Wednesday, January 23, 2008

Bottoms Up...!!!

BOOM +6 points ... Darn - this one is on the shopping list...the problem with shopping lists is that without money to shop they're nothing more than lists...

If you missed your date with a bottom-dwelling darling, don't worry - there will be plenty of traders playing this bottom...


everyone knows that bottoms are rough and a lot of bouncing is likely - so, when 5 to 10 point moves hurl these Ghetto-Fabulous stocks off the bottom, traders will be chopping out profits and creating more buying opportunities...There should be plenty of trading channels developing along the way back up toward the Pacific Heights where stocks will eventually be once they've finally made their way back home following the recession fest...So, for major stocks which have great economic stories - buying on the major dips should offer high likelihoods for rapid profitable trading opportunities... excellent insulation against downside risk is inherently intrinsic to bottom bouncing trades...think about it..if you were being dragged along the bottom and pushed around, you'd bounce up every now and then when the pushing pulls and the bottom contours aligned, combined, and applied their forces to propel you upwardly...since you had been sinking and are still oriented for travel in that direction it takes a few bounces to even get you re-oriented to optimize upward traveling following a push-pull-collide-bounce event...The Key Here IS that when you come back down to ready for another jettison experience - You Hit A Bottom and Stop Falling...so traders love this...they will be buying and popping and selling over and over again...once the push-pull forces start to get stronger and the stocks are comfortably aligned for upward travel they will no longer fall all the way to the bottom anymore, but rather come to rest before reaching the bottom and remain buoyant there until the next move up - falling less and less after each burst as they move farther and farther from bottom - this is not to imply you shouldn't expect the bottom not to drop successively...if the bottom is a slope going down and you are bouncing along in the downward sloping direction - guess what - you can still know you won't fall forever while realizing you are falling lower each time just to get to the SAME BOTTOM.....example - i will not be surprised if Apple sees 118.35 or even as low as 101.42 if things DRAG Along Long Enough before propellants are powerful enough to launch it from the Bottomousphere out into the Profosphere...

Short Term Trading Opportunities Abound:
While the market was BOTTOMING UP - took positions in:
AAPL 128
PBR 90
AUY 14.75

These look great right now, but the lows could be tested again and instant profits can fall off faster than they fell in...expect this to repeat in the short term - up and down - over and over - off and in --

seeking possible Super-Poppers:
BOOM
AMSC
FCEL
AVAV
DSTI
WFR
ESLR
FRO

Embellishing around the core position with Poppers-Extraordinaire:
AAPL
PBR
GOOG