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TheTechnicalTrader.net

WWAT.OB back in play breakout to new highs

Whats happened since i last sold:

announced Q1 07′ results which were significantly lower then there last 4 quarters. Which happend because

WWAT is stil expecting revenue guidance of 30-35million for fy 2007

WWAT.OB recieved there largest order to dat of $16m at the Fresno Yosemite International Airport. They expect to realize these revenues in the second 1/2 of 07′.

WorldWater & Solar Technologies Corp. and Solargenix Energy, LLC Sign Strategic Memorandum of Understanding on Sales and Marketing Efforts

Signing letter of intent for acquisition of ENTECH:

WWAT invited by the Big Man Arnold Schawzenegger:

I’m hesitant to buy strait into the breakout but i think this momentum, volume, and recent PR’s will lead us to higher prices, also don’t forget WWAT is about to close at its all time high . So i bought 1/2 position for now and will look to buy 1/2 on a dip if i get the chance.

-fous

CHCG had some rough behavior after its EC and 07′ guidance were released on may 14th and 16th respectively. I still like the companies huge growth potential here and it looks like its a great time to pick up some cheaper shares as price made a great looking hammer candle at double support(horizontal and ascending) within the ascending channel. Fundamentals here still look great and so does future outlook with a very attractive low forward P/E of 7.36, clean balance sheet, strong growth moving forward, and is expected to be listed on a major exchange towards the end of this year. I’m still a believer here and this chart looks like its ready for another go, lets keep our stops tight though near this support level

Buying CHCG tomorrow.

See full analysis on all stocks in our portfolio at: TheTechnicalTrader.net

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GOVX - as noted on the penny stock picking board

Regards,
Cameron Fous

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My filter for OTCBB stocks is not working for some reason saying the data is “temporarily unavailable” ……………………. So unless the data is back in the next hour or 2 before i hit the hay its just gonna be the major exchange bull list for tonight……. My apologies

-fous

thetechnicaltrader.net

We have been waiting for this cut of the sword all week and today it played right into our hands for those of you who chose to participate in all or part.

We recommended taking profits off the table in RVBD (May 22nd) and switching exposure with a Buy in the RVBD June 40 Puts for 2.15 which are currently trading at 3.40.

We are keeping our Long Calls in the VIX June 13 Calls with the macro view that even if we hold up a bit in the days ahead volatility will definitely pick up as uncertainty pulses through the market.

Bought 80 QID shares this morning at 47.10 and letting them ride.

Nothing done on our limit in USO at 48.50 as we missed the low print of the day by 0.09 cents. I will have to look at the charts for the next entry point as we are Long the Future CLA at 64.50 and I’m not big on chasing this thing.

Sold to close 2 SPX June 1500 Puts at 14.50 today which was the closing of the long Put purchase of May 22nd at 7.50 - thank you Pit traders. Keeping the remaining 1 lot open.

In the current state of unlimited market liquidity and Private Equity funds which have tricked public companies that re-financial engineering is more viable than re-mortgaging your house, but nonetheless the PE guys have their pitch straight. Could you image a Fortune 500 CEO turning this down “more time for the topline, less travel, no quarterly share holder meetings, guidance reports, and the total abolishment of defending shareholder value even if your topline revenue has grown but your stock has fallen out of favour with the street…”

No wonder the PE guys are cleaning up as I can picture a more favourable objective for today’s executive decision makers.

With this said, the question(s) lies with where is this mountain of liquidity and market break-out taking us…If you look at the macro side it doesn’t paint the prettiest of pictures as Crude has a good chance of breaking through the USD 67.00 level for which the black gold has been capitulating between USD 61- 66.50 since late March ‘07. Gold has tanked, but so has the dollar at least in EUR terms, but to our bewilderment is continuing to climb in relation to the JPY. All while interest rates are slowly creeping up in the treasury market and even the Fed Funds Futures have priced in a nice chance of a 25 basis point hike between now and summer. So why is the market continuing to mark new highs in China, Germany, and the US with every new moon…

Lets just put it this way, when I see Chinese students in NYU post-grad programs opening up trading accounts in China through their parents it just seems that maybe we have approached that level that every contrarian lives for. And when you bring this euphoria back to U.S. soil and see the DJX hitting new highs for the 7th consecutive week and an RSI well over 70, you begin to wonder if you are clever enough to go against the masses, and if so how much heat are you willing to take on the trade…

As you have seen I have started to get my feet wet within the options market as it is the cheapest and most transparent way to gain short market exposure. Therefore, the trades I like for the next few weeks are:

USO (Crude ETF) - Buying dips at 48.50 and currently long the NYMEX Crude Future at 64.50.

