Since I focus on individual charts more than I do to any of the talking heads on the web or TV, I can manage to fight through all the confusion. However, this has been a market that has definitely not helped me out at all. My charts are basically worthless to me, right now. Sadly, this year has seen nothing but disappointments left and right by HOT HOT HOT stocks with great charts. Even when those chart patterns had powerful fundamentals driving the price higher it seemed after the perfect buy signal was given that it would fail.

Recently, despite the low volume, the market has produced some nice charts, making some (including myself) believe that this rally could last longer than expected. However, today put an end to all of that thought. Most hot stocks also felt the wrath of the market today as everything I owned seemed to pullback.

The biggest problem on top of all the selling and my recent longs was a mistake trade I made yesterday. I added an extra 0 to ASYS and ended up with a HUGE loss by the time I realized my mistake. By the end of the day, I saw the rest of the damage to my recent long and can honestly admit that I have made my biggest blunder since IWOV in 2000 when I added to it as it fell. Thankfully IWOV rallied BIG in the April to August rally saving my ass. However, my luck has turned the other way and not only are all my green volume/BOP-filled charts failing but now I am making severe trading mistakes.

As you all know what is more upsetting is that the stock I make a mistake on ends up nailing me with a 12% loss. If some of you do not know my personal story, you have to know that I have been through a lot and even wanted to commit suicide at the age of 11 because my mother was completely insane and abusive. So when you are long 120 stocks (only 8 have any real size to them so don’t freak out just yet) and short 40 stocks and somehow the ONE TIME IN YEARS you mess up happens to be in the stock that produces my biggest loss what can you say? I mean seriously what can I say but the F word 20000 times? Even professionals make mistakes and even after a life filled with NOTHING but bad luck I continue to suffer at the wicked hand of Mr. Market.

The point of that last paragraph is to help you recognize that even when everything seems against you, it is totally stupid to just give up because that is when everything can turn. And that leads into this very important incident that happened today. If what I write turns out to work out I will be very happy. If what I write doesn’t happen and the market does the opposite…then what can I say but the F word 200000 times? LOL.

When I got back from my doctor appointment (for those of you who do not know I was diagnosed with Multiple Sclerosis this year) the first thing I did was check up on the portfolio to see the damage as I had already learned the outcome of today. What I found was indeed very upsetting and that only compounded on the fact that I made such a HUGE mistake on margin with ASYS. The portfolio lost enough to put me in the red for December when combined with November would be my first back-to-back months of losses since 2001. I have many down months but I have been blessed with this market to avoid a back-to-back for a long time. I had many win-loss-win-loss-win-loss months but that was something I was proud of. While I have plenty of time to make it back, I am beginning to feel like I am off my game and not worthy of trading. This at the time of realizing this was starting to make me very depressed.

That is then when I began telling everyone in the chat room to forget about longs or shorts and to go basically to cash as the market is borderline insane and you simply should not have that kind of a move based on such a moronic decision by one of the biggest fools at the Fed in a long time-Ben Bernanke. His boneheaded decision to lower the rate and discount only 25 basis points not only solidified his short legacy as an idiot but caused the market to crash intraday. This crash should have generated a lot of fear but when I checked the put/call ratio I saw that it only moved up to 1.01 which is high but on the crash we had intraday today in such a short time frame that put/call should have flown to 1.2 or 1.3. So the fact we had such a low jump, combined with the VIX only at 25 indicates we have not seen fear. But we have seen stupidity.

With that in mind I began my routine of looking at longs and shorts. After first looking at my longs it became apparent that the market was not good for longs as there are absolutely no charts out there with any good looks at all besides the ones I am long. There are some setting up like ARL but it is still has too much resistance ahead of it to be a good long. Besides that I really couldn’t find anything spectacular. So now I was for sure I don’t want to be long. But remember I still had the fact I did not want to be short either because the market is acting so insane.

