Wednesday, August 26, 2009

RINO (Rino International) Update - IBD 100 Potential Runner

RINO as I have mentioned before should be a top 5 IBD 100 candidate (search blog for my discussion of IBD 100) if it close above $15 on any upcoming Friday (now near $13.5). As you know I re-entered this when in bounced off of its 50 DMA down in the $11 range after taking an initial loss. Does this means RINO gets to $15 this week - by no means. I am simply pointing it out as past IBD entrants have been runners and as always just for entertainment purposes as nothing I say is a recommendation to buy other than for myself (so any time I say pick or recommendation it is simply my personnel decision). I simply blog to share my journey through the markets. Do your own research as that is the only way to invest.

Also, nibbling towards getting back into a full position on RCON before earnings as this has sold down too far prior to earnings imo (although in retrospect I should have sold more on the initial pop to $9.5 - but hindsight is 20/20). If you take out RCON's cash of $2.5 a share the business is "selling" for $3.5 a share which on pro forma earnings (taking the new shares into account) is like a 5-6 current PE and maybe a 3-4 forward PE. Seems way cheap for a growing company and it has 50%+ insider ownership so you know management's interests are aligned. That said, this thing can not find a bid (maybe it needs to sweep the stops at 5.99 before this decent can end).

Tuesday, August 25, 2009

Market starting to feel heavy

and everyone is scared to short into it... does that mean a reversal may be coming. I think it might. Oil tirned south today and that could be the initial tell. However, short has been wrong and long has been right for the last 50% in this market so who knows. After Labor Day volume should return.

Monday, August 24, 2009

Goldman's Trading Tips - Doesn't seem right...does it?

The Wall Street Journal reports that critics complain that Goldman's distribution of the trading ideas only to its own traders and key clients hurts other customers who aren't given the opportunity to trade on the information. In fact, every week Goldman analysts offer stock tips at a gathering the firm calls a "trading huddle." But few of the thousands of clients who receive Goldman's written research reports ever hear about the recommendations. At the meetings, Goldman analysts identify stocks they think are likely to rise or fall due to earnings announcements, the direction of the overall market or other short-term developments. Some of their recommendations differ from ratings printed in Goldman's widely circulated research reports. Some Goldman traders who make bets with the firm's own money attend the meetings. Since the trading huddles began about two years ago, Goldman has supplied "trading ideas" on hundreds of stocks to the traders and top clients, according to internal documents reviewed by The Wall Street Journal. At least one firm discloses such trading tips more broadly: Morgan Stanley (MS). Their research dept. sends blast emails with short-term views on various stocks to thousands of clients, and posts the information on its Web site. It doesn't call customers to convey the tips, because co officials decided that could expose the firm to questions about selective disclosure, according to people familiar with the matter.

As I have mentioned before Goldman trades one way in private with their own money and says a different thing in public. Not right, man.

Friday, August 21, 2009

Morning Commentary

Market continues its leak north.

Oil looks to be a a breakout point. Gold/Silver up early. If oil breaks out it may be worth looking at some smaller cap oil plays for momo buying over the short term. We have some exposure there with RCON, but there are other ways to play that with past momo oil runners.

It's hard for me to get excited about being long at these market valuations, so I will stay away. But as a trader sometimes you have to trade what you see not what you think.

Also, RINO perking up this morning. The more I research this one the more I like it. If it dips again into the 11's I will add more. I think this definitely gets over $15 before end of 2009.

RCON Update - Apparently this company is ringing the bell on the Nasdaq next week. This could give the company some additional exposure and it wouldn't shock me to see earnings around the same time for max effect. We'll see.

Thursday, August 20, 2009

Video Discusses Buffett's View on US Spending

The underlying bid remains

Markets continue to leak north. Interesting to see the continued strength in both the stock markets and the US bond markets.

Also, worth noting that the US markets seems to be keying off of China lately. Just something to note because the US historically led the way...

Other things I am watching are oil at a potential breakout/resistance point and financials as those seem to lead us up or down.

Other than that just chillaxin' (chilling and relaxing combo word!)!

