps up, the cash on sideline will jump in.

Under such circumstances keeping your nerves is critical. Unless you are a day trader the minute by minute gyration should not raise your blood pressure.In my scheme of things both earnings based methods and momentum methods work best after correction. So if I find market stabilizing, jumping in is not a problem. The well set trading conveyor belt churns out opportunities everyday. If one keeps ones nerves and protects capital, there are always opportunities in the market when the volatile phase subsides.

Random Thoughts

• It is more difficult to spot a top than bottom. We know it is top in retrospect.
  
• The top was in making for many months as market idled and breakouts failed. So to say CFC lead to the move, is giving CFC too much importance.
• Management is most bullish at top and most bearish at bottom. Does that apply to homebuilders and CFC.
  
• You don't have to trade like big institutions. Flexibility is individual investors and traders most strength. You can go to cash in jiffy, big speculators take months to build and upload positions.
• You will know when it is time to get back in when Market Monitor starts indicating reversal.
  
• Have you wondered what happens when Prime Ministers and Presidents crowd together for powwow. This incident from Alastair Campbell's latest book will give you the inner dope.
  

  The man (Alastair Campbell) who gave spinning a bad name has just published his diaries, The Blair Years. One story I liked is about an African leader pinching a woman guest’s bottom at a Commonwealth do in Downing Street. After pinching her bum, the man asked the victim who she was. Replied Cherie Blair, "I am the prime minister’s wife." The response of the African leader is not recorded.

  
  and how about this from the same book
  

  A SEXY airgirl sent temperatures soaring as the PM and his aide flew in Australia, swivelling her “perfect bum” towards them, and A JAPANESE businessman told Blair: “The whole of Japan is rooking forward to your erection” in the months before the Labour leader won power. The PM-to-be spluttered as Campbell butted in: “We are hoping for a big one.”

  
  

Opportunity Buffet Part1

This is not an ideal environment to aggressively chase stocks for swing trades also on long side. In few days we will know if the move has more downside. So none of the stocks in these scans are screaming buy, but keeping an eye on what moves up during such corrections gives you an idea about where likely future moves are going to come from.

Bullish IBD 70 plus EPS
13 stocks in this scan today.
ALKS,Alkermes Inc (Google  Yahoo  Earnings  Chart) 
AXE,Anixter International (Google  Yahoo  Earnings  Chart) 
CHKP,Check Point Software Technologies Inc (Google  Yahoo  Earnings  Chart) 
CNC,Centene Corp (Google  Yahoo  Earnings  Chart) 
CPO,Corn Products Intl Inc (Google  Yahoo  Earnings  Chart) 
CRNT,Ceragon Networks Ltd (Google  Yahoo  Earnings  Chart) 
DGII,Digi International Inc (Google  Yahoo  Earnings  Chart) 
JDAS,Jda Software Group Inc (Google  Yahoo  Earnings  Chart) 
MAIL,Incredimail (Google  Yahoo  Earnings  Chart) 
MDTH,Medcath Corp (Google  Yahoo  Earnings  Chart) 
RRST,RRsat Glo Comm Network Ltd Ord (Google  Yahoo  Earnings  Chart) 
UCTT,Ultra Clean Holdings (Google  Yahoo  Earnings  Chart) 
UEIC,Universal Electronics (Google  Yahoo  Earnings  Chart) 


Out of this CHKP and JDAS might be worth watching for later entry.

Bullish Double Trouble
12 stocks in this scan.
CRNT,Ceragon Networks Ltd (Google  Yahoo  Earnings  Chart) 
DGSE,Dgse Companies Inc (Google  Yahoo  Earnings  Chart) 
MAIL,Incredimail (Google  Yahoo  Earnings  Chart) 
MVIS,Microvision Inc (Google  Yahoo  Earnings  Chart) 
NLN,National Lampoon Inc (Google  Yahoo  Earnings  Chart) 
RRST,RRsat Glo Comm Network Ltd Ord (Google  Yahoo  Earnings  Chart) 
TWTI,Third Wave Tech (Google  Yahoo  Earnings  Chart) 
UAUA,UAL Corp (Google  Yahoo  Earnings  Chart) 
UCTT,Ultra Clean Holdings (Google  Yahoo  Earnings  Chart) 
UEIC,Universal Electronics (Google  Yahoo  Earnings  Chart) 
WRLS,Telular Corp (Google  Yahoo  Earnings  Chart) 
XRA,Exeter Resource Corporation (Google  Yahoo  Earnings  Chart) 


Watchlist: MVIS, WRLS

Bullish Multi Year Leaders
AXE is the only stock in this scan.