But then I started scanning my shorts and I noticed something very quickly. A lot of the stocks in the scan are breaking down right at key resistance levels after low volume rallies. It was like a light went off. I quickly remembered that I have been warning everyone of this scenario that happened today. Many times I mentioned the past week that our low volume rally might be setting us up for a sell the Fed day on Dec. 11. Sure enough being prepared for that did help keep the pain low today but my error in adding an extra zero to ASYS caused my well prepared strategy to fail. All it takes is one mistake. But by at least being ready for it after watching the low volume rally, I was able to stay short a lot of my stocks in clear downtrends thanks to careful analysis of the major market indexes.

As I went through the scans it became apparent that we are probably at a very excellent area to short stocks. I still don’t believe this it is the moment the market tanks, as AMZN GRMN BIDU GOOG AAPL and RIMM are still trending up even though negative divergences in technical indicators are everywhere and most could be making a double top. But it still could be an excellent spot.

We are very oversold and if you look at the oscillators Helene Meisler use you can see that we are very overbought and that overbought condition from a low volume rally is never good. So now the market is very overbought and we have now had a clear distribution day in the indexes right at key resistance with a LOT of stocks breaking down also at key moving averages and resistance.

Some of these stocks are old leaders in REIT, railroads, and steel sectors and a lot are banks. GS and PRU are two of the great risk/reward plays. When these powerful companies are failing/breaking down with all the former leaders and you see the high flying tech stocks start to look like they are topping, it is time to start thinking about shorting stocks. With the setups I see right now it would be foolish to skip on them.

So after believing I was going to be 100% cash and get out of all my longs and shorts, after going through my scans I have realized that while it is not a good time to buy longs it sure is a great time to short stocks here. Why? Because, we are right at key resistance with stocks breaking down on huge volume compared to their previous low volume rallies. That along with a very weak market that could be headed to a recession has everything in the right trend to be short.

If they all fail, you lose very little. Anywhere from 2% to 5%. If these stocks work and fall I expect almost every single one of my shorts tonight to be able to produce at least a 20% gain. If the stocks don’t work this time, they will soon enough. Almost everything you see tonight, on a weekly chart, is just loaded with distribution. There is virtually no accumulation to the distribution.

I am still going to keep my shorts a reasonable size and am not going to get crazy until those big cap tech stocks you just saw me name top out. When the 50 and 200 day moving averages converge with price then I will start to really look at these hard and that is probably when I will start shorting the market heavy. For now, I enjoy shorting all the great short setups and riding those winners down while cutting my losses of the failures. I have come to a point that in a bear market my main concern is not about hitting home runs but is rather about building a great team that hits a lot of doubles and triples and can steal bases. If I can hit a home run great but look at today for example. The one time I mess up and it is in the stock that loses 10% plus. I mean out of 160 stocks I own, I make a mistake on that one????? Do you folks really think that is just bad luck? No. My life has been nothing but a battle and God has decided he wants to continue to see me struggle. At least that is how it feels. It is really depressing, even for someone who trades as much as me.

Thank God I have skill at this because I have absolutely NO luck. If I was forced to take only one long a day and one short a day out of all my selections, I would more-than-likely go 1 for 5 during a normal Monday through Friday market week. I just have real bad luck and that is why waiting and waiting for the stocks like the ones you will see in the ‘Past Big Winners’ section is what I must do to make a lot of money. Until those chart patterns show up, I have to buy a lot of the top stocks, put decent money in all, cut my losses in the worst, and keep the winners. I will always miss loading up on MA, DECK, and FSLR. But I will always get the RICK and APPY charts. That is good enough for me. That combined with a little DECK, MA, and FSLR can really add up after a while.

The most important thing is to make sure you are flexible right now. Don’t marry the long side or the short side and before I go I must make it very clear that if you want to short the market NOW IS THE TIME TO DO IT. I am not joking around here. This might not be the top, but I can bet that if it doesn’t work out that our loss will be very small. If you wait for the stocks to selloff a few more days before “you are sure that the stock has failed,” you will be in a lot of pain.

