WED. JUN. 11 THOUGHTS

There are always admonishments around to be careful while trading. Well, here is another: for momentum day traders, one of the worst stretches of time to trade is the period just after the open of the market on days in which the market closed the previous day in the middle of its range. Usually, big money tends to slosh in and out early and particularly late in the day with the market tending to close near the top or bottom of a range. However, the Dow yesterday closed 83 points off of a low and 8 off of a high while the NASDAQ closed 18 off of a high and 16 off of a low. This is important for any trader to notice. Why? It makes breakouts and breakdowns that much harder to be a factor in individual stocks. How can one buy a new intra-day high when really, it is a lot lower than yesterday’s high and there are a crop of sellers waiting above the market to exit. So, particularly on mornings such as this one: “Be careful.”

Overnight, markets quiet except for oil trading higher in pre-open sharly higher.

AAPL- trading on rumors of the health of Steve Jobs oddly enough...if it opens higher, may be a short thru unch

GLUU- strong yetserday; if it opens flat, buy 5.75.

CRDC- way up yesterday; if it opens way up and tirckles down, short thru unch. Conversely, could be A-B-A2 in that if it opens at say 10, goes to 9.80 and back to 10, it is a buy.

GLRE- looking for buy on continued momentum

APP- was weak all day yesterday; looking for short at 6.30 or lower

AGU- pre-announced positive earnings; whole sector should be strong today (like MON, IPI, POT, et al)

OXM- pre-announced negative earnings; if it opens lower and holds, may be buy thru new high

REXX/DCI- Cramer stocks

BWP- major share offering 25.30. Worth a shot as a buy above 25.30 with an outpoint anywhere below 25.30 post-entry

LEH- rumors that they are near a deal for more capital

Really tricky day ahead; be careful.

Good luck today.