Market update - 06 Dec 2007

Morning rally lost momentum in fternoon as fears in housing market took its toll. Also weak metal price pulled the miners.

DT Candidates
JLH.L - Penny share. Avoid
NGP.L - Penny share. Avoid.
PLAA.L - Volume too low. Avoid.
RHL.L - Volume is low but this look a good candidate. The share was up on following news
"Engineer Redhall has tripled full year profits thanks to two significant acquisitions during the period and has started the current year in line with expectations. "

The share has been moving sideways for last few months.

Double Trouble - 05 Dec 2007

GMG came up on DT scan on 30th Nov. It was 10% up then. Today the stock went up almost 16% on the following news.

"Computer games retail Game Group shot forward after the Competition Commission conditionally agreed to allow its acquisition of rival Gamestation."

The volume looks good. A buy on pullback.

Market Update - 05 Dec 2007

Another fresh rally today. 65 days is still red so it is still on the exteme caution side.

DT candidate for today

CRG - 22 and 65 days weakness is within 10%. Volume is low, otherwise looks good.
QTI - Volume very high. Penny share so any minor move can have major effect on your profits. Better avoided.

There were many stocks breaking out. Here is a list of some on verh high volume (1M and above)


AAL.L
ABG.L
AFR.L
ASC.L
AU.L
BDEV.L
BLT.L
BRE.L
CHS.L
CHTR.L
CNE.L
COLT.L
CPH.L
DCI.L
DSGI.L
FKI.L
GMG.L
HOME.L
KIN.L
LII.L
LOG.L
MARS.L
MXP.L
NXT.L
RDW.L
SOLA.L
SXS.L
TPT.L
VED.L
XTA.L

Market Update - 04 Dec 2007

Market couldn't hold the rally from last week. All stocks which had a breakout last week are breaking down this week.

Market monitor is showing exteme caution.

DT Candidate for today
NOP - The share has rallied on following news

"Northern Petroleum's first independent report on its Giove discovery in the southern Adriatic Sea has indicated 19.67m barrels of probable oil reserves. "

It pulled back almost 35% from peak in last 65 days so may not be a good buy. Risky option.

The Long and Short of it.

Often you must have heard or read somewhere, "go long on share xyz" or "go short on share abc". I am sure like me even some of you must have wondered what these terms mean.

Well here is what my understanding is:

Going long is when you buy a share expecting it will go up over a certain period. So you will buy at price x and sell in future at y when y>x. So your profit is y-x.

Going short is when you sell a share(which you don't own!) expecting it will fall and then buy at a lower price. Say you sell at x and buy at y where y

There is risk associated with both methods. In case of long, if you buy a share and if it drops in value, you loose money. In case of short, you will loose money if the share price rises. Shorting a trade is for more experienced users due to the risk associated with it.

I am still naive in this area. So please feel free to correct me on anything I have mentioned above.

Raj

Stocks doubled in last 1 year

Following stocks have gone by by more than 100% in last 1 year.
ABH
CLE
EO
GMG
HGM
HMS
IHP
UTN

Following stocks have gone up by more than 200% in last year
EME
GON
PET

All of the above stocks were up by more than 4% on Friday. Some of these stocks have the potential to rally further.

Raj

Market Update - 30 Nov 2007

Number of breakouts are on the rise. Some of these are having follow through days. 65 days is slowing turning towards postitive. If the current action continues, we may see the ratio to be in positive by mid next week.

DT scan has following candidates
GMG -
This came in DT scan few weeks back. Since then the stock has risen by 10%. Volume looks good. Also this stock has been moving sideways in last few months. It is almost ticking all boxes of DT. A good buy.

GON - Pull back has been more than 10%. Pass.
HMS - Pull back has been more than 10%. Pass again
IHP - Penny share - Pass.
PET - Pull back more than 10%. Pass

4% on high volume breakouts
BOY
BUR
COLT
GKN
GMG
LLOY
MPI
PDL
PZC
SL
STAN
TLW

Raj