Month: June 2004

On Vision

The mind is the limit. As long as the mind can envision something, you can do it.
-Lots of people understand this key to life. In this instance, it was Arnold Schwarzenegger

Signs of Life

Just have a minute tonight, but I wanted to post the chart for a few reasons: the test a couple of weeks ago, the retest the past two days, and the first decent white candle and volume pickup since falling into this low volume pullback, going into the Fed meeting and the Iraqi gov’t handover.

4-Wheeln’ Micro-cap

When I say micro-cap, I mean it with Cycle Country Accessories Corp. (Amex: ATC). With a 2.7 million share float and a $21 million market capitalization, you can’t find too many smaller, profitable, growing companies trading in the public markets. But ATC is an industry leader in the in accessories for all terrain vehicles (ATVs) in the U.S., Canada, Mexico, South America, Europe and the Pacific. Might sound like a boring business, but according to today’s press release, revenues increased 43.5% and net income 450% during the first eight months of fiscal 2004 vs. the same period last year. They must be doing something right. Maybe all those newly hired workers we keep hearing about are spending their money on ATC’s snowplow blades, lawnmowers, spreaders, sprayers, winch mounts, utility boxes, baskets and all the other must-have ATV accessories. Regardless, an unknown stock that came public in the past few years and is showing accelerating revenue and earnings growth is worth a look in my book!

Yellow Brick Road (short-term trade)

Entered a small long trade in Gold Fields, which may be ready for a bounce. Probably should have waited for a reversal candle and/or a stochastics crossover (see circled area on chart), so the timing on the entry could have been better. Separately, here are some stocks I am looking at, INTX and SIRF, two recent IPOs. More research required. Both companies have serious competitive threats from larger players.

2nd Day of Light Distribution

Negative: Second day of distribution on Tuesday (see circled areas on chart).
Possible Positive: Distribution was on below average volume. Also, we’re re-testing the 50-day moving average (see boxed areas on chart). Last time the test resulted in a rally.
Of Note: With this week being an options expiration week, we could see some excess volatility. And with the June 30th Iraqi gov’t “handover” just around the corner, there could be some increased [terrorist] risk premium in the market now and/or more could get built in over the next couple of weeks. If the fears do not develop into reality, then the risk premium may lift (i.e., market may rally). The question is, from where does it start, higher or lower!

Missing Man Video Clip

I shot this from the convergence of Constitution and Pennsylvania Avenues, which was where the twenty-one F-15 jets flew over. It was timed to when Reagan’s casket passed from Constitution Avenue onto Pennsylvania Avenue, for the final leg to the Capitol. Turn up the volume on your speakers to full to get an idea of how loud it was. And imagine the deafening roar of the missing man’s jet slowly fading into nothingness as his plane vanishes into space… Very impressive and moving. Download missing_man.avi