SP500 on sale again

Buy the S&P500 on yesterday's panic day. There should be some type of rally. But if not, then get out with a 2-3% stop. Can it really drop again, that quickly?

10069 high to 9737 current price on the Dow is a 332 point sell off and remember that the last down day for the general market was an up day for the Dow, due to IBM's strong earnings performace.

Short Gambling?

LVS, MGM, and WYNN have had impressive runs. This is a long shot but one of them may go broke, so why not way out of the money puts?

$5-10 bets may be a 10 bagger (1000% gains).

What to do

The market is up so should one worry about a correction? Yes. But one can reduce the worry by buying stocks that are undervalued. As Mr. Dines, the newsletter writer, often comments: "Drink upstream from the herd"

As to today, let the market settle. There should a clear trend late today or tomorrow.

Of course, by then I will be going down the aisle and definitely not have the financial market in mind the rest of the week.

What to do today

Nothing.

1) Earnings season with a lot of headline dissapointments
2) Options expiration

Enjoy the weekend!

What to do after making 100% profit

My friend emailed me that he patiently waited and made 100% on his Hecla position and now asked me what to do after taking half off the table. He explicitly mentioned that he wants to put it into other cheapo companies.

Since he has a precious metal mining company we need to diversify into other cheap stocks in other sectors.

Here are some suggestions:

Battery: CBAK or XIDE
Teleco: VG
Defense: TATTF
Private equity: ACAS
Transport: YRCW
Medical: CRY or CXM
Energy: DEJ
Retail: MFGD

Uranium Miners popped yesterday

LOOK AT :

CAMECO /DENISON /EQUINOX /CONTINENTAL PRECIOUS /LARAMIDE AND UEX

LOOK AT :

MEGA BELOW A $1 BUT UNDERSTAND THEY ISSUED MORE SHARES WHEN THEY FELT IT OPPORTUNE. MORE CASH EQUALS MORE PROFITS AND LESS PROFIT SHARING WITH FOREIGN COMPANIES

Vonage

vonage went from $0.50 to $2.00 very quickly and will most likely keep popping since they have a viable technology.

This is a penny stock that has a clear trend in site.

UP!

Money4Gold Holdings, Inc - - This is an IBD100 waiting to happen

Currently MFGD is a 23 cent stock that can easily surpass a dollar. Please go to their website for what they are all about http://www.mygoldenvelope.com/

Essentially, they buy scrap gold trhough advertising on television and the web. So what are the catalysts for a big upward move?

1) People formally value it at >$1
2) Insiders are buying
3) They are expanding and advertise in multiple languages
4) Easy to understand business
5) Big volume spike
6) This will be the ultimate stock as gold goes bonanza

Downside:
1) The insiders milk the company and the stock is basically a ponzi scam.
2) Advertising, which is done by an insider, expenses get out of hand
3) People sell their gold locally, not via web, but understand that QVC and Home Shopping Network made no sense at first either.
4) Can one justify a 30 million market cap going to $300 million?

LETS SEE!

As to Gold...

I would like to think that if gold is going to go higher it would be now.
Buy whatever you want and it should be higher in a very short while.

I really like CDE, HL, AUY. Miners.
And LAYN. Equipment provider. Appears to have a good balance sheet.

Penny Stock Analysis-NCEN/PSTI as examples

I didn't feel good with my short response yesterday since my readership is picking up again so want to mention a few things to my readers out there. First, please write and ask me anything that is on your mind. It helps me know what people want to read and if I'm presenting the information in a clear and meaningful way.

NCEN ,as mentioned, is a penny stock trading at 1.05 presently. It is not a trading stock and may linger for awhile, but it was a 5 stock at one time in a sector that is growing and has the huge financial support of Boone Pickens as well as the US government (that alone makes the sector investable). The clear technical is that volume increases on up days and higher lows - it is not too complicated just patience is required.

To add additional support to that simple method, please look at Pluristem (PSTI) it ran and lingered but then CRASHED, but why? The stock was bullish but then the issuance of new shares drove it down. So in my mind the technical bullish case led to $3 million more in the bank and additional time for PSTI to show its stem cell research as viable.

As an investor, you are looking for clues that may help in tilting the odds in one's favor. I believe that and experience brought me to writing and getting feedback on NCEN. On a down note, BYOC showed that a bounce couldn't happen due to the heavy sell volume. So it is a simple, viable strategy with numerous caveats concerning penny stocks.

NCEN-what's the technical basis?

Someone, Mr. Anonymous, asked what's the technical basis for this penny stock. I would say that penny stocks have been moving up and the price action is making higher lows and volume is trading above the 20 day average.

In sum, lets see!

Nacel Energy Corporation

This utility has a 24 million market cap and is involved in wind power. On a technical basis, wildly bullish and can shoot up from here.

Ultimately can drop 50% to cash in the bank. But the upside is that they got permitted and now may be able to make some revenue and hopefully for the shareholder profits and perpetual dividends!

http://www.nacelenergy.com/