JPY at 123.10 is a buy (or 81.25 in the JPY June Future) and if you look at the US Dolloar Index Future you can see the dollar will make one last push up before failing apart and most likely the push up will come with the inflation risks which will hit the market in the weeks’ numbers ahead until Memorial Day.

SPX has room until 1550 but we are not waiting that long and looking to fade the market on relatively healthy pushes. SPX June 1500 Puts we picked up 2 more lots at 7.50 on May 22nd.

Buying the VIX June Future at any level below 13.00 and own the June 14 Calls which are simply not moving as the tug-a-war between new liquidity and capital preservation continues.

Looking for retailers to fall apart over the next year and the RTH chart is still the best way to place a handle on the entire sector. Although there are some great retailers doing well, such as Nordstroms and JC Penny’s, we Bought June Puts on WMT on May 10th and have closed 10 lots (half of the position) on May 22nd as reported.

Technology. The Contrarian side got the best of me yesterday and as we have had an absolute heyday with RVBD since early last year yesterday we closed the entire position at 39.20 and actually went against the momentum by Buying the June 40 Puts at 2.15 when the stock was at 39.30 on May 22nd as reported.

My two cents,
James

What’s the difference between S&P-500 options and OEX (S&P-100) options…

Well, the OEX options are playing a more important role for the big/smart money due to the huge amount of automated hedging strategies going on out there with the large index and hedgies, which I assume is the reason why the OEX put/call volume ratio is behaving contrary to the S&P options as well as to equity options. Currently I have the OEX put/call ratio heading (yet again) above its critical 1.5 level. Admittedly, last September and this past April the indicator failed, as despite extreme readings the market came down only 2 - 3 sessions. Nonetheless, mega spikes in the OEX options are, and should, be of concern as well as being potentially toppish.

What is also important to see is that within the S&P-500 options put/call ratio we have the same kind of mega spike on the downside (readings below 0.8 ) Generally, the put/call ratio on S&P-500 options usually doesn’t highlight a very reliable market indication as most investors prefer playing the market via the future. The behavior of the S&P-500 options put/call ratio seem to be more random than the OEX ratio. However, mega spikes into lower extremes are nonetheless not too bad in signaling important short-term turning points or at least a market that takes a short-term breather.

Combined with the still intact major divergence in the VIX index, which in the past was always a trigger for somewhat stronger set backs, together with our cyclical
projection in which we still expect a 13-week cycle low to take place in late May/early June, we continue to see the market trading near an important trading top hence our tiptoe into the Long SPX puts, the VIX 14 Calls, and QID buying to start on Thursday (May 24th).

James Patterson
http://www.thetechnicaltrader.net

GNLM:
Before entering a position i either buy on a breakout or buy on support. Sometimes i’ll fill on both. Buying the breakout in hopes of a continuation. Or buying near support. As of right now GNLM is consolidating on low volume so its hard to say which way its going. I’d say possibly pick up some shares around support of the ascending trendline if you can. Or wait for volume confirmation when we know bulls are back in our favor.

suggested stop near .36 or so.

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MAD CATZ INTERACTIVE INC COM Company Overview

http://www.thetechnicaltrader.net

Mad Catz Interactive, Inc. (Mad Catz) designs, manufactures, markets and distributes accessories for all video game platforms, including the Microsoft Xbox and Xbox 360; Nintendo GameCube, Game Boy Advance, Game Boy Advance SP, DS, N64 and Micro, and Sony PlayStation, PlayStation 2 and PSP. The Company also designs, manufactures, markets and distributes accessories for the Apple iPod. Mad Catz’s products include video game accessories of all types, such as control pads, steering wheels, joysticks, memory cards, video cables, light guns, dance pads, microphones, car adapters and carry cases. The Company also markets game enhancement software, distributes video game software and publishes video game titles. During the fiscal year ended March 31, 2006, approximately 72% of its gross sales were generated in the United States, 9% in Canada, 19% in Europe, and less than 1% in other countries, including Australia, Japan, Korea, New Zealand and Singapore.