Those of you not making money in shorts, yet now your potential short is down a lot further from where you covered, have probably shorted the stock too late in the downtrend. In bear markets, like the one we very well might be in, you need to short the low volume rallies immediately as they fail resistance. Look at my shorts tonight and look at the Nasdaq and NYSE. You will notice the majority of the shorts are failing RIGHT AT key resistance while the Nasdaq is also. The NYSE is rolling over below the 50 day moving average.

I will say it one more time: if you do not short here, do not short these stocks a few days from now if they are down over 5%. The ONLY right time to short is right after the low volume rally; never the breakdown. Aloha and I will see you in the chat room where I continue to have meltdowns but thankfully could possibly be over. My doctor has taken me off my Interferon injections. Thank God!!! ALOHA!!!!!!

new speculative (too thin) Featured long position: KTII

KTII is bouncing off support right near the 50 day moving average, on strong volume. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

new very speculative (multiple problems) Featured long position: DIT MFI

DIT is bouncing off recent support, putting in a very bullish intraday reversal closing at the HOD, on above average volume. Cut your first loss (50% or more) with a close below the 38.90 level and your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.

MFI is bouncing off support at the 50 and 200 day moving average and putting in a very bullish intraday reversal closing at its HOD, on very strong volume. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

new speculative long position: EPMD

EPMD is bouncing right off the 50 day moving average and putting in a very bullish intraday reversal, on very strong volume. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

new Featured long position: DAR

DAR is bouncing off the 50 day moving average and nearing a breakout to a new all-time high, on strong volume. The fundamentals are great, with EPS growing between 133% and 999% the past four quarters, sales growing between 45% and 83% the past five quarters, and earnings estimates for 07 and 08 for gains of 686% and 24% respectively. Fund ownership has grown from 28 to 44 the past three quarters, showing that the smart elephants are trampling their way into this stock. Everything is going the right way in this stock-up. Cut your loss with a close below the 9.76 level, if the stock does not move higher immediately.

new speculative Featured long positions: SWIM SHEN AGX

SWIM is breaking out of a deep cup with handle pattern, on very strong volume. The fundamentals are very good, with EPS growing 118% and 258% the past two quarters, sales growing 29% 79% and 111% the past three quarters, and earnings estimates for 08 for gains of 999%. However, fund growth has fallen from 33 to 31 the past two quarters, showing that some funds are finding something wrong with this holding. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

SHEN is bouncing off the 50 day moving average, on very strong volume. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

AGX is bouncing off recent support near the 50 day moving average and closing at its HOD, on strong volume. The fundamentals are getting much better, with EPS growing 104% to -.18 (n/a) to 500% the past three quarters and sales growing from 25% to 35% to 471% to 463% to 521% the past five quarters (from $9 million in sales to $53 million in five quarters). Cut your first loss with a close below the 11.55 level (50% or more) and your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.

new speculative long position: CSIQ

CSIQ is bouncing off recent support and nearing a breakout to a new all-time high, on very strong volume. The EPS is horrible but the sales growth has been between 99% and 447% the past seven quarters giving the stock a reason to rally besides the hype of the China, Canada, and solar momo play. Cut your first loss with a close below the 14.45 level and your final loss with a close below the 14 level, if the stock does not move higher immediately.

adding to existing speculative/former Featured long positions: CCC PSMT

CCC is breaking out over the 50 day moving average and nearing a breakout from this cup consolidation pattern, on below average volume. Cut your first loss with a close below the 13.33 level and your final loss with a close below the 12.11 level, if the stock does not move higher immediately.

PSMT is bouncing off the 50 day moving average and nearing a breakout to a new 52-week high, on strong volume. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

new Featured long positions: GLDN SRCL PEG ROS

GLDN is bouncing off recent support near the 50 dma and breaking out to new all-time closing highs, on very strong volume. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

SRCL is bouncing off the 50 dma and closing near its HOD, on strong volume. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

PEG is bouncing off the 50 dma, on very strong volume. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

ROS is breaking out of a cup base and through the 50 dma, on strong volume. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

new speculative Featured long position: PEGA

PEGA is bouncing off the 50 dma and nearing a breakout to a new 52-week high, on very strong volume. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

new speculative long positions: SIRT ANSR

SIRT is bouncing off the 50 dma and breaking out past the November resistance, on average daily volume. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

