Monday, January 26, 2009

Roll Out the Green Carpet

Don't do what I do, but juicy night crawlers are worming higher, below.

We've been gearing up for another rally for the better part of 5 days and while today's earlier strength has stalled and the action chop-choppy, it still looks like we're getting started.

I'm pressing on the accelerator as we start coming off the lows here - looking to pyramid higher as long as we keep rallying.

Led by oil's turn higher, commodity prices are firming; the (defensive) bond market has sold-off and held at lower prices; the recent decline in the broad market saw a strikingly low number of new 52-wk lows, coincident to recent lows in the indices; and new leadership growth stocks have been poised all over the tape.

I don't want to guess yet if we take out the December highs, but if we do I think we're going to see the last real rally for a while and it will be led by catch-up garbage plays (like Financials, Energy, Materials and other cyclical uglies) and by the very decent looking growth names out there.

Even if we do not take out the December highs, I suspect many of the leadership names will, which is why I prefer the leadership for intermediate and swing trades and leave the snap-back uglies eligible for quick trades only.

Then, well a return to Hell of course - nothing less than the dreaded apathy-period whereby the investment world is slowly ground down to the realization that they wish they had all been insurance salesmen.

But that comes later. For now the Long List is Faster Faster once again...

Fat Worm Live List:

AVAV (the strongest solar paper airplane stock I know of)
ASEI (very thin, Big Brother Better Mousetrap play)
ATHN (because medical records should be hacked as much as anything else)
MANT (thin, watch your back...another Big Brother mousetrap play)
DLTR (shopping at its finest; lovely place)
MYGN (still my favorite Biotech at moment)
CEPH
LPHI (why sell yourself short when you can sell your whole-life policy instead)
GXDX (thin and sleepy Biotech which has a very decent base..buy it higher)
AIPC (still thin, still strong...brand your own bad pasta)
APOL
COCO
LOPE
CECO
CAL (ditch the airlines if oil keeps up an they break their uptrend)
UAUA (")
HMSY (thin)
LOPE
SXE
ACM
THOR
TWGP (thin and heavy short interest requires caution)
IDCC
BKR (thin)
GTIV
CAL
NCIT (very thin)
INSU
SXCI (very thin)
EMS (thin)

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