Bullish Distressed Stock
7 stocks in this scan. None looks interesting.

BUCA,Buca Inc (Google  Yahoo  Earnings  Chart) 
DUSA,Dusa Pharmaceuticals Inc (Google  Yahoo  Earnings  Chart) 
EEEI,Electro Energy Inc (Google  Yahoo  Earnings  Chart) 
NRMX,Neurochem (Google  Yahoo  Earnings  Chart) 
NTN,NTN Buzztime Inc (Google  Yahoo  Earnings  Chart) 
OTD,O2 Diesel Corp (Google  Yahoo  Earnings  Chart) 
QFAB,Quaker Fabric Corp (Google  Yahoo  Earnings  Chart) 


Bullish Two Year IPO
13 stocks in this scan.
ABPI,Accentia BioPharmaceuticals Inc (Google  Yahoo  Earnings  Chart) 
DUG,ProShares UltraShort Oil & Gas ETF (Google  Yahoo  Earnings  Chart) 
MAIL,Incredimail (Google  Yahoo  Earnings  Chart) 
MDF,Metropolitan Health Networks (Google  Yahoo  Earnings  Chart) 
NLN,National Lampoon Inc (Google  Yahoo  Earnings  Chart) 
OMPI,Obagi Medical Products Inc (Google  Yahoo  Earnings  Chart) 
RPB,Republic Property Trust (Google  Yahoo  Earnings  Chart) 
RRST,RRsat Glo Comm Network Ltd Ord (Google  Yahoo  Earnings  Chart) 
SKF,ProShares UltraShort Financials ETF (Google  Yahoo  Earnings  Chart) 
SRS,ProShares UltraShort Real Estate ETF (Google  Yahoo  Earnings  Chart) 
TWM,ProShares UltraShort Russell 2000 ETF (Google  Yahoo  Earnings  Chart) 
UAUA,UAL Corp (Google  Yahoo  Earnings  Chart) 
XRA,Exeter Resource Corporation (Google  Yahoo  Earnings  Chart) 

Opportunity Buffet Part 2

So far in this 4 years plus rally there have been few corrections which have really proven to be meaningful and had follow through. At this stage we do not know if this will have follow through, but going by the action so far, it looks like this correction has more downside ahead of it. Obviously there will be attempts at bounce. But once the worm turns, every bounce offers a low risk opportunity to put on short position on former leaders.

Because of the sheer number of stocks in each scan, I am not going scan by scan, but just putting together a short watch list for probable good shorts.

1. GOOG : This former market leader gapped down post earning. It has a good catalyst of earning miss ,slowing earnings growth, rising cost, and out of control hiring. Since its 300% plus move in 2006, it has been a laggard and has gone up on low volume coming in to the earnings. It is consolidating here near the gap low and might have a weak rally, but the most probable move is down.
2. AAPL : This current market leader has sky high expectations. Recent magazine cover. Analyst falling over each other to praise it. Heavily owned by institutions. It is the bell cow of this market. If the market has 10% correction, this stock will also breakdown. With earnings due today, one will have to watch for the reaction. But if this stock breaks down, you know market will have meaningful correction. It might be a buy after 20 to 25% correction.
   
3. MICC : This is clear short. After a long rally, had a earning miss.
   
4. NTRI: Another former leader which had a weak rally this year. Catalyst earnings reduction. Again will have to wait for a small pullback to put position as this is gapping down today.
   
5. HANS : Another former market leader primed for a fall.
   
6. CRDN: Gap down after long up move.
   
7. CTSH: Another former leader primed for down move.
8. RTI : Another former market leader
9. CPA: Former rally leader
10. AKAM: Former rally leader

In addition to this on your watch list you can put all stocks above 40 in Double Trouble. If the market correction follows through one by one all these stocks will correct up to 25%. Some of them are in early stages of rollover. That is how the 472 number will come down to 200.

