There are various situations in which one should stay away from certain trades. The most common reason is that a trade does not look smooth, i.e. if a stock has been in a range of 10 cents for five hours and one buys the stock at the top of the range, one really cannot expect to garner a quick substantial profit in that situation. When one trades a âsuperliquidâ stock like Microsoft (MSFT) or Intel (INTC) that tends not to move very fast, it is usually quite difficult to latch onto a stock that will go up, say, 20 cents or more in two minutes. However, the most dangerous trade of all is akin to pure gambling- trading a stock which is due to have news out in an imminent timeframe. The stock could have a lot of great features- liquidity, trading near a high or low, the market could be moving in the direction one wants the stock to go, and so forth. But some situations are just too hard to overcome. Recently, shares of Dendreon (DNDN) staged a nice rally in advance of the release of news on its lead drug. On April 28, the stock broke hard from above 20 to 7.50 in mere minutes before trading over 27 after-hours! There was no particular reason why the stock fell, but one could have avoided the whole experience if one was simply aware that news was due. One does not want to be stuck in something because of a halt nor does someone want to lose months worth of income on a âfluke.â The daily epiphany: be aware of major news events that will directly influence a particular stockâs direction- and unless you truly like gambling- remember that sometimes the best thing to do is nothing. Stock markets overnight were up slightly across the board with the commodities markets quiet. The major news of the night was an article appearing in the âNY Timesâ which implied that BAC needed more capital. Yet, the stock after dipping to below 10 in the early morning has made a nice comeback as of this writing. An unexpectedly strong read on employment at 8:15AM also provides a bullish signal. This has turned a negative 10 handles on the S&P into a decently strong morning. These are screaming siren calls that this is a very resilient market. Look for an upside bias with the banks (and particularly BAC) as benchmarks. Things will likely change with each rumor of the moment, but the tone is quite strong. Reiterating- Please understand that if the ideas do not get to the hoped for set-ups cited below, more often than not, one should not blindly trade the symbol next to said idea. If the whole story is not there - If something is good, assume either a short thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specifiedIf something is bad, assume either a buy thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified- Good- The following stocks have good news and/or a strong technical pattern IPCM- closed near a high after great earnings posted MNKD- closed near a high SAH- renegotiated debt yesterday and closed near a high FCH- closed near a high NCS- closed near a high FNET- closed near a high ATRC- posted great earnings which propelled it up 100% in closing on its high DIS- good earnings LNC- good earnings CRL- good earnings VCLK- good earnings UDR- good earnings CEDC- good earnings AMMD- great earnings COGT- good earnings HLX- good earnings CLF, BRCD- on âMad Moneyâ last night FIG, DFS- on âFast Moneyâ last night RHB- good earnings ACOR- great earnings BYD- decent earnings ANR- great earnings BX- good earnings XTO- good earnings Bad-The following stocks have bad news and/or a weak technical pattern LVS- beat earnings slightly, but not convincinglyâ¦traded down after-hours last night; watch MGM and WYNN with it DOW- doing a share offering tonight SGY- poor earnings CEPH- poor earnings ERTS- bad earnings PBI- bad earnings PHM- poor earnings JKHY- bad earnings JCOM- bad earnings HRS- terrible earnings CTX- bad earnings AGU- bad earnings CLH- bad earnings FWLT- bad earnings GRMN- bad earnings PWR- bad earnings RRD- bad earnings ACAS- atrocious earnings GM- proposal of reverse stock split now on table BAC- overnight story in âNY Timesâ which intimated that BAC needs $34 billion more in capital Earnings: WED MAY 6 BEFORE ACOR AGU ANR ATW AUXL BVF BX BYD CEDC CFL CLH CTB DSX DVN ENB FIG FOR FWLT GRMN HK ID IRC KWK MGA MGG MMC OGE PCG PKD PWR PXD RRD SNH TRW TTI WNR WTR XTO WED MAY 6 AFTER APC BAS BKD CECO CRA CSCO CXO ECLP EGLE ENH EPR EQ EQY EXPD FRT GDP GXP HME IDCC MELI MUR NSR NWS OEH ONXX OTEX PAA PRU PVA RBC REG RIG RIO SUN SVNT SYMC THQI TSO USU WG Good luck today. Erik R. Kolodny
Erik, It appears that you put a lot of time in your daily post, and I'm sure you have many followers here on ET that appreciate it. That said, the Journal section might be a better place for your daily thoughts. In fact, you might want to consider continuing to post on a single thread for you ongoing thoughts and questions/discussion instead of creating a new thread every single trading day. In addition, those following your thoughts will have a much easier time going back in history on the single thread, versus having to jump through the 100's of various Daily Thoughts threads that you've now created. Keep it simple, I would suggest. Create a single thread in the Journal section entitled "Daily Daytrading Thoughts of Erik Kolodny" and update it with a new post each day in the same thread.
Erik, Please respond with your thoughts to the post below (or the two, above)? It would be very simple to put your daily thoughts in a single thread of the Journal forum, where they belong. Thanks.