Referencing the weekly homework and stock radar, I am highlighting a few of the charts below for potential trades in undervalued stocks.

After the first 90 minutes of action Tuesday morning, the enthusiasm was quickly sucked out of the market for the rest of the day. We gapped up on the "Greece is saved" continuing theme only for volume to fall off a cliff and the action become very boring to watch or trade.

The bears had a prime opportunity to catch the bulls off guard with the gap up. They had an opportunity to try to punish them. All they were able to do was bring us back to even on the day. With that being said, the momentum is still to the upside, so we must be cautious of a pullback, but still stick with the trend that continues to work.

Oil stocks have been outperforming lately

Referencing the weekly homework and stock radar, I am highlighting a few of the charts below for potential trades in undervalued stocks.

As expected, The "Greece is saved" theme continued yet again. Stocks bounced back on Monday as Greece finally approved austerity plans late Sunday. The next test for the plan is a vote on Wednesday from the European finance ministers. They will vote to approve the bill.

I'd be interested in the statistical data for how many times our markets have run-up from similar type news over the past year. Wednesday's vote from the European finance ministers to approve the bill creates another catalyst. This means we could see yet another "Greece is saved" move up in the markets, so be prepared.

The concerning part for the bulls is that today was reported as the lowest volume day in a decade for a non-holiday. It is hard

Referencing the weekly homework and stock radar, I am highlighting a few of the charts below for potential trades in undervalued stocks.

We had a gap-down to start the week off and as usual in this new environment, the bulls came to the rescue. With the Greek deal being far from agreed upon, many thought today was the day we'd finally receive some weakness which would hopefully reset the many overbought charts. Instead, the trend for the past few months continued yet again. A gap-down finds enough dip buyers that it can not break to new lows, so we drift north for the rest of the day towards even. This action is not helpful for traders as we must be extra selective with our capital keeping trades either smaller or fast and aggressive as we trim into the close rather than hold overnight.

Today was not a day we

Referencing the weekly homework and stock radar, I am highlighting a few of the charts below for potential trades in undervalued stocks.

We finally saw signs of consolidation this morning, but it was short-lived creating continued frustration for the bears. The trend over the past few months has been that gap-ups tend to drift down towards the rest of the day and gap-downs tend to drift up the rest of the day. Today continued that trend as we drifted back towards even on the day.

I expect this type of action may continue for the week as market players re-position their portfolios after the FOMC decision/data last week. Bonds rose significantly and as I noted Sunday night, we are seeing a time that a large disconnect between bonds and equities can grow. The day these two correlate once again may be a very devastating day as the disconnect grows

Referencing the weekly homework and stock radar, I am highlighting a few of the charts below for potential trades in undervalued stocks.

On the outside, it may look like Monday was a flat day in the markets, but the underlying action was far more bullish than that view provides. Bonds were weak again helping provide fuel for equities in the form of additional support and "ammo" for dip buyers to put to use. If bonds continue to weaken this week, all of this talk of a market top forming will likely be far too early.

It seems to me that everyone is looking for a top and trying to predict a market turn. It seems many market players are expecting something negative to happen and are being cautious, even trying to dip their toes in various short indexes. It is that which makes me more bullish for the short-term.

Yet again, Newpark Resources (NR) beat earnings and the stock is moving towards 52-week highs. We tried this trade back in August after the last earnings beat. In retrospect, the timing was not right as that week ended up being the beginning of the summer sell-off that put us in bear market territory. NR bottomed alongside the markets in October and has been on a relentless rally ever since. Now, we are just under the 52-week high of $10.09 with significantly more accumulation than previous attempts to break it, giving increased odds of a breakout to profit into.

Yahoo Finance describes NR as follows:

Newpark Resources, Inc., together with its subsidiaries, provides fluids management, waste disposal, and well site preparation products and services primarily to the oil and gas exploration and production industry in the United States and internationally. The company operates in three segments: Fluids Systems and Engineering,

This week's trade of the week is likely to be another tough one if the politicians cannot come to a helpful solution and bipartisan agreement to our debt ceiling/deficit situation. Last week was very bearish with little signs of bullishness making any upside trades very complex. I have been sitting on my hands after stops were triggered and waiting patiently on the sidelines to aggressively act, something that is very tough for me as I seek excitement and thrive on fast-paced action. I expect a pre-market gap in the markets for Monday morning, I am just unsure which direction at the moment, but slightly leaning towards bullish. As I'm writing this, we are hearing potentially positive headlines of a deal, but even if we reach a deal before the deadline, will it be beneficial? If not, any bullish action could be short-lived. With that in mind, any trades this week

Dejour Energy (DEJ), known as Dejour Enterprises prior to March 2011, engages in acquiring, exploring, and developing energy projects with a focus on oil and gas exploration in Canada and the United States. According to the latest filing, DEJ is an independent oil and natural gas company operating multiple exploration and production projects in North America's Piceance Basin (107,000 net acres) and Peace River Arch regions (15,000 net acres). Dejour's seasoned management team has consistently been among early identifiers of premium energy assets, repeatedly timing investments and transactions to realize their value to shareholders' best advantage. Dejour maintains offices in Denver, Calgary and Vancouver.

