True, mrmichael, 2ndaries are almost always bearish in the immediate-term. Sometimes, but
not always, that bearishness creates a decent entry point. And yes, financials still look
hot. i'm watching SLM for a volume expansion.

Strange having 2 stocks make 2ndary offerings within just 2 days. While EMS (which i don't
have yet) still gets the benefit of the doubt, i gave NANO absolutely no benefit of the
doubt. i sold that sucker at a slight loss before 10am, as soon i i saw that it was having
a 2ndary. Can't blame them for monetizing a 6:1 rally, but i wasn't gonna let it happen at
my expense. Looks like NANO might move similarly to NVAX, which is now only half as high
as it was the last time they had a 2ndary.

Got out of WCG after hours today, as it closed the regular session below its 5dma. Unlike
NANO, WCG was a profitable trade. And i will be watching the sector rotations. If they
re-rotate back into health stocks, i may get back into WCG.

Last edited on: 11-18-2009 10:15 pm

In regards to secondaries--

They've talked a lot about Bank of America having another. I think long term its the right
move but maybe doesn't get received so warmly short term.

Stocks as a whole -- still bullish. Like another 20 percent bullish. Real bullish on
financials right now.

Generally, a 2ndary is bearish for a stock's price---unless it's a *well-managed* 2ndary.
Since management at EMS is highly rated, they get "the benefit of the doubt" on their
11/17/09 2ndary. So, the resulting price drop may be a very bullish " 'm'on back". Just
maybe. My trigger finger's getting itchy.

Generally, a new high made on low volume (as was the case with SPY on 11/17/09) is
bearish---depending on the make-up of the aggregate volume. If the low volume came from
less *institutional* buying, that's bearish. But my hunch is that it came from less
*individual retail* buying. And that'd be bullish.

Last edited on: 11-18-2009 08:22 am

Alchemist,
I checked last night and NANO up another $1.24. Three strong days - amazing. Hope you got
in.
I'm wondering if Bellichick threw the game. lol.

Thanks, Valerie, but i like the NANO call even better. Had no $ on the Bengals call.
Still in WCG, even though it came very close to tagging its 5dma. My stop is reset daily,
based on the *previous day's close*. So touching the stop intraday does not trigger the
sell order.

Last edited on: 11-17-2009 06:57 am

Alchemist,
Nice call on the Bengals' win.

Trading Nymph,
That makes at least 2 CEOs you've met: Bill Sanger, and 2 years ago, the CEO of TSCM. Any
others you've met?
Smart managers are of course a big part of any company's success, and that's one reason
why IBD likes EMS. I believe they're also on Zack's Top 100 list. It's one to watch.

Valerie,
If you look a few pages back on this forum, you'll see that i predicted the Bengals to
beat Pitt the last time they met. Everybody laughed at me then. Maybe less people will
laugh this time as i predict the Bengals to win again.
Mr. Fry is right. The SnP is precarious here, stuck in a range since October, resisting
that do-or-die 1125 level. Could go either way of course. Meantime, i'm keeping dry powder
available. But if we close above 1125, i will go all-in.

http://seekingalpha.com/author/david-fry/articles

Good morning Alchemist:
I certainly know what you are doing today - big game between Cincinnati and Pittsburgh
looming, eh?
Anyway, it appears the market's upward movement has even David Fry vexed although he does
point out some potential cracks in the rally.
I believe the Steelers should have homefield advantage here.

Alch, I got to meet EMS ceo in Jan...I really liked him, he knows his stuff.

WCG just keeps on ticking...1.5 above its 5dma stop. That win helps make up for missing
the last 2 days of rally in EMS, which is nearly back to where i sold it.

The latest analyst to upgrade EMS was probably spot on, because:

EMS getting into the anesthesia business makes very good sense. Anesthesia fits well into
the emergency services space. And most anesthesia work is done in the surgical
department---which is for most hospitals, one of the few profitable departments.
"Labor" costs aren't as high as you might first think, since only one actual
anesthesioligist is needed to oversee an entire staff of relatively low-paid CRNAs and
AAs.

So, when i get stopped out of WCG, i will consider moving the proceeds back into EMS, with
a less short-term timeframe.

Last edited on: 11-12-2009 02:21 am