Wednesday, August 19, 2009

Demand for gold slumps to six-year low - Daily Telegraph

Daily Telegraph reports demand for gold has fallen to a six-year low in the last quarter as big gold-buying countries such as India and Turkey retreated from high prices. Jewelery buyers, who are the main drivers of the gold price and make up more than 50% of consumption, withdrew from the market with volumes down by 22% in the last quarter. Electronics producers, which need gold for components such as smart-cards, cars, medical implants and sensors, also appear to have been buying less of the precious metal as consumer confidence remains depressed. Rozanna Wozniak, investment research manager at the World Gold Council, said that despite a drop in gold jewelery sales, demand for gold as a long-term investment prospect rose by 45% over the last three months. Traders are still clinging to the commodity as a safe haven during the recession and central banks bought 14 more tons of gold than they sold -- their first net purchase for the last decade. "We have seen pockets of demand coming back and people looking for opportunities to buy back in but the biggest factor in lower demand is the 31% rise in the gold price since last year," she said.

This is interesting... what to make of it a bullish or bearish signal? I like gold long term as a asset class to own.

Markets recover early losses as dollar heads south again

The dollar down / market up game is once again in vogue. Surprised that US Treasury bonds are up... I guess it is a long-term bond monetization day for the Fed as they were in the "market" buying US debt. For some reason people have been bidding the hell out of UST the last week.

Buffett says the US could become a Banana Republic? Kind of.

Click read more for article

WASHINGTON (Reuters) - Billionaire investor Warren Buffett said the U.S. economy has avoided a meltdown and appears on a slow path to recovery, but Congress must now deal with enormous amounts of debt that threaten to erode U.S. purchasing power.

In an opinion column published on Wednesday by the New York Times, Buffett wrote that he "resoundingly applauds" actions by the Federal Reserve and the Bush and Obama administrations to pump trillions of dollars into the financial system.

But the "gusher of federal money" has run up a high level of debt that could fuel inflation, he said.

"The United States economy is now out of the emergency room and appears to be on a slow path to recovery," Buffett wrote.

"But enormous dosages of monetary medicine continue to be administered and, before long, we will need to deal with their side effects. For now, most of those effects are invisible and could indeed remain latent for a long time. Still, their threat may be as ominous as that posed by the financial crisis itself."

Buffett, who runs insurance and investment company Berkshire Hathaway Inc, likened the economic threat of "greenback emissions" to the environmental threat of greenhouse gas emissions, leaving the United States with a deficit of $1.8 trillion or 13 percent of gross domestic product this year.

In July, the government posted a $180.68 billion monthly budget deficit, a record for July, marking only the third time in the past 30 years that the government ran a deficit for 11 months in a row.

Buffett said a revived economy will not be able to generate enough revenues to bridge the gap between outlays and receipts, so changes in taxes and spending will be required.

Politicians will not likely have the will to raise taxes or slow spending, so they may opt to quietly let inflation increase, a move that will "confiscate" wealth and allow the United States to evolve into a "banana republic economy", he said.

"Our immediate problem is to get our country back on its feet and flourishing -- 'whatever it takes' still makes sense," Buffet said in the paper.

But once recovery is gained, Congress must end the rise in the debt-to-GDP ratio and keep its growth in obligations in line with its growth in resources, he wrote.

"Unchecked carbon emissions will likely cause icebergs to melt. Unchecked greenback emissions will certainly cause the purchasing power of currency to melt. The dollar's destiny lies with Congress," he said.

Last month, in a newspaper column of his own, Federal Reserve chairman Ben Bernanke, said the huge amounts of money the U.S. central bank has pumped into the economy will not undercut its ability to push borrowing costs higher when the time is ripe.

Stressing that the weak U.S. economy will likely warrant exceptionally easy monetary policies for a long time to come, Bernanke outlined in a Wall Street Journal opinion article how the Fed could raise interest rates even with cash flooding the financial system.

"At some point, however, as economic recovery takes hold, we will need to tighten monetary policy to prevent the emergence of an inflation problem down the road," Bernanke wrote.

The outline of the Fed's "exit strategy" from the extraordinary monetary policy easing it has undertaken in the past two years to deal with the global financial crisis was the subject of testimony to Congress by Bernanke in his twice-a-year economic report on July 21.
...Read more

Tuesday, August 18, 2009

Recon Technology (RCON) Update - Still Like This One For Potentially Big Gains

RCON continues to fade on low volume and had a disappointing day today as it did not rebound with the market. Fact is this thing just doesn't get any attention (and small amounts of selling are dropping the stock). However, when a few bigger fish fall onto this one or when it reports north of $1 in EPS within the next few weeks, a run to the double digits could be a quick journey as with its microfloat it moves both up and down quickly. Search RCON in my search my blog section for more on RCON. I still like the stock (for a swing trading long through earnings) though for those asking what I am doing (I took a little off when it ran 50% from my initial recommendation price, but still hold the majority of the position and will scale in back to a full position on any additional weakness back towards $6.)