Fundamentals/Company News

Per its latest earnings for year-end 2010, DEJ has total cash of about $4.88 million and debt at $5.18 million. DEJ has nearly zero short activity in it. Yahoo Finance shows only 700k shares short in DEJ as of April 29. 2010 revenues

Exelixis (EXEL) is a speculative biotechnology company that engages in the discovery, development, and commercialization of small molecule drugs for the treatment of cancer, metabolic and cardiovascular disorders. Our short-term focus is on the cancer catalyst.

According to EXEL's website, its compounds primarily target multiple receptor tyrosine kinases simultaneously. Its product candidates include XL184, a Phase 3 clinical trial compound that inhibits MET, RET, and VEGFR2, which drive tumor growth and vascularization, as well as Phase 1b/2 clinical trials compounds, including XL147 that targets phosphoinositide-3 kinase (PI3K); and XL765, which targets PI3K and mTOR, kinases in the PI3K signaling pathway. The company also has various compounds in phase 1 clinical trials, including XL518, a small molecule inhibitor of the MEK; XL228, which targets insulin-like growth factor type 1 receptor, an RTK in a range of human tumors; XL139 that targets Hedgehog; XL413, a small molecule inhibitor of the serine-threonine kinase

Gastar Exploration (GST) is a highly speculative natural gas company based in Houston, Texas, that engages in the acquisition, exploration, development and production of mostly natural gas and very little oil in the United States, with a strong allocation to the highly popular Marcellus Shale territory. As of December 31, 2010, the company held leases covering approximately 33,400 gross acres in the deep Bossier gas play in the Hilltop area of east Texas; and had approximately 87,700 gross acres in the Marcellus Shale in the Appalachian area of West Virginia and central and southwestern Pennsylvania. It also owned an average non-operated working interest of approximately 40% in approximately 43,400 gross acres within the Powder River Basin of Wyoming and Montana.

GST recently reported uninspiring earnings during this current commodity correction, which is fueling a strong downside move over the past few days. To most, the uninspiring earnings were expected, but

Continuing with the overall energy theme, Magellan Petro (MPET) is a very speculative oil and natural gas play with a base forming to run up from. The current setup is near two support levels, with the key level at $2.35, so you know where to place your stop losses. Above that, we have significant upside potential and already cracked two resistance levels earlier before volume slowed down and settled near even on the day. Since the drop was due to lowered bids, not sellers pushing down the bulls, that is a bullish theme for a low volume speculative stock like MPET.

MPET and its subsidiaries engage in the exploration for, and development, production and sale of oil and gas reserves in Australia, North America, and the United Kingdom. Its assets include the Mereenie, Palm Valley, and Dingo fields in Australia; the East Poplar and Northwest Poplar fields in Montana,

Energy, specifically oil and natural gas, continues to be a favorite sector of many, including me. In looking to capitalize on that strength, I have entered a trade in Gran Tierra Energy (GTE).

A successful trade in Exelixis (EXEL) has been sold down significantly as the support was showing weakness. EXEL was profitable but not nearly as profitable as anticipated. With the ASCO conference coming up in June, it should regain support soon and, if healthy, I will reload my position and revisit the upside trade.

For now, it is time to look elsewhere until that chart shows more clarity to the upside. It is important not to become emotionally attached or loyal to a stock which has zero emotional attachment or loyalty to you. When the chart starts to break down, I will get out and focus my efforts elsewhere. If I was wrong, that's fine, as I can

It appears the Egyptian situation is making headlines once again as President Mubarak has refused to be pressured into resigning but has conceded all the power to his vice president. His term is up in September and he has further conceded he will not run for re-election. This is not enough for much of the population. They want him out now and many protesters grow more furious as the situation unravels. The military has some key decisions to make and that will likely keep this event a hot topic.

While this is a very dangerous situation for the United States as many anti-Americans groups would love to take power in Egypt therefore reducing our influence in the Middle East, this article is not about those very serious concerns. This is strictly about what opportunity is presented in the stock market.

Oil has been beaten and battered lately with the spread

Repligen Corporation (RGEN) is a biopharmaceutical company which engages in the development and commercialization of therapies that deliver value to patients and clinicians in neurology, gastroenterology, and orphan diseases. Over the past week of this market uncertainty, RGEN has continued to create new 52-week highs as biotech stocks can many times move to the beat of their own drum.

