WEDNESDAY MAY 28 THOUGHTS

I've quickly learned in the early goings of this piece that many people are actually frightened/scared to trade most of the ideas I present in this space. I have never advocated buying or selling in anything in this space, but two thoughts keep ringing around in my mind:

First, what I/we have tried to create here is a bit of a planbook for the day with a particular focus on the early going. To me, it makes a lot of sense that if, say, a Lehman Brothers (LEH) falls from 45 to 35 in 10 days on liquidity rumors, the stock gets beaten down in the early going, the market the nrallies, and LEH goes through unchanged, it is going to rally further. People/investors/institutions who are short the stock will not understand why it is down and many will rush for cover. The trick, here, is not to ask "why" this happens ,but to understand that it does happen and to react to it from there. Our job as traders is to make sense of the action in a practical rather than a theoretical sense. Ergo, when this situation presents itself, do not be afraid in trying to figure out why Lehman is rallying...just accept that it does and buy it. In summary, it helps to be thinking to trade mainly from the long side if this is what the factors would indicate rather than haphazrdly shorting andf buying different stocks. Second, what most traders never comprehend is that most of the plays that are found in this blog are 'safer' and have a 'higher likelihood' of working out than the plays many traders attempt (i.e. scalping). To me, a play like LEH is much much safer than trying to buy a significant swath of a stock like CSCO or MSFT in the hopes of making a few cents. If there is a reason to do something, do it. But, again, my point here is that instead of worrying about losing, mkae sure you know where you are wrong but focus on winning. Realize that if LEH didn't quite get through unchanged after trading lower all day long on the news/rumors it endured, you can sell it for a 5 cent loss. But if you are right, you can make a dollar a share in 10 minutes. Do not be so afraid to lose that you cannot win.

Overnight, the European markets were up a bit while oil continued it's afternoon swoon as it is down over two dollars a barrel in the pre-open. The futures are trading higher. Overall, look for slow summer-like trading with a nice open and pockets of strength here and there...should oil accelerate its move one way or naother, the market will act accordingly, but likely on light volume.

SNDA- terrible earnings...looking for the thing to continue to downtrend lower. Would like to short at 33.85ish (which it may be well below by the time this is published).

WX- good earnings. Should hold, but looking to short thru unchanged.

UCBI- broke down terribly yesterday. Looking for more follow through today and specifically, would like to short thru yesterday's low.

JRJC- was very strong yesterday. Looking to short thru unchanged if the market weakens.

KDN/SPW/CTCM- all Cramer stocks...KDN/SPW will track the market in particular.

MXC/PDO/FPP- small oil plays...if oil breaks badly, looking to short these all day long. If market rallies, I like MXC in particular as a buy thru unchanged.

CKXE- received a 12 dollar a share takeover bid. Stock barely moving. Do not know why. Looking to short thru unchanged.

Other entities of note- AEO/CBRL/DAKT/DLTR/RL all reported earnings before open; AINV and MW after-hours. YHOO 'amenible' to a deal. ADm convertible offering. MFA convertible offering.

Good luck to all.