RINO Re-entry

I got back on the RINO bus as I mentioned I might yesterday. Today we see a nice bounce off the 50 DMA. And my stop is slightly below yesterday's lows. The valuation and tech setup was too good to pass up despite the bad timing on the initial call.

Monday, August 17, 2009


Longs getting murdered / commodities getting murdered / RINO/RCON getting murdered...

at least my short positions are up big, but not overtaking the losses from my long positions in other areas today.

Stopped out of RINO, but may look to re-enter as now the valuation looks really compelling, but hard to fight the tape here. Sorry about that pick...clearly my worst of 09 from a timing perspective. Still, think it goes back over $15 in 09, but my timing was off so I was wrong on that trade.

One thing to remember in this market is take some profits when you have them because in one day or a few days a lot gains can be erased (RINO from almost $18 last week to 11 today - at least I only rode that down for $2. However, a lot of people saw huge gains erased there in a very short period. Tough thing there is it just looks way oversold and sells at 5x forward earnings (and 4.5x if you net out cash). So, at $11 given a 3-6 month time horizon I'd want to be long this.)

Saturday, August 15, 2009

Have a good weekend

I'll be back later this weekend with some additional thoughts.

Thursday, August 13, 2009

A potential IBD 100 trading idea - RINO (RINO International Corporation)

This is a stock that has had a big move but pulled back since reporting good but not good enough earnings after strong move. It's another China play (like my recent picks RCON, DGW - you can click the blue RCON for that recommendation) - this time on environmental protection equipment. Has been compared to DGW which is a water treatment IPO that I nailed for a 50%+ gain this year. You may say why buy now? after the big run? after earnings? what is the catalyst. It's the IBD 100 potential it has. You ask what is IBD 100 potential? IBD 100 is a list of 100 stocks that are profiled in Investor's Business Daily a widely read and respected investing newspaper every weekend. To be on the IBD 100 you have to meet "black box" criteria from IBD that qualifies you. Basically the rankings are based on earnings and relative strength. After RINO's recent earnings report it now has a 99 EPS rating and a 99 relative strength rating. This is as high as it gets, but RINO is not yet in the IBD. The reason is a stock has to be over $15 to get into the list. There is often a natural attraction for traders to identify these IBD plays under $15 and push them over the $15 so they get included in the list and get additional exposure that can cause some stocks to run (check FUQI for an example of a runner after getting above $15). Also, with a 99/99 it should be in the top 10 on the IBD list if it closes above $15 tomorrow or any Friday soon. So for a trade buying RINO here around $14 should be good for at least $1 and maybe a lot more. I bought today at $14 and will add if it dips down to $13.5. My stop goes under $13 for now.

Besides all this IBD stuff the company made 89 cents in the first 6 months of 2009 and has growth ahead of it. Therefore, if you double that .89 you get about $1.80 in earnings and the stock trades at only $14 so it has a pretty compelling stand alone valuation angle to it as well.

A little more color on RINO

Rino makes environmental protection equipment for the iron and steel industry in China. Specifically, Rino makes wastewater treatment, flue gas desulphurization equipment, and high temperature anti-oxidation systems, which are all designed to reduce either industrial pollution and improve energy utilization. Rino does make equipment to ensure than steel producers in China are not polluting water supplies. Rino is also set to benefit from the Chinese government enacting stricter environmental standards.

What's going on today - a lot of nothing

Market bouncing around today a lot as the indecision is evident (with what feels like an underlying bullish bias). Stopped out of the rest of my TBT for a 50 cent gain (sad thin is premarket this was up $1.2 more) today as the long bond auction is being hailed as strong (I will look to reenter around "fitty"). Economic data this morning was poor in my opinion and does shoot some holes in the "green shoots" bull$hit. Imagine media will spin it like they always do! Nevertheless, traders are turning a blind eye to eco data as I think big money thinks they have some shorts that need to be squeezed before this episode of the market's pump turns into a dump. I guess I am saying a further squeeze up would not surprise "this guy". That said dollar is down again and this is how the market could stay up regardless of fundamentals for a period of time I guess.

My guess is Goldman will ride the wave all the way down like they did all the way up. Remember these are the guys who analysts said oil was going to $250 last year but somehow all their traders made fortunes shorting oil from $140 to $35!

