WED. JUL. 30 THOUGHTS

Recently, a friend of an Richard Rizzo took a trip to Mongolia. While on her way to that country, her flight had a stop in Beijing, China. The most notable part of that experience was the fact that her boarding passes were issued to her…in handwriting. That’s right. Three weeks or so before the Opening Ceremonies of the Olympic games, she was getting issued boarding passes in handwriting rather than electronically at what will be the epicenter of the world’s airports for a spate as eyes shift toward China for the Olympiad. One can only imagine the scene at this airport in the next few days as the world’s finest athletes arrive at that facility. So how does this relate to day trading? Many of the companies that day traders speculate upon- particularly in the next few days- will be those of Chinese variety. The stocks of such entities as Netease (NTES), Sohu (SOHU), and China Prosperity (CPSL) are but a few stocks that may be in the news as their names get more known by the world’s investors. That said, be sure you know what it is you are trading as well as the scale of the illiquidity involved. Now, obviously, these things are not long-term investments for day trading, but many day traders will be dealing with these small stocks so realize the scale (or lack thereof) of these stocks based on that aforementioned parable. China may well become an industrial power, but for day traders, it will be an interesting play these next few weeks in all likelihood yet it is one that will involve much rapid momentum movement.

Stocks throughout the rest of the world were up on the heels of the nice day in the U.S. yesterday market-wise. Oil is down some more as well. Certainly at the open, look for some continued strength; from there, it will be an A-B-A2 higher in all likelihood; if not, be looking to sell relative weakness.


Reiterating-New code for the next few days if the whole story is not there due to an expansive number of ideas-If something is good, assume either a short thru unchanged or an A-B-A2 based on direction of the market unless specifiedIf something is bad, assume either a buy thru unchanged or an A-B-A2 based on direction of the market unless specified


Good-

LRCX- good earnings

BWLD – good earnings

BEXP- announced a drilling find

STAR- great earnings

CTX- good earnings

CMI- great earnings

SPW- good earnings

NATI- great earnings

HOKU- signed $300 million deal which could change the way people look at this company
Bad-

ELN/WYE- phase II results out and viewed as very negative by the market

USS- closed near low of day

IAR- closed near low of day

VRAD- closed near low of day

ERTS- weak earnings

CEPH- weak earnings

CBG- terrible earnings

MET- terrible earnings; missed quarter and warned

SIMO- missed on quarter and warned on year

EQ- bad earnings

ALGN- bad earnings

HBI- bad earnings

CTV- bad earnings

ULTI- terrible earnings

OMX- bad earnings

GLW- bad earnings

GRMN- terrible earnings

Good luck today.

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