WATCHLIST FROM DOUBLE TROUBLE

AAPL,Apple Inc (Google Yahoo Earnings Chart)
ACH,Aluminum Corp China (Google Yahoo Earnings Chart)
AHD,Atlas Pipeline Holdings LP (Google Yahoo Earnings Chart)
AKH,Air France KLM (Google Yahoo Earnings Chart)
AKS,Ak Steel Holding Corp (Google Yahoo Earnings Chart)
AL,Alcan Inc. (Google Yahoo Earnings Chart)
AMX,America Movil S A B De C V (Google Yahoo Earnings Chart)
AMZN,Amazon.Com Inc (Google Yahoo Earnings Chart)
AP,Ampco-Pittsburgh Corp (Google Yahoo Earnings Chart)
AQNT,Aquantive Inc (Google Yahoo Earnings Chart)
ASTE,Astec Industries (Google Yahoo Earnings Chart)
AVT,Avnet Inc (Google Yahoo Earnings Chart)
BAP,Credicorp Ltd (Google Yahoo Earnings Chart)
BCSI,Blue Coat Systems Inc (Google Yahoo Earnings Chart)
BEAV,Be Aerospace Inc (Google Yahoo Earnings Chart)
BGC,General Cable Corp (Google Yahoo Earnings Chart)
BIDU,Baidu.com Inc (Google Yahoo Earnings Chart)
BOBJ,Business Objects S A (Google Yahoo Earnings Chart)
BRP,Brasil Telecom Partic Sa (Google Yahoo Earnings Chart)
BTJ,Bolt Technology Corp (Google Yahoo Earnings Chart)
BWLD,Buffalo Wild Wings (Google Yahoo Earnings Chart)
CAE,Cascade Corp (Google Yahoo Earnings Chart)
CAF,Morgan Stanley China A Share Fund` Inc (Google Yahoo Earnings Chart)
CENX,Century Aluminum Company (Google Yahoo Earnings Chart)
CF,CF Industries Holdings Inc (Google Yahoo Earnings Chart)
CHAP,Chaparral Steel Company (Google Yahoo Earnings Chart)
CHE,Chemed Corp (Google Yahoo Earnings Chart)
CHL,China Mobile Ltd (Google Yahoo Earnings Chart)
CLF,Cleveland-Cliffs Inc (Google Yahoo Earnings Chart)
CMI,Cummins Inc (Google Yahoo Earnings Chart)
CNH,Cnh Global Nv (Google Yahoo Earnings Chart)
CPA,Copa Holdings S.A. (Google Yahoo Earnings Chart)
CPY,Cpi Corp (Google Yahoo Earnings Chart)
CROX,Crocs Inc (Google Yahoo Earnings Chart)
CTV,Commscope Inc (Google Yahoo Earnings Chart)
DECK,Deckers Outdoor Corp (Google Yahoo Earnings Chart)
DRYS,Dryships (Google Yahoo Earnings Chart)
DWSN,Dawson Geophysical Co (Google Yahoo Earnings Chart)
DXPE,Dxp Enterprises Inc (Google Yahoo Earnings Chart)
EDU,New Oriental Edu And Tech Corp (Google Yahoo Earnings Chart)
EMS,Emergency Medical Services L.P. (Google Yahoo Earnings Chart)
ENR,Energizer Holdings (Google Yahoo Earnings Chart)
EVEP,EV Energy Partners LP (Google Yahoo Earnings Chart)
FFIV,F5 Networks Inc (Google Yahoo Earnings Chart)
FLIR,Flir Systems Inc (Google Yahoo Earnings Chart)
FSLR,First Solar Inc (Google Yahoo Earnings Chart)
FWLT,Foster Wheeler Ltd (Google Yahoo Earnings Chart)
GES,Guess? Incorporated (Google Yahoo Earnings Chart)
GLDN,Golden Telecom Inc (Google Yahoo Earnings Chart)
GLF,Gulfmark Offshore Inc (Google Yahoo Earnings Chart)
GMCR,Green Mountain Coffee Roasters (Google Yahoo Earnings Chart)
GME,Gamestop Corp (Google Yahoo Earnings Chart)
GNK,Genco Shipping & Trading Ltd (Google Yahoo Earnings Chart)
HAYN,Haynes International Inc. (Google Yahoo Earnings Chart)
HPGP,Hiland Holdings Go Units (Google Yahoo Earnings Chart)
HURC,Hurco Companies Inc (Google Yahoo Earnings Chart)
HURN,Huron Consulting Group Inc (Google Yahoo Earnings Chart)
IBN,Icici Bank Ltd Ads (Google Yahoo Earnings Chart)
ICA,Empresas ICA Sociedad Controladora SA de CV (Google Yahoo Earnings Chart)
ICE,Intercontinental Exchange Inc (Google Yahoo Earnings Chart)
ISRG,Intuitive Surgical Inc (Google Yahoo Earnings Chart)
JCG,J Crew Group Inc (Google Yahoo Earnings Chart)
KCI,Kinetic Concepts Inc (Google Yahoo Earnings Chart)
KHD,Khd Humboldt Wedag Intl Ltd (Google Yahoo Earnings Chart)
LBTYA,Liberty Global Inc Class A (Google Yahoo Earnings Chart)
LBTYK,Liberty Global Inc Class C (Google Yahoo Earnings Chart)