ANSR is bouncing off recent support, nearing a breakout to a new 52-week high, and putting in a very bullish intraday reversal, on strong volume. Cut your first loss with a close below the 4.09 level and your final loss with a close below the 3.98 level, if the stock does not move higher immediately.

adding to existing Featured/speculative Featured long positions: MA EGN ELMG TRUE BR

MA is breaking out of a base on base pattern, on strong volume. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

EGN is bouncing off the 50 dma and nearing a breakout to a new all-time high, on strong volume. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

ELMG is bouncing off support near the 50 dma, putting in a bullish intraday reversal, and closing near its HOD, on very strong volume. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

TRUE is bouncing off the 50 dma and breaking out to a near new 52-week high, on below average volume. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

BR is breaking out of this short flat base with a shakeout pattern, on above average volume. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

adding to existing speculative long position: II

II is bouncing off the 50 dma and putting in a bullish intraday reversal, on strong volume. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

EGN is bouncing right off the 50 day moving average, on strong volume. I really like this stock’s chart since 11/8 when the stock put in a very bullish “spinning top” candlestick pattern bullish session on huge volume with BOP going green. Since then the stock has pulled back very quietly to the 50 day moving average, with green BOP steadily growing to the potential max green BOP level, and the RS line has held up very well even making higher lows while the stock consolidated. The intraday support this stock has received, also, the past fifteen sessions has been very impressive in a market that has seen its high fair share of late-day reversals with some market sessions coming with the indexes closing near the LOD. Those slight bullish technical attributes is what will make the difference in this stock being a great long compared to a stock with weak closes that has a higher chance of failing. Obviously, if BOP was max green since the 11/8 move and the RS line was hitting new highs ahead of the price, I would be pounding the table on this one as it is a Utility stock which is a sector that does very well in weak markets. On top of the nice chart, the fundamentals are great, with EPS growing from 22% to 43% the past three quarters, sales growing between 1% and 45% the past eight quarters, an impressive ROE of 33%, a strong cash flow of $5.32 a share, 48% debt, an EPS growth rate of 31%, a timeliness rating of A, a sponsorship rating of C, a composite rating of 96, an Acc/Dis rating of B, an SMR rating of A, an EPS rating of 95, and YOY earnings estimates fro 2007 and 2008 for a gain of 32% and a loss of 3% respectively. Fund ownership has been growing the past three quarters from 145 to 150 to 155, showing increasing interest by the smart money. That can be directly contributed to the weakening market and rising EPS/sales. The stock also has a dividend yield of .7%, giving it just one more bonus to all the goodies it already has. If this stock fails, so be it, our cut loss is very close. However, I really like this stock in this horrible market and this will be my biggest long position since my failed venture into FNDT on 11/1. And that right there, my friends, should prove to you that the best traders wait for the right moments to go long. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

new speculative Featured long position: ELMG

ELMG is bouncing off support right near the 50 day moving average, on below average volume. This stock may not have any volume at this point in the bounce but with the stock closing right near its HOD it appears the momentum in this stock is going to take it higher tomorrow. By then we will probably see the volume come in. If not, as you will see, we have a very clear cut loss area. This chart has been very pretty since the May lows where the stock started an uptrend on strong volume with BOP going green. As the rally advanced, more and more accumulation entered the stock (you can see it increase on every price level higher) and BOP stayed in the green area most of the way higher. And when BOP did fall it only fell below the zero line a few times and never went red. With all the green BOP, heavy accumulation, excellent candlestick price action, low volume pullbacks, constant support at the 50 day moving average, and a strong RS line, it is impossible for me to pass up this stock when it is so close to the 50 day moving average. Not only is the chart very pretty but the fundamentals are quite strong, with EPS growing between 53% and 90% the past four quarters, sales growing between 10% and 23% the past seven quarters, a ROE of 6%, cash flow of $1.26 a share, 6% debt, an EPS growth rate of -3%, a sponsorship rating of B, a timeliness rating of A, a composite rating of 91, an Acc/Dis rating of B+, an SMR rating of D, an EPS rating of 76, and YOY earnings estimates for 2007 and 2008 for gains of 58% and 20% respectively. Fund ownership has fallen from 59 to 55 funds the past quarter, making me scratch my head wondering what they see that we don’t see. Since things are not perfect with this chart, there is no way I am going to make it a big position. However, I would hate myself if I passed up on this pretty chart and this stock ran to $50 in a few months without me. So I am definitely going to take at least 100 shares minimum. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