Wednesday, August 12, 2009

Short Interest way down in July - Contrarian Sign?

Short interest on the S&P 500 is down to its lowest level since February. Investors were short 8.7 billion shares of the index at the end of July, Bloomberg reports today. That’s a 12% drop in just two weeks. Shorts reduced bets against financials the most, down 31%.

Make of this what you will, but feels like one piece of the contrarian puzzle that has me starting to lean short again. That said, I am not committed to the short side yet as it feels like we may get a few more pushes or consolidate for a while before we move back down.

Selling 1/2 of my TBT from yesterday for $1.15 gain - nice trade

As I mentioned yesterday my trade was only for $1-2 on this TBT. Therefore, taking half off for $1.15. Moving stop up to 51.49 on the remaining piece.

10 yr UST auction results sort of weak here so could go further but locking in gains ahead of the Fed.

Nice, low stress gain on this one for me.

I still maintain a longer term bearish position and view of long term US bonds.

Tuesday, August 11, 2009

Update on positions, one new trade - TBT Long

I just bought the TBT (2x short long term treasuries at $50.9). Took a 1/2 position will buy more at $50 if it gets there. A little risky in front of the Fed but less so now that it has sold off the past few days. Looking for $1-2 on this trade as I already have a core short position in long term treasuries through a short on the TLT.

Letting my remaining short positions from Friday ride (as of right now) with stops moved up as these are nicely in the money now (between 2-10% depending on the trade).

I am also eyeing GLD for a trade but have not taken it.

Monday, August 10, 2009

Locking profits on 1/2 of my short exposure from Friday afternoon

As mentioned here I bought SRS/SKF and shorted some additional SPY on Friday afternoon. I am banking profits on half of my exposure. I think we have more to pullback but going to take the solid gains in one day off the table, especially with the longs continued late day squeeze fetish still in style.

The SRS good for 6%, SKF for 3.0%, SPY for 1%.

Saturday, August 8, 2009

Recon Technology, Ltd. Profile – A Small Cap Chinese, Energy-Focused, IT Company

Recon Technology (RCON) is an interesting microcap company that IPO’ed last week which I think has huge potential for gains in the near and long term. First, the company is very small, so if you don’t like volatility you can stop reading right now as the company has a current market cap of around $30 million.

What does the company do? Actually it looks pretty interesting. Recon Technology, Ltd. provides computer software and hardware solutions to companies in the petroleum mining and extraction industry in China. The company engages in the sale and installation of hardware systems related to heating, maintenance, and processes customized for petroleum extraction. Basically, the Company provides services designed to automate and enhance the extraction of petroleum and it focuses and is located in China. RCON is the first Chinese non-state-owned oil and gas service company to go public in the US.

What do I like about the Company? Quite a bit.

Proprietary Technology - The Company does have proprietary products with 3 copyrights, 8 patents and 4 pending patents. This technology is validated by the fact that this young company’s major customers are CNPC and Sinopec. For those unfamiliar with those companies CNPC is China's largest oil and gas producer and supplier and Sinopec is another major petroleum company in China. Recon has provided services to Sinopec since 1998 and CNPC since 2000. Recon has conducted automation projects for 80% of CNPC and Sinopec's oil and gas fields, covering three of China’s four highest producing oil fields in Daqing, Shengli and Xinjiang. These seem like pretty strong relationships with growing customers.

Small Float - The Company will have 3.9 million shares outstanding after the offering. However, the shares in the tradeable float is ONLY 1.7 million shares. With this small a float you will get a lot of volatility but also the possibility of huge gains as traders buy the stock up on limited supply. This is often when momentum traders come in and things can get crazy to the upside.

Lots of Cash, No Debt – After the IPO, the Company has about $11 million in cash ($2.8 a share) and virtually no debt. That's a lot of cash relative to its current market cap of approximately $30 million (1/3 of the cap in cash).

Insider Ownership – Directors and Executives will own over 50% after the IPO and are selling no shares in the offering. That shows a strong commitment to maximize shareholder value.

Earnings / High Margins - The Company did $9.1 million in revenue in nine months ended March 31, 2009 and diluted EPS of $.83 with net income margins over 20%. Net Income grew over 57% for the nine months ended March 31, 2009 over the same nine months of 2008. The Company should report year end (June) results in the near future and I’d expect approximately $1.10 in EPS for the year on strong top line growth. That would put the current PE at around 7.5. If you assume earnings growth of 50% for 2010 EPS which I think is reasonable based on the base size of the company and the potential usage of the proceeds of the offering for growth you get 2010 earnings of $1.60. That would put the one year forward PE based on these estimates at approximately 5. That seems cheap to me and sounds like a stock with multi-bagger potential.