LEAP,Leap Wireless International Inc (Google Yahoo Earnings Chart)
LFC,China Life Insurance Company (Google Yahoo Earnings Chart)
LFL,Lan Chile Sa (Google Yahoo Earnings Chart)
LPHI,Life Partners Inc (Google Yahoo Earnings Chart)
LYO,Lyondell Chemical Co (Google Yahoo Earnings Chart)
MA,MasterCard Inc (Google Yahoo Earnings Chart)
MBT,Mobile Telesys Ojsc Ads (Google Yahoo Earnings Chart)
MDR,Mcdermott Internat Inc (Google Yahoo Earnings Chart)
MFW,M&F Worldwide Corp (Google Yahoo Earnings Chart)
MGM,MGM MIRAGE Inc (Google Yahoo Earnings Chart)
MICC,Millicom Intl Cellular Sa (Google Yahoo Earnings Chart)
MT,Arcelor Mittal (Google Yahoo Earnings Chart)
MTL,Mechel Steel Group OAO ADS (Google Yahoo Earnings Chart)
MTW,Manitowoc Co Inc (Google Yahoo Earnings Chart)
MWP,Markwest Hydrocarbon Inc (Google Yahoo Earnings Chart)
MXE,Mexico Equity & Income (Google Yahoo Earnings Chart)
NAFC,Nash-finch Co (Google Yahoo Earnings Chart)
NCTY,The9 Limited (Google Yahoo Earnings Chart)
NILE,Blue Nile (Google Yahoo Earnings Chart)
NOV,National Oilwell Varco Inc (Google Yahoo Earnings Chart)
NVDA,NVIDIA Corporation (Google Yahoo Earnings Chart)
NVT,Navteq Corp (Google Yahoo Earnings Chart)
OPY,Oppenheimer Hldgs Inc (Google Yahoo Earnings Chart)
PCLN,Priceline.com Inc (Google Yahoo Earnings Chart)
PCP,Precision Castparts Corp (Google Yahoo Earnings Chart)
PCR,Perini Corp (Google Yahoo Earnings Chart)
PCU,Southern Copper Corp (Google Yahoo Earnings Chart)
PKX,Posco (Google Yahoo Earnings Chart)
POT,Potash Cp Saskatchewan (Google Yahoo Earnings Chart)
RBN,Robbins & Myers Inc (Google Yahoo Earnings Chart)
RCI,Rogers Commun B Non-Votg (Google Yahoo Earnings Chart)
RHA,Rhodia Ads (Google Yahoo Earnings Chart)
RIMM,Research In Motion Ltd (Google Yahoo Earnings Chart)
RIO,Companhia Vale Do Rio Doce (Google Yahoo Earnings Chart)
RL,Polo Ralph Lauren Corp (Google Yahoo Earnings Chart)
ROLL,RBC Bearings Inc (Google Yahoo Earnings Chart)
ROS,Rostelecom (Google Yahoo Earnings Chart)
RTI,Rti Internat Metal Inc (Google Yahoo Earnings Chart)
RTRSY,Reuters Group Plc Adr (Google Yahoo Earnings Chart)
RVBD,Riverbed Technologies Inc (Google Yahoo Earnings Chart)
SBS,Companhia De Saneamento B (Google Yahoo Earnings Chart)
SGR,Shaw Group Inc (The) (Google Yahoo Earnings Chart)
SID,Companhia Siderurgica Nacional S.A. (Google Yahoo Earnings Chart)
SINA,Sina Corp (Google Yahoo Earnings Chart)
SPSS,Spss Inc (Google Yahoo Earnings Chart)
SPWR,SunPower Corp (Google Yahoo Earnings Chart)
SQA--A,Sequa Corp Cl A (Google Yahoo Earnings Chart)
TEX,Terex Corp (Google Yahoo Earnings Chart)
TNH,Terra Nitrogen Co L.P. (Google Yahoo Earnings Chart)
TPL,Texas Pacific Land Trust (Google Yahoo Earnings Chart)
TSL,Trina Solar Ltd. (Google Yahoo Earnings Chart)
TWIN,Twin Disc Inc (Google Yahoo Earnings Chart)
UAUA,UAL Corp (Google Yahoo Earnings Chart)
UBB,Unibanco Uniao De Bancos (Google Yahoo Earnings Chart)
VIP,Vimpel Communication Ads (Google Yahoo Earnings Chart)
VLCM,Volcom Inc (Google Yahoo Earnings Chart)
VMSI,Ventana Medical Systems (Google Yahoo Earnings Chart)
VSEA,Varian Semiconductor Equipment Associates Inc (Google Yahoo Earnings Chart)
VSEC,Vse Corp (Google Yahoo Earnings Chart)
WBD,Wimm Bill Dann Foods Ojsc (Google Yahoo Earnings Chart)
WCG,Wellcare Health Plans Inc (Google Yahoo Earnings Chart)
WFR,Memc Electronic Material (Google Yahoo Earnings Chart)
WGOV,Woodward Governor Co (Google Yahoo Earnings Chart)
WNR,Western Refining Inc (Google Yahoo Earnings Chart)
XNPT,XenoPort Inc (Google Yahoo Earnings Chart)
YZC,Yanzhou Coal Mining Co (Google Yahoo Earnings Chart)
ZOLT,Zoltek Companies Inc (Google Yahoo Earnings Chart)


