Written by Ryan Mallory | 03 September 2010

Current Long Positions (stop-losses in parentheses): TICC (8.51)

Current Short Positions (stop-losses in parentheses): DGX (45.95), FCN (35.01), OMI (27.76), ADBE (29.78), HK (16.56), CERN (79.28)

BIAS: 33% Short

Economic Reports Due Out (Times are EST): Employment Situation (8:30am), ISM Non-Manufacturing Index (10am)

My Observations and What to Expect:

• Futures are slightly positive
• 1080 will act as support for the bulls, with resistance at 1100 (a break would represent a higher-high) and at 1107, the latter of which represents the upper line of the major downward channel. If we break through this, it could allow for the markets to breakout even higher.
• 1130 is max pain for the bears.
• Very interesting inverse head and shoulders pattern forming on the weekly charts. Will post about this later today.
• GDP will dictate market action today. Be ready for a huge price swing in either direction.

Actions I Will Be Taking:

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Written by Ryan Mallory | 02 September 2010

Unlike any of my other screens, this screen focuses on stocks trading under $10/share, and has a market cap under $1 billion, too. As for the variables that I used in the screen, I focused on fundamentals, particularly companies that have a healthy balance sheet with little debt to speak of, with a strong prospect for rapid sales and growth in earnings, as well. Those in yellow are carry-overs from the last time I ran this screen and as you can see they are all yellow this time around, meaning no new additions to the screen.

Now be aware, that these kinds of stocks carry huge risks to them. A simple downgrade, news event, or missed earnings target, can derail these small-cap stocks in a heart beat. But if you have some capital that you want to roll the dice with, these stocks will give you a good start in your research.

Here Are My $10 Lottery Specials.

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Written by Ryan Mallory | 02 September 2010

The jobless claims report was nothing more than a snoozer - there was very little price move, if any - mainly because it was in-line with expectations. The big one is tomorrow, of course, when Employment comes out. I would expect a major move in one direction or the other, as a result.

LONG: Textainer Group (TGH)

SHORT: FLIR Systems (FLIR)

Written by Ryan Mallory | 02 September 2010

Written by Ryan Mallory | 02 September 2010

Current Long Positions (stop-losses in parentheses): TICC (8.51)

Current Short Positions (stop-losses in parentheses): SPY (108.68), DGX (45.95), FCN (35.01), OMI (27.76), ADBE (29.78), DDS (22.16), BIDU (83.39), HK (16.56), CERN (79.28)

BIAS: 61% Short

Economic Reports Due Out (Times are EST): Monster Employment Index (6am), Jobless Claims (8:30am), Productivity and Costs (8:30am), Bernanke Speaks (9am), Factory Order (10am), Pending Home Sales (10am), EIA Natural Gas Report (10:30am)

My Observations and What to Expect:

• Futures are break-even.
• Unbelievable how bullish everyone has become in 1 day. CNBC, Bloomberg, blogs and talking heads are all believers in the market suddenly.
• One day doesn't change anything. Wait for the charts to confirm new behaviors in the market.
• Any move up today, will result in a break of the 20 and 50 day moving averages.
• Jobless claims is all the rage today.
• Volume wasn't overwhelmingly strong yesterday, and don't expect it to be for the rest of this week with Labor Day Weekend on the horizon.
• 1100 is key level for bulls to break and bears to hold.
• 1040 is still the only level to the downside that the bulls and bears care about.

Actions I Will Be Taking:

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