I’ll tell you whats gonna happen here. Price is gonna retrace tomorrow near the midpoint and im going to buy some shares, maybe you will too? Then price will continue to rally in an unknown amount of time and we’re gonna pull out 25-30% + on this trade. Right? lol who knows, thats my best guess

MCZ has been doing a great job in cleaning up there act after having a very rough fiscal year in 2006 posting a large loss compared with there other years in business. Which resulted in price action dropping to a low of just 30 cents in early 2006. Price has since been in a strong uptrend ever since breaking out to a new 52wk high today of 1.28.

MCZ got rid of most of there low margin product inventories and are now focusing on there high margin gaming accessories. Being that all the new gaming systems have been released not too long ago MCZ revenues have been growing significantly increasing there margins and putting them back into profitability. MCZ’s price to sales ratio is very low at just .55 and soon i believe will have a positive P/E ratio once Q4 is announced.

Another speculative thing that was recently announced from MCZ is there licensing deal with MSFT for HALO 3 products. HALO is the most popular game series for any console out there. I myself “used” to play it for hours and hours with my friends. I’m sure me and my buddies will be putting in a few solid hours H3 when it comes out. I remember when Halo 2 was released here in on campus a few years ago, they opened the doors to game crazy at midnight for sale of Halo 2. Me and my buddy showed up around 1am to go get a copy, lol…………….. there was like 500 people there! haha it was insane. Anyways we waited in line for 2 hours and still was only around 1/2 way to getting to even buy a copy so we bailed out. Anywho, my point being is that this is the game of all console games and im sure these accessories will be a huge hit for all those nerds are out there that are willing to buy halo accessories to pimp out there xbox 360 gear. And yes there are a lot of those gamers out there. The gaming industry has since grown larger than the music industry to my surprise. To get an idea of how popular Halo 2 was, 2.4 million copies were sold in the first 24 hours earning $125m thus out-grossing the highest grossing release in entertainment history of all time, which was Pirates of the Caribbean. So be that as it may, Halo 2 was the biggest event in the entertainment industry ever Halo 2 was the most popular game played on XBOX live with over 1/2 billion games played until in 2006(2 years after h2 release) . Gears of War took over the top spot, which might i add MCZ has licensing deals with also for accessories.

additional license deals:
Business Wire (Tue, Mar 6)
Mad Catz Unveils New Line of Wireless and Wired GamePads(TM) for Playstation(R) 3

Mad Catz to Offer New Licensed Accessories to Accompany Launch of BioWare’s(R) Mass Effect(TM)
Business Wire (Wed, Mar 21)

Mad Catz Renews NBA License to Produce New Line of Controllers and Related Accessories
Business Wire (Tue, Apr 10)

Mad Catz Expands NFL Controller and Related Accessories License to Include New Regions
Business Wire (Wed, May 16)

In addition to the new licensing deals, Halo 3 deal, and improving fundamentals. MCZ’s chart looks extremely bullish breaking out of $1/share which was a prior resistance mark. This is the kind of set up that momentum could price price to $2/share in a short amount of time. Similar to my other plays like PUDC, RPTN, PCSV, and ABAT. Price broke out from its prior peak of $1 as well as breaking out of the ascending wedge pattern on heavy volume giving MCZ a lot of momentum in this trend. My plan is to nab some shares hopefully near the midpoint of todays candle. lets see how it goes

-fous

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About China Direct, Inc.

China Direct, Inc. (OTC Bulletin Board: CHND - News) maintains active, majority stakes in a diversified portfolio of Chinese companies as well as offering consulting services for both private and publicly traded Chinese entities. China Direct provides a platform to develop and nurture these entities as they expand their businesses globally. As your direct link to China, our Company serves as a vehicle to allow investors to directly participate in the rapid growth of Chinese economy in a diversified and balanced way. For more information about China Direct, please visit http://www.cdii.net.

CHND is relatively new to the OTCBB market debuting in november 2006 trading on relatively low volume. Today CHND released there Q1 earnings report with some impressive #’s after they have made some promising aquisitions they made in October 2006. Revenues increased from $206k in Q1 06′ to $30m this quarter “The increase in revenues was mainly attributable to the three companies acquired in China since October 2006, Chang Magnesium, Lang Chemical and CDI Wanda Alternative Energy, as well as a strong performance from its consulting division,” said CHND.OB in their conference call. Income increased to $1.8m and .14 eps compared to $156k in Q1 06′ . Now this growth is quite extensive but take into consideration that this quarter had their 3 new acquisitions included and didn’t previously. Though looking at Q4 06’s results there is large sequential growth here as well with $13m in revenues and $156k net income compared to the $30m and $1.8m Q1 07′.

Looking forward CHND gave 2007 full year guidance of $12