The ideal low risk short will appear in next one or two weeks once they break down and have weak rally or form bear flags.

Market Monitor

• After trying the patience and after many false moves the selling arrived in full force yesterday. With 635 stocks down for the day the damage was wide spread.
  
• As IBD mentioned in its "The Big Picture" section the IBD kind leaders were also down yesterday. Even a stock like AAPL was down . When you see leaders of the rally experiencing down moves, the safest bet is cash and sideline.
  
• If you are following the IBD number of distribution days in specified time Index model, it has turned bearish on most Indexes barring Dow. Dow has 3 distribution days while other Indexes have 4 plus.
  
• This correction was months in making with sector after sector undergoing slow breakdown. But as usual there will be bounce and attempts at bounce. The best shorting opportunities will present once such bounce attempt create ideal low volume creeping rallies.
  
• Now lets look at the Market Monitor numbers, the 65 day ratio had sharp deterioration and you will get confirmation of bear move when it flips with more numbers on down side. On the 50% plus in month numbers we are looking for 3-5 numbers from current 17 to get bullish. On 100% plus numbers , if this develops in to real correction we are looking at numbers below 200. That also tells you where to look for opportunities on short side. Leaders breaking down, is the trade to look for from swing trading perspective.

IBD 200

Pradeep Comment:

Skytrader trades the IBD 200 based system. He would be regularly posting his trade selections and comments on the stocks breaking out of the list and which stocks he is likely to pick from it for his trading. This will be daily post by Sky.

Skytrader is based in Australia, so timings are not always suitable for answering the questions. So factor that in to your expectations when you comment and expect a reply.

CRNT (Google Yahoo Earnings Chart)
JDAS (Google Yahoo Earnings Chart)
RRST (Google Yahoo Earnings Chart)

Out of these 3, only JDAS qualifies for 10% plus weakness. However earnings report came out for this stock today. So no buyable candidates today.

Episodic Pivot News Headlines

Headlines
CHKP | Catalyst: Earnings Acceleration | Float: (mil) | EPS Rtg: 73 | RS: 79
Check Point Sftwr beats by $0.02, ex items profit climbs 6%

DPZ | Catalyst: Earnings Acceleration | Float: 62 (mil) | EPS Rtg: 48 | RS: 85
Domino's Pizza beats by $0.04, ex items

GGBM | Catalyst: New Contract | Float: 4 (mil) | EPS Rtg: | RS:
GigaBeam Announces Expansion of Global Reach with Repeat Purchase Order From Key South African Reseller

JDAS | Catalyst: Earnings Acceleration | Float: 28 (mil) | EPS Rtg: 87 | RS: 92
JDA Software quarterly profit quadruples; shares rise

KYPH | Catalyst: Other | Float: 45 (mil) | EPS Rtg: | RS:
S&P: Kyphon to replace Triad on MidCap 400

MVIS | Catalyst: New Contract | Float: 43 (mil) | EPS Rtg: 33 | RS: 98
Microvision Signs Agreement with Motorola to Develop Pico Projector Display for Mobile Applications

RPB | Catalyst: Takeover, merger etc | Float: 25 (mil) | EPS Rtg: 22 | RS: 82
Republic Property shares jump on merger pact with Liberty

TRI | Catalyst: Other | Float: 88 (mil) | EPS Rtg: | RS:
S&P: Kyphon to replace Triad on MidCap 400

TWTI | Catalyst: Other | Float: 42 (mil) | EPS Rtg: 16 | RS: 97
Third Wave Prevails in Claim Construction Proceeding

UCTT | Catalyst: Earnings Acceleration | Float: 19 (mil) | EPS Rtg: 91 | RS: 82
Ultra Clean Holdings Q2 earnings rise

