THURSDAY MAY 29 THOUGHTS

Summertime. With the exception of seasonal events like earnings season (July 15ish-August 15ish) and of course isolated major financial events like the beginnings of the subprime meltdown last August, the tone of the markets is gentler in the summer. Equities tend not to react as violently to external forces as in the other seasons and this makes intra-day trading much more difficult. Whether one relies on news flow (which is not as heavy in the summertime) or if one relies on wide price swings, day trading is not the same from Memorial Day to Labor Day as a general rule. This is an important point because many people get into exceptional intra-day trouble in the summer. Basically, if one is trading 2,000 to 5,000 shares of a stock and the movement doesn't happen (nor as much movement), the shares are quickly let go at a small loss. This 'death by 11 small losses in a row' is a fast way to lose money net-net day-in and day-out. Thus, the summary is this: 1)if you have an opportunity particularly in the early part of the day, hit it with all you can stomach because there just won't be as many opportunities the rest of the day. This, by the way, is good to keep in your mind the rest of the year also; making a little early money tends to beget confidence and loosen stress. Second, if you're thinking a little more often about the beaches, the weekend in the Hamptons, the barbecue, and the like- realize, most of us are as well. The bright sunshine is a positive force for most people; it puts us in a better mood overall and makes most if not all of us want to be outside rather than staring at a computer terminal. Therefore, it is harder to focus which leads to less volume for the trading community as a whole, but more chances to lose for the day trading community as well. Realize this subconsciously. Trade when needed and when warranted, but don't overdo it when there is nothing to do because moves that often occur from Labor Day to Memorial Day aren't as readily evident during the summertime.

Overnight, the overseas equities markets were all up with Tokyo being the strongest. Oil is down. Bonds are weak (more on this tomorrow). The dollar is up. Basically, a continuation of the general slop from yesterday with light choppy action per the theme above seems to be in full force today- should also note it'll be 73 and sunny today and 78 and sunny tomorrow in New York City.

SHLD- abominable earnings. Was going to say 'buy thru unch,' but it already got above there. So, I'll go the other way...there is no way this stock should be up. if the market sells off, short thru unch. Conversely, it's that old A1-B-A2 pattern anew. If it opens at 90, falls to 89.50, and rallies to 90 (or something like this), buy 90 because it should be down and it is not.

JOYG- great earnings. Right inudstry. Same A-B-A2 thing. If it opens at say 81.50, falls to say 81, and goes back to 81.50, buy 81.50 on the A2 point because more short covering will likely enter.

COST- neutral earnings. Stock traded down 2 pre-open. I actually bought the stock just thru unchanged this morning and made 55 cents on it fairly fast which shows the power of what we are trying to do here. I look for similar action to SHLD...short thru unch, but if not, A1-B-A2 -i.e. open of 73.50, down to 73.35, buy 73.50 if it cannot go down. Something like that with the numbers, but definitely like thta with the pattern.

GNK- odd. They had a share offering at around 75.50 last night. Stock is 70.50. One would think that the stock should trend upward...if it doesn't, short thru unch.

SB- dry bulk shipper going public. If SB weakens from its open, track DRYS, EXM, and DSX among other dry bulk shippers as shrots because they've all been strong.

COP- exploded into close yesterday on buy on close imbalance. Stock should trade down this morning because the only reason it rallied was because of the major buyer. If it opens lower, goes to unch, and oil is rallying, buy thru unch.

SINO- has been pummeled after its explosive post-IPO rally. If it opens down this morning and looks to go thru unch, buy it.

NR/GSI/CF/TRA/MOS/ATI- all strong yesterday...if they open down and go thru unch, look to buy any of them on short covering.

TRN/OTTR/OC/WGOV/TNB/KDN/MTZ- all on Cramer last night...all repeats from previous shows. Look to gently sell into strength post-open.

BIG/DSW/GCO/HNZ- other earnings plays...watching.

solars (FSLR, et al)- FSLR price target downed this morning at Merrill Lynch; others like ESLR cut. Whole sector weak.

After-hours: DELL,ESL, JCG, MRVL,MW, OVTI, SIGM, WIND

Good luck.