MARKET COMMENTARY (6-4-09)

The Necron Race, Warriors of the C'tan gods

First, I got you all addicted to $1 stocks. You guys are HOOKED. Denial won't get you anywhere and there is no rehab program, sorry. As you may know, I told myself that I would buy higher priced stocks. Well, that isn't happening. I'm the dollar stock dealer, Escobar-style, for goodness sakes. I can't quit this game just yet.

I banked major coin yesterday, nearly +6%, thanks mostly to my day trades. Just so you know, I am not a primary day trader, however, if I see a stock BTFO intra-day, well then, why should I just sit here and fiddle with my thumbs? I won't. These moves happen really fast, so you better get on the train before it blows exhaust fumes onto your face.

I could care less about the economy or stock fundamentals. This blog is a place to make money by acting upon great stock picks that move double-digits. This is how I've been jacking treasure chests from pirates for over 8 straight weeks. As individuals, you sometimes have to trade unconventionally, automatically putting underperformers to shame, something that the institutions, managing and losing your 401k money, would ever understand.


The market is still range bound, so there is nothing new to add. A breakout above 948 or a breakdown below 923 is technically significant to me. Everything in between is marked as consolidation.

Anyway, here are a few setups. I looked at 400 stocks priced between $10-20 with 500k volume. Make note that these stocks are for people who don't play dollar stocks or for people who want something more stable in their lives. Make note that most of my setup charts broke out (since I've started doing this 2 days ago). Here are more setups to add to the list:

MARKET COMMENTARY (6-3-09)

Dhar'leth, Daemon Prince of the Black Legion, Champion of the Antecanis Massacre

Make note that we are in a neutral range between 925-950. I already took the liberty to draw my boxes on the SPX charts below:



Expect a dull day. Go run some errands or something.



I am currently at a 62% cash level. CTIC remains as my largest holding and the others are: OCNF, PLLL, BZ, ACAD. I will be using my cash in the near future.

More SETUPS below (p.s. don't forget about the ones yesterday, some stocks need more time to make a move than the others). My parameters were stocks $3-10 with 500K+ volume:

MARKET COMMENTARY (6-2-09)

Huron Blackheart, Tyrant of Badab, Chapter Master of the Astral Claws, Servant of Warmaster Horus

Well, if you saw ADLS and CTIC, then you know that I had a small down day yesterday. I got into ADLS at $1.14 on 5/29, and for some reason, I sold only half my position yesterday at $0.85. The other half? I still have it. Ridiculous right? Well, I will sell the remainder today.

ADLS was a 5% position. I took a -25% hit on the first half, and I'm holding the other half, a -62% loser, which makes up 2.5% of the port. Not bad. Then BZ came and saved the day, cancelling out CTIC's losses. It could have been a disaster, but I was never in any danger.

This is the most simple lesson in position sizing that I can give you. It will save you from utter destruction. If you had a much larger position, then you aren't having a really good day right now. Taking losses is ok, but only when they are contained.

My holdings are cash (52%), ADLS, CTIC, ACAD, TGB, MRGE, BZ, PLLL, AXL, and OCNF. You guessed it, they all make up approx. 5% each. Within minutes, I went from being 100% long to 48% long and cut a lot of positions simply to raise cash. It was a necessary emergency defensive measure I had to take. My goal is to preserve my gains, so after this ADLS incident, my risk tolerance for biotech went way, way down.

But hey, I'm still up +10% for June!

I wanted to bring up ADLS specifically because this is the first time I lost so much on one stock in a single day (by percentage) in the biotech sector. For this reason, I will be making the following changes immediately:

• Focus on higher priced stocks with a limit of $20, instead of $3.
• Cut the biotechs and get into other sectors.

I respect the market and listen to what she tries to tell me. ADLS was a warning against buying so many lotto tickets and I will heed it. That's how I roll.

In addition, I will post charts of potential breakouts on the blog from now on until I get tired of doing it. I'll give them to you, but it is your responsibility to make good judgment calls on them. You can thank me later. These are only setups which must be confirmed intra-day. Don't buy shit indiscriminately just because I post a chart.


Finally, I want to say that I am really proud of everyone that contributes on my blog. Your picks and ideas are golden. Everyone's making money here (or should be, if not, shame on you), and that's a really great thing. I can honestly say that I am making money from some of your picks, so keep it up and thank you for your contributions. You all know who you are.

4:30AM EST - I only got through A to C stocks because it's 4:30AM and I didn't get any sleep yet. These are only setups. Trade accordingly.

MARKET COMMENTARY (6-1-09)

I told you we were going higher, didn't I? Yet, some of you kept shorting last week or all of last month, practically volunteering to stand outside of a 7-11 with a cup in your hand. Banking coin isn't free, you have to earn it.

Yesterday, patience rewarded those that held onto CTIC for a +46% gain (not to mention an extra +17% on Friday). I believe I did mention a few days ago that it was my largest position. BZ was the 2nd largest gainer at +18%. MRGE was the biggest loser at -9.5%.


In the end, I am up just over +160% YTD, my all-time high for 2009. I also started off June with a +13% gain. Those that bet against Warmaster Horus and the Chaos legions were swiftly defeated, while the resistance unwillingly received 'the Mark' and became cultist slaves. It's a tough business being a short.

As for the market, there's a reason why I was (and still am) in 100% small caps. The RUT was the highest performing index, up +4%. The SPX finally made it over the 200-day MA via continuation gap, and the DJIA is still bumping up against it. Likewise, if you looked at the world market indices, as well as the US market's individual sectors, it should have been plainly obvious which direction we were heading. Stop making this game so difficult for yourselves.


You can see the new short-term range locations for all of the indices. Today is very simple. I do expect a pullback, but all we have to do is not cancel out yesterday's gains. Then again, most of my picks don't follow the general market anyway, so who knows.