UNCL | Catalyst: Sales Acceleration | Float: 18 (mil) | EPS Rtg: | RS:
MRU Holdings, Inc. Announces Fiscal 2007 Loan Origination Volume, Year on Year Increase of 296%

WRLS | Catalyst: Earnings Acceleration | Float: 16 (mil) | EPS Rtg: 56 | RS: 98
Telular announces Q3 EPS of $0.02 vs ($0.37) in 3Q06; revs rose 11% YoY to $21.8 mln - no estimate Reaches Profitability in the Third Quarter of 2007


No headlines
AKZOY
OCNF

10 out of 635

With 635 stocks in the short scan, you have so many opportunities. One of the approach is to short one of the Index like Russell Index and stay short it till it takes out high. The small cap was showing divergences for some time. The other is what many have said in comments, use a ETF to short.

Personally I am out of market and will wait for opportunities on long side to set up. It also gives me R&D times on some things I have been tinkering around with. Plus it fits in with my vacation plans.

For tomorrow I will just use three concepts to narrow the 635 to around 10 probable opportunities. For that I will use following:

1. Bearish Episodic Pivot list
2. Former price leader breaking down
3. High Priced shorts

I will have both Opportunity Buffet Posts up tomorrow morning because of volume of shorts.

If you are looking for the complete list of 635 , here it is:

AAPL AAV AB ABFS ABK ABM ABTL ACAS ACAT ACE ACF ACGY ACOR ADVNB AES AFCE AFN AGII AGO AGU AGYS AHL AINV AIR AIT AIXD AKAM ALJ ALTH ALY AMFI AMG AMWD ANDS ANGO ANR ANTP APOG ARA ARCC
========
ARGN ARII ARNA ARQL ASFI ASVI ASYS ASYT ATB ATHR ATPG AUDC AUO AVA AVCT AVD AVY AXP AYE AZPN AZZ BAK BANR BARE BAS BBD BBG BCGI BDY BHS BID BJS BKUNA BLDP BLDR BLX BNE BNVI BPOP BPT
========
BQI BRLC BRT BTJ BTU BUCY BW BZH CAO CAR CATY CBD CBF CBG CBON CBRX CCJ CCRT CENX CF CFC CFK CFW CHDX CHINA CHK CHTR CIA CIG CKFR CKP CLAY CMCO CMG CMG.B CMGI CMP CN CNA CNE
========
CNI CNQ CNX COG CPF CPL CPLA CPST CPWM CQB CRDN CREE CRN CRWN CSE CSS CSUN CT CTB CTBK CTHR CTR CTRP CUB CVO CXG CYNO DCTH DD DDE DECK DEEP DEJ DFR DHI DIVX DK DLLR DLX DNN
========
DNR DPTR DRRX DRYS DSCM DSCO DSL DWSN DXCM DY DYN EBS EDAC EDU EEE EFJI EFX EGI EGN EGP EGY EIG EIX ELON EMIS EMS EMU END ENG ENOC ENT ENZ EOE EPIQ EPIX EPL EPR EQT ERF ERJ
========
ERS ETFC ETR EVC EW EWZ EXC EXK EXLS FBC FBN FBR FCEL FCX FE FED FELE FFIC FHN FIA FIG FLML FLO FMCN FMT FNF FRED FREE FRGB FSNM FSP FST FTEK FTO FTWR FWRD FXEN GAIA GAP GCA
========
GCT GDL GDP GEF GGC GGR GIGM GLBC GLDN GLF GLNG GMET GMKT GMTN GMXR GOK GRA GRAN GROW GSOL GST GSX GTCB GTI GTLS GTW GTXI HDNG HDY HEI HERO HGSI HHS HIBB HIW HK HLX HMN HOC HOV
========
HPOL HRZ HSKA HTE HTRN HYC IBI IBKR IBNK IBOC ICE ICO ICON ICTG ID IDC IDIX IDSY IEX IFC IGD IGTE IMB IN INWK IO IOC IONA IOTN IPAS IPCR IPSU ISSC IT ITU IVN JASO JAV JCI JDSU
========
JEF JNS JOYG JRC JRCC JRN KBH KBR KELYA KKD KNBT KNOL KNOT KRG KWK LAZ LBAI LBIX LBY LEND LF LFG LNN LOOP LRY LSE LTXX LXU MA MBLX MBRK MCBC MCF MCGC MCO MCS MDS MDTL ME MEK
========
MERC MGEE MGPI MHP MICC MIR MMA MMPI MMR MNC MOBE MPS MPW MRO MRTN MSCC MSO MSW MTE MTG MTH MTN MTSN MTZ MVV NAFC NARA NBTB NCMI NDN NETC NFLX NFX NGA NGAS NGS NHP NI NM NOV
========
NPBC NR NRG NRGN NSTK NSU NTRI NVR NWEC NWK NXST NYM NYNY NYX OCLS OHI OII OMEX OMTR OPX ORB ORCC ORH OSIS OTTR PAC PACR PAL PARD PBCT PBNY PBR PBR.A PBT PCAP PCAR PCBC PCCC PDA PDFS
========
PEC PEG PERY PETD PFB PFS PGIC PLUG PLX PLXS PLXT PMI PMTC PNM PNX POT PPD PQ PRS PSP PVA PVTB PWER PWI PXD PXP PXT PZE QDEL QRCP QRR QUIK QXM RAME RAMR RATE RBN RCCC RDN RDNT
========
RE REGN RHI RIO RJF RKT RLI RMKR RNST RNT RPT RRC RSCR RTI RTIX RUS RVBD RVSN RWT RYN SAI SAIA SBCF SBSA SCA SCR SDA SDTH SDXC SGR SGTL SHLM SIF SIGA SII SKX SMSI SMTX SNG SONE
========
SOV SPF SPIL SPSX SPTN SQNM SSL SSP SSS STFC STKL STR STSA STXS SUN SUP SUPR SUPX SVN SVU SVVS SWC SWN SWS SWX SYM SYNL SYX TA TARR TBSI TBUS TDSC TEN TGA TGEN TGIC TGS TICC TKC
========
TNS TOA TOL TONE TOPT TQNT TRA TRCR TRLG TRMA TRT TRX.B TSO TSP TTES TTP TWGP TWI TXCO TXN UAPH UBB UCFC UDRL UEPS UIS UPFC URRE URZ USAP USAT USEG USG USU UTSI UVV UWM VCLK VCP VIAC
========
VIV VLCCF VLTR VSAT VSCN VSEA VSR VVTV WAL WAT WBD WCI WCRX WDR WEN WFMI WINN WLL WM WMAR WNR WPP WRES WSBC WST WTFC WTSLA WYE XFML XHB XIDE XL XMSR ZGEN ZIXI