Conclusion: RCON is a growing microcap company ($30 million market cap) focused on a strong market segment and has quite a bit of sexiness to it. RCON is an IT company, it provides services to the energy industry, and it’s the only non-state owned Chinese oil and gas service company public in the US with great customers. Additionally, earnings and growth could indicate that the stock is undervalued and I expect this stock to hit radars once it publishes June results and reports over $1 in EPS for the fiscal year. With the Company’s float being so small, the stock could get bid up significantly and have the fundamentals to back the price gains up unlike many other small float momentum plays. I like it right here at $8 a share.

Disclosure: As pointed out on this site before I am and have been long RCON and my blended basis is around $6.50.

Also, readers let me know if you like these profiles... if so, I will continue to write them. If not, I won't - how's that sound?

Friday, August 7, 2009

Market likes the employment data early today, what about later?

Some OK things that CNBC will be jumping up and down about but it's not "all good". Excerpt below is with the help of (a great info site).

"Payroll losses were reported across nearly every major category, with the exception of small increases in education and health services (+17K), leisure and hospitality (+9K) and government (+7K). Additionally, 1 out of every 6 workers over the age of 16 still lacks full-time employment. The number of discouraged workers was 796,000 in July, up by 335,000 over the past 12 months.

The difficulty in finding a new job is best reflected in the extension of the average duration of unemployment to 25.1 weeks from 24.5 weeks. This is the highest since records began in 1948. More alarmingly perhaps is that 1 out of every 3 unemployed workers has been unemployed for 27 weeks or longer."

Total number of jobs lost since December 2007 is 6.7 million. That's nothing to party about if you are this guy.

Could this be the pop to short as the big boys sell the news this morning. It could be and I will be looking to add to my short line sometime today if the action dictates the momentum is fading... that said, the squeeze play has been in vouge so watch out players.

9:52 update: Market hanging pretty well... the longer they prop it up more likely we squeeze through the highs. Financials holding well so far and they have been your leaders. Do we get the blow off top today? 1014/1015 in S&P will be a tech hurdle...

3:15 Update: Going against the recent grain and short into the last hour. Most days the market has squeezed the last hour. Still, shorting some financials/REITS (using SKF/SRS) in addition to adding to my S&P short slightly.

Thursday, August 6, 2009

Chart of the Market in the Depression and Today - WOW!

Look at the chart below - today's market almost a mirror of 1929-32. If we are going into a similar cycle watch out below because this rally may be near it's end. In fact I laid a small short line on the S&P out today. I will be looking to add if we can have one last exhaustion spike...

Need more evidence..from October 29, 1929 until November 13, 1929, the stock market collapsed 49% (2008's was 52%). The market then staged a 155-day rally of 50%. Today’s rally (starting in March ’09) has lasted 150 days and the market is up an average of 50% (average of Nasdaq, DJIA, and S&P 500). The 1929 market then rolled over and collapsed another 70%. Spooky $hit...

Chart and some commentary from Gains, Pains and Capital.

BoE raises quantitative easing total to 175 bln sterling - more priniting!

BoE raises quantitative easing total to 175 bln sterling, holds rates - Reuters

Reuters reports the Bank of England extended its quantitative easing programme on Thursday, raising the size of its bond purchase scheme to an unexpectedly large 175 billion pounds from 125 billion, and held interest rates at 0.5 percent. The decision enables the central bank to continue its programme of asset purchases with newly created money -which it started in March to boost Britain's recession-hit economy- as the last of the 125 billion pounds was spent in late July. "The Committee expects the announced programme to take another three months to complete. The scale of the programme will be kept under review," it said in a statement. Economists had been evenly split on whether the BoE would choose effectively to print more money to buy assets such as government bonds and corporate debt. None had expected a change in Britain's record-low interest rates. The BoE has received approval from Britain's finance ministry for the extra money. When the BoE launched quantitative easing with an initial 75 billion pounds in March, the finance ministry had allowed it to create up to 150 billion pounds of new money.

Everyone printing - it's the thing to do I guess. Hey, it makes the markets feel good everytime they do it, it seems. Destroy all currencies and let other assets move up. I also like that they refer to this as a scheme in the article.

