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[Metastockusers] Tip



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TIP

Late day momentum in either a particular stock or the overall market
typically carries over into the first part of the next day.

Any time a stock rallys on the close, look for a strong open the
next day. The same is true for the overall market.When new information
about a company spreads and causes a strong increase in buying (or
selling)in a particular stock and the buying (or selling) HAS to stop
because the market closes it creates even stronger demand (or supply)
for the stock the next morning. This happens because: 

1. All the current buyers didn't get enough stock and still have
open buy orders.

2. The traders that gravitate to moving stocks will see where the
stock closed, and by looking at an intraday chart, they will see that 
it
closed up strong so they will jump in the next morning . Now you have
2 groups of buyers adding momentum, which creates the carry-over of
upside momentum the next day. The same is true for the market as a
whole  - when it closes strong, it usually opens higher the next
morning.

If a stock was going down sharply at the close you would see it open
down sharply the next morning for the same reasons. You can make a
quick profits by taking taking advantage of this scenario. 

http://clix.to/wallmann

--------

ISRG came through for us as predicted and if you are in it, congrats!

----------

Our VSL finally made a nice move higher and we are up .75, we'll take 
it. We also made a move in JNPR on Friday, but it followed a pretty 
common pattern. It opened well, pressed higher, we jumped in, it ran 
a bit and rolled over. We did end up taking it home, but it's below 
our entry price. Not good! We are willing to sit tight and baby sit 
these two for now. 

-----------

We were watching GS on Friday but they didn't do anything. Now this 
weekend Barrons ran an article about BSC and how they could be worth 
100 per share which could cause BSC to move and pull the financials 
up with them. Considering LEH makes a lot of their money in fixed 
income trading like BSC, there is a chance LEH will move, but ww will 
continue to watch GS, they can move like reallyl well when investors 
want them. 

----------

BBH looks interesting, trading at $139, a move above $140 could draw 
us in.

-----------

The retailer stocks were mixed on Friday and we never entered LOW, 
but that doesn't mean we don't like it, patience might be called for. 
We think the hype will come back and with the recent housing news 
still showing strength, they should buy up the home improvement 
centers. We'll leave LOW on the consider buy list. 

-------------------

Friday, we picked up OSIP a bit late at 60.05 and sat and watched 
them hit 62 and then it started selling back down. We dumped a fourth 
of it while still above 61 and when the final bell rang it was only 
up for us 6 cents over our entry. Obviously it would have been better 
to dump it all above 61, but hindsight is 20/20. We are going to sit 
tight and just watch for a couple days. 

-------

Barron's had an article about Jacuzzi and how they have installed so 
many bathroom whirlpools and hot tubs. With the housing boom and low 
rates JJZ has had a huge surge in demand and "some" analysts think it 
should trade in the teens. Watch for JJZ to get attention Monday.

-----------

On Friday we felt that maybe the nets would see another push, but 
they didn't get very far. We never got a shot at EBAY, but YHOO did 
indeed move higher on the day and they look pretty healthy here. We 
are willing to try YHOO if they can get above $31.15.

------------

We had JNJ on the consider buy list because the drug patch was 
getting some "safe haven" attention last week, but Friday wasn't that 
good for most of big pharma stocks. The one that did do phenomenal 
was VAR. The stock posted tremendous sales numbers and up they went 
for over $5 bucks!

We will not chase VAR here, a bit of froth has to come off first, but 
we'll certainly watch it once it cools off a bit. We will pass on the 
drug sector until we see if they are going to continue higher or if 
fund managers shift to more aggressive positions in tech. 

---------------

Where are we in tech land? No where actually. SMH is still horribly 
in the toilet, although it's been fighting back. We didn't enter any 
tech positions on Friday, so it's still the only thing we are 
carrying. So, what now? Can we add something to the tech portfolio? 
That's a big maybe. 

We tend to think that this week is going to be throttled because of 
the big jobs report on Friday, but we also think they might be 
willing to try and keep a bid under the techs. Considering we are 
still trying to battle back from getting hit on the chip sector, we 
are not going to look there, we'll just keep wishing our SMH higher. 
But there are two chart patterns in tech land that we like the looks 
of. They are SUNW and CSCO. 

We'd be willing to buy SUNW if they get clear $4 or CSCO on a move 
above $21.

----------

http://clix.to/wallmann



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