Nice Selloff

As of now we are approaching 400 figures on the 4% breakdowns. Not only that but several leaders which were creeping up in last few weeks and bucking the trend are breaking down. AAPL being the prime example. When the bellcows start having problem, you should take the move seriously. The question is how far we will go. Will there be more 200 plus downside days in next couple of days. But sell offs like these after multi month rallies are good to set the market ups for further up move, probably post October.

So today OB Part 2 will appear before OB Part1.

Discipline is not the key

You do not need discipline to trade successfully.Discipline is a negative word.Discipline implies ability to refrain from doing something. Attempts at self discipline and self denial often fail. Yet you will find hundreds of books, trading coaches, trading mentors , who keep harping about discipline as the key to trading profits.

Any attempt at discipline has high probability of failure. Discipline works only in highly structured and hierarchical system where there is a highly regimented approach to controlling behavior. Armies are very good at discipline. Fear of punishment drives discipline. Even in such settings from time to time discipline breaks down. Discipline requires continuous negative reinforcement, if you don't do this you will be punished.

So if discipline is not the key, what is the key. The key is passion, perseverance, tenaciousness, persistence and grittiness. If you are determined to achieve longer term goals despite obstacle then the passion takes over and self discipline is not an issue. What others call or see as discipline is persistence to most successful people.The essential thing is do you have the inner drive to be the most successful trader you can be. If that is in place all the effort required to get there are driven by that passion.

Grittiness is most important if you want to achieve anything major in life. Grittiness involves ability to keep at it despite setbacks, it involves ability to overcome obstacles by going around them or finding creative solutions to it. It is an inner drive which propels you forward., for long duration, often years, till you get what you set out to get or achieve. We have a word for it in Hindi/Marathi language : चीकाटी .

All successful people who achieve something meaningful in life have an inner passion or an overarching goal. The pursuit of that goal consumes their life. Once you find that goal all activity performed to achieve it is pleasurable activity.

In more practical terms instead of focusing on discipline I would rather focus on:

1. Mental Modeling. Question your assumptions and beliefs. Replace them with right assumptions and beliefs. This is continuous process.
2. Support systems. Winners and successful people surround and network with other successful people. Mediocre people surround and network with other mediocre or negative people.Now this kind of network is not about collecting cheer leaders, but about harnessing the creative and shared energy and passions of others. I continuously build enduring relationships with successful traders with different styles. This is one of the major key to success in most field but few understand it. You have to work at it continuously.
3. Study successful people in all walks of life. I was recently reading a fascinating autobiography of Dean Karnazes , Ultramarathon Man: Confessions of an All-Night Runner. Now if you see ultra marathon as a sports, it demands extreme endurance and unless you have passion for it nothing is going to make you put in the effort required to run such things.In stories after stories you will find that these successful people found their inner passion and then the passion took over.

