Monday, January 07, 2008

Quick Note

While the market waited until the final minutes to close strongly, we closed rather strongly. We did higher volume today, without the big decline, so accumulation is apparent here (institutional buyers are stepping in). Breadth today was never very negative at all, even at the market lows. In the end breadth finished positive on the NYSE and basically flat on the Nasdaq. Further stability is important here (obv.), but today went a long way towards that broad market goal. The solars did see some rough profit taking drops today, but the rest of the leadership-list was resilient and/or strong today.

I unloaded solars JASO and YGE, stopped-out just below the morning lows. That leaves me no solar for the time being; see how the group behaves tomorrow.

I went long SBUX for a quick trade (18.35). This stock would not drop when market pressure was most extreme and during constant attention to MacDonald's adding cappuccino machines in their stores all over the press today. This is a 1-2 day trade at most.

Current (order of size): TNH, ONXX, FWLT, SBUX, GENZ, HOLX, LNN, SYT, AIR, CAF

[Edit: After the close SBUX announced that founder Schultz is re-taking the reign at the company and the stock knifed above 20 (after hours). While this may be significant enough news to carry this name further short term, I took profits on the news (19.90); as this was designed as quick trade.]

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