Wednesday, August 5, 2009

Recon Technologies Inc. Video - Finally Getting Noticed!

This thing is up 50% since I recommended it at $6 last week... nice. Like I said, momo traders picking it up and I expect $1.10-$1.20 to be reported in the next couple weeks so you could argue it's still cheap. Would $15+ be out of the question?

Also, DGW up another 7%+ today... hope you guys have bought some of these most recent rec's.

This thing is up 50% since I recommended it at 6 last week... nice.

Nearly half of mortgages seen underwater by '11 - That's not good! reports the percentage of U.S. homeowners that owe more than their house is worth will nearly double to 48 percent in 2011 from 26 percent at the end of March as home prices continue to fall, Deutsche Bank said. Home price declines will have their biggest impact on "conforming" loans that meet the underwriting guidelines of Fannie Mae and Freddie Mac, the bank said in a report. Of those conforming loans, 41 percent will be "underwater" by the first quarter of 2011, up from 16 percent at the end of the first quarter 2009, it said.

This is a remarkable stat - if true. What does this mean? The pain ain't over for banks that's for sure. Do you feel like walking away from your house...many will.

Treasury plans for more sales of TIPS - because China says so?

WSJ reports the Treasury Department, seeking new ways to help fund its budget deficit, is likely to announce on Wednesday a plan to ramp up sales of inflation-protected bonds, according to people familiar with the matter. China, the largest holder of U.S. government debt, is among investors that have indicated to the Treasury that they want to buy more of the securities, which offer protection against rising inflation, the people said. Officials from the U.S. and China discussed TIPS issuance at high-level talks in Washington last week. U.S. officials assured their Chinese counterparts that they remained committed to TIPS sales, according to a person with knowledge of the discussions. China has accumulated more than $2 trillion in foreign-exchange reserves and has invested about $800 billion in Treasurys. The TIPS announcement will likely come as part of Treasury's scheduled announcement on funding for the third quarter, the people said.

It would seem China sees the possibility of inflation and wants to be protected (to some extent). I don't blame them.

Tuesday, August 4, 2009

RCON - Recon Technology: Moving up near all time highs on strong volume

Don't blink because this thing could be at $8-$9-$10 in a blink with its microfloat... the flip side of that is it could be back at $6 in a blink too. I am playing the long side and can certainly see this thing become a momentum favorite as it has some real fundamentals and is in an interesting sector - China, energy, tech, low PE, low float. That could seem sort of sexy to traders...

Also, my previous pick DGW up 7% today and about 50% since my rec a few weeks back. Precious metals up, UST bonds down, let's get on a roll folks.

Goldman tells employees to stop acting "Goldman"

Goldman Sachs CEO tells employees to avoid making big-ticket, high-profile purchases - NY Post (164.10)

NY Post reports co CEO has warned his employees to avoid making big-ticket, high-profile purchases as the gold-plated Wall Street co hunkers down amid a firestorm of public and political anger over outsize bonus payments. According to sources at the bank, Blankfein says purchases should be toned down in light of the billions in bailout money that banks, including Goldman, have gotten from Uncle Sam. A source within the bank said Blankfein first began calling for an end to the conspicuous consumption late last year, but has stepped up his campaign in recent weeks as the White House has sought to rein in compensation and as the co has gotten dinged by a pair of high-profile magazine articles. "This is a sensitive time for us, and [Blankfein] wants to make sure that we're not being seen living high on the hog," said one Goldman exec.

Monday, August 3, 2009

"A lot of room to the upside for gold"

DGW - one I have mentioned many times before

reported great earnings after hours. DGW I rec'd at under 22 and it will open tomorrow above 33 - nice move.

I see a similar result when RCON reports results this month. The full year earnings on that stock could be $1.10-$1.20+ and the stock trades at $6 right now. With RCON's float of less than 2 million it could easily double within a few days after it gets recognized and becomes a momo favorite which I can surely see happening. Still, lots of risk in that one but you know that I have moved some of my chips in the pot there.

S&P 1000 - dollar wacked

Well, as I expected the rally in the S&P is looking to squeeze up to 1000 or higher here. A part of this is being driven by the dollar dropping. The commodities are working today as well. Sorry for the limited posting lately, but I have been out of town quite a bit.

Where will the rally stop - seems like there may be some more squeeze power left from where I sit, but a lot of shorts will line up at S&P 1000 that is for sure.

None of my content is a recommendation to buy or sell any securities.

Please do your own research or consult an advisor before making any investments.