If you find your inner passion, you will have no discipline problems. So when you say I have discipline problem, probably you mean you have a passion problem. May be trading is not your passion.

Later: Discipline and regimentation

Opportunity Buffet Part 2

With 88 stocks down 4% or more, there is lot to keep short sellers busy. However in spite of weak action the market is not yet in confirmed bear move, so chances of getting squeezed or getting shaken continue to be higher.

Bears have shown inability to press their case time after time in this rally. It is again looking same at this juncture. When downside moves start, there is urgency to get out and one tends to find a cluster of 200 plus 4 % plus down days in a short span of time. That typically indicate professional and fund selling. That kind of behavior is lacking in this weak action. So this t this stage looks like a range forming for probable next up move.

Let us look at the short scan candidates:

ABFS,Arkansas Best Corp (Google Yahoo Earnings Chart)
ABP,Abraxas Petroleum Corp (Google Yahoo Earnings Chart)
ACA,ACA Capital Holdings Inc (Google Yahoo Earnings Chart)
ANDS,Anadys Pharmaceuticals (Google Yahoo Earnings Chart)
AOB,American Oriental Bioengineering Inc (Google Yahoo Earnings Chart)
ARIA,Ariad Pharmaceuticals (Google Yahoo Earnings Chart)
BIDU,Baidu.com Inc (Google Yahoo Earnings Chart)
BJGP,Beijing Medpharm Corp (Google Yahoo Earnings Chart)
BWTR,Basin Water Inc (Google Yahoo Earnings Chart)
BZH,Beazer Homes Usa (Google Yahoo Earnings Chart)
CBON,Community Bancorp (Google Yahoo Earnings Chart)
CCJ,Cameco Corp (Google Yahoo Earnings Chart)
CHI,Calamos Conv Opptys & Incm Fd (Google Yahoo Earnings Chart)
CKSW,Clicksoftware Technlgies (Google Yahoo Earnings Chart)
CNVR,Convera Corporation (Google Yahoo Earnings Chart)
COOL,Majesco Entertainment Company (Google Yahoo Earnings Chart)
CRZ,Crystal River Capital Inc (Google Yahoo Earnings Chart)
CT,Capital Trust Inc Md (Google Yahoo Earnings Chart)
CVO,Cenveo Inc (Google Yahoo Earnings Chart)
DESC,Distributed Energy Systems (Google Yahoo Earnings Chart)
DSPG,Dsp Group Inc (Google Yahoo Earnings Chart)
DXCM,DexCom Inc (Google Yahoo Earnings Chart)
DYII,Dynacq Healthcare Inc (Google Yahoo Earnings Chart)
EEE,Evergreen Energy Inc (Google Yahoo Earnings Chart)
EEFT,Euronet Worldwide Inc (Google Yahoo Earnings Chart)
ENCY,Encysive Pharmaceuticals Inc (Google Yahoo Earnings Chart)
EPIX,Epix Pharmaceuticals Inc (Google Yahoo Earnings Chart)
EXPE,Expedia Inc (Google Yahoo Earnings Chart)
FCSX,FCStone Group` Inc. (Google Yahoo Earnings Chart)
FINL,Finish Line Inc Cl A (Google Yahoo Earnings Chart)
FMT,Fremont General Corp (Google Yahoo Earnings Chart)
FRPT,Force Protection Inc (Google Yahoo Earnings Chart)
FTWR,Fibertower Corp (Google Yahoo Earnings Chart)
GDP,Goodrich Petrol Corp (Google Yahoo Earnings Chart)
GLDD,Great Lakes Dredge Dock Corp (Google Yahoo Earnings Chart)
GNSS,Genesis Microchip Inc Delaware (Google Yahoo Earnings Chart)
GROW,U.S. Global Invest Inc A (Google Yahoo Earnings Chart)
GSX,Gasco Energy (Google Yahoo Earnings Chart)
HAS,Hasbro Inc (Google Yahoo Earnings Chart)
HDY,HyperDynamics Corp (Google Yahoo Earnings Chart)
HLYS,Heelys Inc (Google Yahoo Earnings Chart)
HOV,Hovnanian Enterprises A (Google Yahoo Earnings Chart)
HRP,Hrpt Properties Trust (