The Market, WX CYNO and BLOG 093007

I was able to end last week selling the gold and oil stocks into the gap higher Friday morning. MDG and AEMLW faired best. The OIH stalled at 196.49. The recent high in the ETF was 196.56. The recent high was not taken out, but I felt safer selling individual stocks, since that high could be resistance. Luck prevailed.

September ended the month with plenty of window dressing. History shows September as usually a weak performer. Is the market saving that for October? I decided to short a few IPOs into this new month, and also took a little QID long at 38.75.

WX – Wuxi Pharmatech Inc. gave me an entry on the 15-minute chart after breaking below trendline support on the daily chart.

V bottoms don’t usually hold. The 20 and 50 day moving averages were moving down. The pivot low of the V bottom was followed by a fibonacci 8 candlesticks higher. Odds favored lower.

CYNO – Cynosure, Inc. was another recent IPO that went red Friday. Trading the 5-minute chart allowed a daytrade short there.

BLOG – BladeLogic, Inc. also traded red, and stopped it’s uptrend, trading a lower low. That’s some decent volume on that spill.

I’m biased on the short side of those IPOs for a trade now. I will not buy them on the long side until trading patterns on the daily charts emerge. I don’t average in.