new speculative Featured long position: BITI

BITI is bouncing off recent support and the pivot point area of the November breakout from a very long saucer with handle pattern, on strong volume. The uptrend in 2006 was a near perfect rise and as the stock neared the end of the run the accumulation started to come in in very large amounts. After a very long basing period on low volume, except for the months of June and July, the stock started to rise again. That uptrend saw accumulation and green BOP come back into the stock as it made the right side of its base. It started to shape a handle at the beginning of November that had a very hard shakeout in the middle. After calming down again, the stock broke out on very strong volume and BOP went from green to max green. Today’s bounce off the pivot point area comes with BOP still max green which makes this chart very pretty. However, this market has been hell to longs and if this one fails I sure wouldn’t be shocked. Just make sure to keep it smaller. The fundamentals are very strong and estimates look even better, with EPS growing between 67% and 400% the past six quarters, sales growing between 14% and 47% the past eight quarters, a ROE of 6%, cash flow of $0.27 a share, 1% debt, a sponsorship rating of B, a timeliness rating of B, a composite rating of 94, an Acc/Dis rating of A-, an SMR rating of D, an EPS rating of 72, and YOY earnings estimates for 07 and 08 for gains of 113% and 53% respectively. Despite those amazing estimates and the recent strength in EPS and sales, fund ownership has actually fallen from 8 to 7 during the past three quarters. This might be a smart fund just getting out due to the market, but it still is not good to see so few of funds and a fund leaving a stock with such strong earnings and great estimates. Makes you wonder what keeps funds away from this one. I recommend to use limit orders on this stock, since it only averages 41,000 shares a day. Cut your first loss (50% or more) with a close below the 8.67 level and your final loss with a close below the 8.49 level, if the stock does not move higher immediately.

new speculative Featured long position: APEI

APEI is bouncing off recent support and breaking out past the most recent resistance on the fourth day of its trading history, on strong volume. There is not a lot of trading history here to make a for sure call on but the few days of trading we do have definitely have a bullish bent to them all. The first thing you will notice is that there are bullish closes on every single day of trading with either tails showing intraday support or the price opening at the LOD and closing higher. The BOP has also been around the zero line showing that there is no selling but at the same time showing that there is no real heavy buying yet either. Overall the candlestick chart pattern is what we are going on so far and so far it looks great. The fundamentals are what makes this stock great, with EPS growing between 63% and 300% the past three quarters, sales growing between 24% and 85% the past eight quarters, a ROE of 16%, 12% debt, a timeliness rating of C, a composite rating of 94, an SMR rating of A, an EPS rating of 98, and a group RS rating of 96. Management still owns 57% of the shares outstanding so it is quite obvious that they have a very heavy vested interest in this stock. This heavy ownership is a clear indication that the insiders want to be long their stock as they expect some big gains and want to reap the reward of their smart/hard work. Cut your loss with a close below the 32.61 level, if the stock does not move higher immediately.

