A wrap of the day - July 6th, 2007

The day started out with futures basically flat. Then the unemployment data was released and there were no surprises. It came in as expected. At first the market reacted a bit negative to the numbers. I believe for the most part the data was priced in the markets already.

Then by about 10am the mood turned positive and we had a smooth, somewhat uneventful day of lower than normal volume buying. Best sectors today were Gold,Coal,Housing (hard to believe!), Retail,Silver,Energy,Computer hardware,Internet,Semis,Steel, and Brokers

The ones that did poorly: Paper, Telecom, Biotech,Utilities,computer software

Rebeltrader plays did well today, all posting a move up except for AKS which was ended the day flat but still a stock I am bullish on. The speculative play on WWAT shook me out but I am going back in when the buy point is reached again. I stand committed that WWAT has some large gains possible once the volatility in it settles down. As stated in the previous posts on WWAT my plan is to scale into it (scaling into a trade further reduces your risk) as you only use a small piece of your swing trade slot funds to "test the water" and establish a position at the entry price. Then we wait, we wait for confirmation that the buyers will out number the sellers wanting to take profit on the news that there was a huge insider buy of the stock. You must keep in mind that the small and micro cap stocks there is some violent moves in the price (up or down). And a small move equals a large percentage due to the low price of the stock. So it is subject to more profit taking whenever there is news or anything that suggests the company is doing well causing the price to advance.

But WWAT has some longer term swing potential. We got thrown off the bull but this is one I am going to wrestle again.

Some were pointing out that Jones Soda (JSDA) was doing well coming off of a down trend. The chart established that there are two important resistance levels that the price has to close above (key word here is close, it has to have closed above $17.00 to show confirmation that the pattern was holding. The massive sell off today showed the pattern is not holding and not ready yet) first before we can consider it for a swing trade. And today JSDA failed that test again by not closing above a key milestone point. JSDA will become a watch list item for the RebelTrader portfolio and will have strict entry points. So far that point has not been reached. Potential swing trades must have unique chart conditions which have to be met. A sequence of events and a confirmation that it is ready to grab on the move. Those conditions have not occurred yet. But when they do we will trade it methodically and by the chart.

Watch the site over the weekend for some new watch list items and some more memebr requested charts.

Have a great weekend to all.