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Paydays Come From Having A Good Watch List

|Includes: GOOG, IRBT, MOBI, VeriFone Systems, Inc. (PAY)


Yesterday in our newsletter we said:

“Fireworks are expected after the close with GOOG’s earnings. It ought to be interesting to say the least. If they are bad? It might allow us our in the face of fear trade on AAPL calls via guilt by assoc. If good? We still have the downtrendline to cross to the upside first with AAPL.   Google at the moneys are 14 points for the calls and 13 points for the puts for a spread when you add the two together of 27 points. We’ll see if the old adage of a 27 point move in after hours is going to happen this time around. One problem, we don’t know what way, and that’s always the way it is. At the money straddles just don’t have the allure they did in the 90′s you know. Ought to be fun to WATCH.”

Anyone see the initial after hours action? Yep down 26-29 points and in line with the straddle numbers.  Now? Out of control. So anyone who actually had the guts to straddle this issue into earnings actually got paid (that’s a surprise). The calls went to zero and the puts took off like a rocket. Amazing.

Why it pays to pay attention to what your watch list is doing by the action the names on it exhibit

As we all know the market has been working its way lower here for days now, not hours anymore. All the while though there are individual names that have been trading to the beat of their own drum.  Three such names we’ve highlighted in the last week have all done very well with 2 of them taking off like rockets for you do it yourselfers as well as those who trade in tandem with us.Earlier in the week we had IRBT sporting a nice POH within the channel at the 50-day and trend channel support now thanks to a NAVY contract has tagged trend channel resistance.

Then there is PAY.  Here too a name that was very similar chart patternwise to IRBT. Hey 52 to 54-55 isn’t all that bad in a couple of days percent wise. A retest of its highs are around 57-58 by the way.

Then there is MOBI which is now on a tear and out of control.  It triggered a trade at $12.39.  3 Days later, it's up over 30%!!

So you see it pays to pay attention to our watch list and also pays to memorize that of the following phrases:

“Let your stocks tell you what to do by the action they exhibit”

 ”It’s a market of stocks not just a stock market”

All the while the indexes have been pulling back.We aren’t out of the woods just yet as short term we are gyrating back and forth in what appears to be a corrective fashion (stable and controlled) vs. an impulsive fashion (take you out and clean nervous Nellie’s clock).  That potentially bodes well for things from here. Couple that with a lot of names setting up decent long side structure? Well what more can one ask for in here?

It’s the weekend and we’ll have more to say about the indexes then and oh by the way, we have about 4-5 new long side names to add to the watch list in our newsletter this weekend — all decent looking POH’s developing and one could say a few with completed cups that are in the handle.

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