adding to existing speculative Featured long position: TRUE

TRUE is breaking out of this recent tight-short-ascending base, on very strong volume. This stock at one point was way too thin and its price action suffered the consequence by being extremely volatile on an intraday basis. But I guess the eight mutual funds that are in this stock have decided to start accumulating more of it because starting around June this stock became even more volatile and active and is now starting to trade in a more normal fashion with identifiable candlestick price chart patterns. This stock is extremely pretty since the end of July when BOP went max green and stayed green to max green for two and a half month. After that period of nice BOP, it went yellow but stayed above the zero line showing that the stock had constant systematic buying underneath even when the accumulation stopped. Then in November BOP went max green which preceded a giant breakout on above average volume. Since the BOP went max green it has stayed that way and if this breakout follows through I would expect it will stay that way for a little while. The RS line is also leading this stock to new highs which is always a bullish technical development. The fundamentals are very strong, with EPS growing 29% and 42% the past two quarters, sales growing between from 6% to 130% the past eight quarters, a ROE of 7%, cash flow of $2.48 a share, 71% debt, an EPS growth rate of 21%, a timeliness rating of B, a composite rating of 94, an Acc/Dis rating of A+, an SMR rating of A, an EPS rating of 84, and a 2.4% dividend yield. Management still owns 18% of the shares outstanding and there are eight mutual funds that have ownership in this stock. So there is some smart money in this tiny stock that only averages 9.7k shares a day. New investors should stay away and experienced investors should use limit orders only. Cut your loss with a close below the 20.80 level, if the stock does not move higher immediately.

new speculative Featured long positions: FFH DAR OSIP

FFH is bouncing off recent support near the 50 day moving average and nearing a breakout to new all-time highs, on strong volume. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

DAR is bouncing off the 50 day moving average, on very strong volume. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

OSIP is breaking out of a year long double bottom with handle pattern, on strong volume. Cut your loss with a close below the 40.20 level, if the stock does not move higher immediately.

new speculative Featured long position: XNPT

XNPT is bouncing off the 50 day moving average and breaking out to new all-time highs, on strong volume. The RS line blasting off to higher all-time highs compared to the price today is the most impressive asset on this chart. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

new potential Featured long position: RBI

RBI is breaking out of a cup with handle pattern, on strong volume. This is a very nice chart with all the green BOP and decent accumulation on it but it is definitely too thin to be worth making a big long. I recommend using limit orders only on this stock as it only averages around 20,000 shares a day.

adding to existing potential Featured long positions: RICK NUVA

RICK is bouncing off recent support from this very tight consolidation at the pivot point area of the late October breakout, on below average volume. Despite the low volume on the move today, the breakout above the recent tight price area and close at its HOD, along with all the max green to green BOP, makes this chart look wonderful. This is a very pretty chart, and if it only did not lose its max green BOP that it had since early October, it would definitely be a long I would want to load up on. Unfortunately, there are too many non-perfect items on this chart to make it a very large position. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

NUVA is breaking out of a two-week tight pattern on an ascending base (base on base pattern) pattern, on above average volume. This is a very pretty chart with all the max green and green BOP all over the chart, the very strong accumulation since the August breakout, and the very strong RS line that is leading this stock higher ahead of the price. The RS line on this stock is by far the most impressive item on this chart. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

new speculative Featured long position: STRN

STRN is bouncing off recent support and the pivot point area of the October breakout, on above average volume. This stock has been in a steady uptrend for a while now but recently, in October, the stock has started to move on heavy accumulation with BOP going max green. With the amount of max green BOP and accumulation in the stock, along with the RS line already hitting new highs, there is a high chance this stock will not setup in a proper base. So it makes sense to poke some now, in case it runs away soon. The fundamentals are starting to pick back up again, with EPS growing 200% this quarter, sales growing 38% this quarter, a ROE of 28%, cash flow of $0.61 a share, 0% debt, an EPS growth rate of 90%, an earnings stability rating of 99, an SMR rating of B, an Acc/Dis rating of A, a composite rating of 93, a timeliness rating of B, and and EPS rating of 85. So there are some fundamental reasons to be long this low float stock. New investors/traders should probably avoid trading this security due to its very low average daily volume of 24,300. New investors should make sure you use limit orders. Cut your first loss with a close below the 11.13 level and your final loss with a close below the 10.25 level, if the stock does not move higher immediately.

