It’s so hard not to treat the Daily Top 5 as a daytrading tool. Especially after a day like Monday.
In case you missed it, I bowed to beta-tester pressure and started giving the full list rather than choice selections. And I started posting the Top Shorts, too.
Perhaps I neglected to mention that TRIGR pulls a daily of short sale candidates as well. And Monday, the shorts were barnburners.
BankUnited Financial (Nasdaq:BKUNA) dropped 18% yesterday. Downey Financial (NYSE:DSL) got creamed for 23%. Don’t forget, these are one day gains.
TRIGR first got on BankUnited at $3.50 on May 14. The stock currently trades for $1.30.
Today, TRIGRs Top 5 shorts was heavy on homebuilders and financials. I suppose the market is trying to prove it has a sense of humor – homebuilders and financials were among the strongest sectors today (when was the last time you could say that?).
Personally, I doubt yesterday’s advance by the homebuilders and financials will have any legs. In fact, I think it will probably look like a good day to have taken some shorts.
Now, I’ve been getting plenty of reminders from Benson that TRIGR is not a daytrading tool. Ultimately, the reason is very simple. There’s no market timing component built into TRIGR. At least not yet.
And heaven knows, you don’t daytrade on the long side when the S&P 500 is awash in red. So, at this point, the market timing component is up to you, the beta-tester.
This gibes pretty well with my advice from the other day to keep a particularly close eye on a stock in the days following its appearance on the Top 5. Case in point – Perfect World (Nasdaq:PWRD).
Perfect World has been showing up off and on for the last week. And today, it finally made a little move to the upside. If my hunch is correct, we should expect to see some more upside for the stock.
This stands in contrast to a stock like Graham Corp (NYSE:GHM). TRIGR first picked Graham back in February. And Graham has doubled for us in that time. Not that it’s played out, but it’s not likely to make a big 40%-50% move in the near future. But if the market rallies, 10%-15% for Graham is possible.
So I’ll be watching Perfect world for the next couple of days.
Finally, I see from the comments here that we’ve had some more problems with registration. I apologize for that. But I think the problem has been fixed. Give it another try, and let me know if you have any more problems.
Ian
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2 responses so far ↓
1 lptrader // Jun 25, 2008 at 12:48 pm
First Day in. I will comment on the 10 stocks posted today.
Top Buys:
ACUR - going fast in the wrong direction, might want to consider shorting this one
AREX - appears to be trading in a narrow range; could be a breakout either way
ISYS - been in an uptrend for 10 days, looks like it is taking a breather today
REXX - jumped up in price June 5, flattened out by June 16 and seems to be heading down last two days, so I will say no
PWRD - looks like you got this one right. It is heading up, but there is heavy resistance at 27. If it breaks through, I will climb onboard
Top Shorts
PFB - Its been going south for a long time and appears to have reached a plateau, but the slope is still slippery and it could literally disappear down the rabbit hole.
FMD - This is a heavy loser, but for the past two months has been trading in a narrow range of $3 to $4. It appears poised to drop even further.
CCRT - This beauty has been breaking down since mid-May, but with the huge drop June 10, the range has stablized between $6 and $7. I don’t think there is much to be gained with shorting this stock.
RDN- This one collapsed June 6 and still driving downhill. Might be able to shake some more out of this stock, but it has gone from $5.50 to $2 to quickly. With a low entry of $2, there maybe a few crumbs left to take off the table.
TGIC - After trading in a tight formation, it lost the bulk in one trading day, June 19. Oh, to have had knowledge of this one would have given you 100% gain in 1 day. It seems to be ready to go into another prolonged flat period.
Generally, it seems that we needed to be notified sooner to take advantage of both the buys and shorts.
Top Buys - 1 out of 5 I will dare to hold
Top Shorts - 2 out 5 I will consider
Looking forward to tomorrows top picks
2 T.Major // Jul 1, 2008 at 7:34 pm
With all due respect, but are you serious on your evaluations?
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