RGEN has two important clinical trial catalysts in the current quarter and the optimism is likely part of the reason for the bullish momentum we have seen recently. Investors are looking forward to 1st quarter results for Phase 3 RG1068, Pancreatic Imaging, and Phase 2b RG2417 for bipolar depression. If positive results are released, we may see significant momentum creating interesting trading opportunities. Along with the trial news, we can expect RGEN to form strategic partnerships for the top drugs in it's pipeline sometime in the near future. With plenty

The stock pickers market has returned in full effect for the last part of 2010 and I fully expect it will continue into 2011 for the time being. The trend is up and while we have many trying to call a top nearly every day, we must not fight the trend. Until the indices break to a lower low, we must embrace the trend and ride it while we can, but stop losses and risk management are still key. This means you do not want to be caught fully invested and holding into a correction. Make sure you have plenty of cash on the sidelines to add in case of a correction while taking profits and using stop losses to decrease risk. A correction is inevitable but the action has not tipped us off on when that day will be or how painful it will become. So for the

Gastar Exploration (GST) is a small-cap natural gas stock in the highly popular Marcellus Shale and is currently flying under the radar of most. Due to its recent litigation, those who did come across a promising GST tossed it aside very quickly. The stock price continued to stay under pressure as most liquidated their shares. But the stock has recently come to life and the technicals are only growing stronger.

The litigation is finally over and unfortunately, GST paid a hefty price to settle. The roughly $21 million settlement is weighing on the financials, but the future looks promising if you are bullish on natural gas as the next hot energy sector. GST owns approximately 40k acres in Marcellus Shale, which is the place to be these days, and has some lesser discussed land as well. Now that the litigation is over, GST can look to expand its portfolio.

As expected, Santarus (SNTS) reported a 3^rd quarter loss after-hours Monday (see conference call transcript here). This was mostly attributed to reduced sales because of generic Zegerid competition, one-time costs and the fact that their diabetes drug GLUMETZA shipments did not resume in August, as originally anticipated. The loss was more significant than analysts expected but, the company is still likely to rebound and has significant cash reserves to do so along with a solid pipeline. Unfortunately, the recovery might not happen until sometime in 2011.

While this path to recovery, after they lost the heartburn drug Zegerid patent ruling, was expected to be rough, this loss still came in well-below estimates. The company lost $25.7 million, or 44 cents per share, compared with profit of $5.3 million, or 9 cents per share, during the same period in 2009. Analysts expected a loss of 21 cents per

Santarus (SNTS) took a beating in April when it received a patent ruling loss related to its heartburn drug, ZEGERID. SNTS lost about 40% and continued a downtrend thereafter until September. On September 9th, SNTS received exclusive rights to manufacture and market CYCLOSET. This started the turnaround in the stock that has continued for over a month.

SNTS has to financially recover from the loss of ZEGERID even with the appeal it made. The appeal process is likely to last at least another year or more. SNTS last reported total cash of about $99 million with debt at only $10 million so the company is in a solid position to recover.

However, GLUMETZA shipments did not resume, as expected, in August. Therefore, estimates have been revised lower for the upcoming earnings release in early November. CYCLOSET is expected to be released in November and this should

Monday saw another gap-up followed by dip-buyers showing up to lead us toward a strong close. Volume was decent for this seasonal slow time with this making four straight positive closes in the S&P 500 and eight out of nine positive closes during this rally.

Technically speaking, we are overbought but don’t tell that to the bulls right now as the momentum is impressive. The problem I see is nobody fears the downside anymore and that tells me we could be nearing a top. However, if retail numbers meet or beat expectations Tuesday morning, we could see another strong gap-up and even more bullish behavior while ignoring any other economic fears.

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Expectations are low therefore you must expect that some reports will beat expectations but, that is not to say we have a strong economy in the least bit. I believe Doug Kass was the first to

The Labor Department reported Thursday morning that new claims for unemployment dropped a seasonally adjusted 27,000 to 451,000. Unexpected bullish news, right? The markets immediately gapped-up on this information as the bulls found good reason to buy. Unexpected positive news is almost always met with a bullish move north as it’s rarely priced in. However, a useful tidbit of information about that shockingly large drop came out after the gap-up. Bloomberg reported that nine states didn't file claims data to the Labor Department in Washington because of the Labor Day holiday earlier this week. California and Virginia estimated their figures and the U.S. government estimated the other seven. Coincidence in the large drop or not? We will see when the next revision comes out but usually those revisions fail to make headlines as we are already focusing on future claims. This has been a great cover-up method for a long