adding to existing Featured long position: FNDT

FNDT is following through on yesterday’s bounce by putting in another bullish intraday reversal, closing near a new all-time high, on above average volume. The most recent uptrend start in July 2006 and has been steadily moving higher ever since. The stock has done a great job of finding support at the 50 and 200 day moving average along the way as it rose. The uptrends came on heavy accumulation and, as you can see on your charts, a lot of green to max green BOP. There were only two pullbacks that led to BOP going red, helping make this long term daily look very nice. The recent bounce off the 50 day moving average is more powerful than the previous ones as volume expanded to a level not seen in a full year as the stock put in a very bullish intraday reversal with BOP going max green. Today’s bullish reversal with BOP staying max green HOPEFULLY confirms that this stock is ready to move significantly higher. But, as we all know, anything can happen. That is why at the end of this analysis, we have a cut loss strategy. The fundamentals are strong, with EPS growing between 13% and 40% the past eight quarters, sales growing between 12% and 24% the past eight quarters, a ROE of 10%, a cash flow of $1.03 a share, 0% debt, an EPS growth rate of 55%, a sponsorship rating of A, a timeliness rating of B, a composite rating of 95, an Acc/Dis rating of A, an SMR rating of B, an EPS rating of 89, and YOY earnings estimates for 2007 and 2008 for gains of 23% and 20% respectively. Something I see, that I like, is that the company spends 19.5% of its sales on research. No wonder this is one of the top stocks in its industry group of Computer Software-Financial. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

adding to existing speculative long positions: ASTI SMBL

ASTI is breaking out of an ascending base on a big saucer base pattern (or a roundish double bottom), on strong volume. This has easily been one of my favorite stocks. I just wish it wouldn’t have failed the June 50 day moving average bounce. If August wouldn’t have happened I would have made some major coin. However, we had to follow our rules and cut our losses. since the early September bounce the stock has been holding up much better this time around. The green to max green all over this chart helps make is so much prettier than what the price and volume action already is. The price action is very tight when you look at a weekly chart and the accumulation is very clear on a weekly chart with little to no selling. The RS line is leading the way with price to new highs confirming the strength in this stock. I would be jumping up and down and loading up on this chart if it would have had max green BOP from mid September to now and would have been a bit closer to the 50 day moving average. However, the stock’s chart is still very pretty and that much green is very easy on the eyes. The problem we have with this stock is that besides it beautiful chart, we don’t have much but a pure solar momentum story. The fundamentals are very poor, with EPS bleeding red ink, sales growing 999% this quarter, a cash flow of $-0.78 a share, a timeliness rating of C, a composite rating of 78, an Acc/Dis of A, an SMR rating of D, an EPS rating of 14, and earnings estimates for losses of .65 and .40 the next two years. Management still owns 24% so there is some comfort in knowing that they have a decent vested interest in making sure that their stock goes higher. There are two funds in this stock, showing that their is some high quality institutional sponsorship interest in this stock’s story. Cut your loss with a close below the 16.10 level or the 50 day moving average, if the stock does not move higher immediately.

SMBL is bouncing off the 50 day moving average and putting in a bullish intraday reversal, on below average volume. Before this stock really started trading, this chart was pretty as it had green to max green BOP from June to July. However, it sure didn’t trade at all. But in early September the stock got a flurry of huge accumulation with BOP going max green and staying that way all the way till the end of October. Despite the BOP moving down from max green, it is still green and starting to trend up again. After the uptrend with strong accumulation, the stock has now started setting up in this nice cup shaped base on very low volume. The only time volume picks up is when accumulation enters the market. The big green bars and all the little red bars says it all, right now. It would be nice if there was more volume on this bounce and if BOP was still max green. It is possible volume will come in shortly and BOP will go max green in time but it would have been nice, obviously, to have had a near perfect chart. Besides this very green and pretty chart, we sure don’t have much else. The fundamentals are very poor, with EPS bleeding red ink, no sales growth to compare to, 0% debt, a sponsorship rating of B, a timeliness rating of C, a composite rating of 59, an Acc/Dis rating of A+, an SMR rating is not available, a ROE is not available, cash flow is not available, an EPS rating of 11, and YOY earnings estimates are for more losses. There is one brave fund in this stock in the most recent reporting quarter, along with management owning 20% of the shares outstanding. This is not a good long for new investors/traders to load up on. Keep it small. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.