Daily market Comments - October 31, 2007  7:05 PM

OK - we're now all set for the next great bull run for the stock market...

OK - we're now all set for the next great bull run for the stock market... The stage is now set for the stock market to make a handsome run here.

We are through with the dreaded (and sometimes very "spooky") month of October. Tomorrow kicks off the most bullish time period for the market historically - the November through May time frame. And - as expected - "Gentle" Ben Bernanke gave us a "treat" of a quarter percentage point interest rate cut today.

The market actually sold off on the news initially, having been bid up in anticipation of the cut. A "buy on the rumor, sell on the news" type thing. But the market immediately got traction, and headed skyward from there. The DJIA ended the day up 137.54 points - or exactly 1%, and the Nasdaq did even better - up 42.41 points, or 1.51%. Not too shabby for an "expected" event result!

Unlike yesterday, great charts were more plentiful today, including the one I've found for my Baffle / RSVP / ARM Play Members. This stock looks eerily similar to an early CSCO, when it blasted off in October 1990 for a 75,000% 10-year run. Will history repeat itself with this stock?

The market now seems a little nervous ahead of the Fed's comments tomorrow. Thanks a lot, Wall StreetJournal...

The market was choppy today, acting very nervous. And that last hour swoon is not giving me a "warm and fuzzy!"

What was the gnashing of teeth all about? Perhaps it was initiated by an article in today's Wall Street Journal that hinted an interest rate cut from the Fed may not be in the offing as a result of this month's meeting.

Would "Gentle Ben" Bernanke do that to us? What an evil "trick" that would be on Halloween day, since a quarter of a percentage point is totally built into the market right now. Not having that cut could easily "spook" the market into a freefall downslide of 100 points or more in the next few seconds following such an announcement.

Personally, I still believe that a quarter percentage interest rate cut is going to happen, if not a full half point. Now THAT action could have just the opposite effect - sending the market soaring upwards 200-300 points or more.

And the more I think about it, the more it seems that the Wall Street Journal article might have done us a favor today. After all, if it can create some fear and doubt that there may be no cut at all, then ANY cut could cause the market to soar.

So - in any event - thanks a lot, Wall Street Journal! We'll have to see where we are at 3:00 PM Central time tomorrow to see if I really meant that, or if I said that in total sarcasm.

Great charts were few and far between today, but I've found a dandy one for my Baffle / RSVP / ARM Play Members today. This stock recently ran almost non-stop from $7.50 to $11.50, took some time off, and may now be ready for another assault on the upside.

Daily market Comments - October 29, 2007  9:50 PM

Will the Fed give us a "trick" or a "treat" this week?

All eyes are on the Fed's governors' actions this week as they gather for their monthly meeting taking place over the next two days.

A quarter percentage interest rate cut is already factored in the market, and another half point cut is not out of the question. I recently read a study that states the interest rates need to be cut three quarters of a point from where they are now in order to avoid recession. So the half point percentage cut is not that low of a probability.

If we see a full half a percentage point cut, I would not be surprised to see a quick 300-400 point pop in the Dow, and the kickoff of the powerful November through May bull market. The timing would be perfect.

Bottom line, I would bet on a Fed "treat" and not a "trick" this Halloween.

Also, the "deja vu" continued today in the market with nice performances from late 1990's superstars BRCD and JNPR. PCLN wasn't too shabby either.

I've found a rather thinly traded stock that continues to report record sales and earnings after reporting its best sales quarter in eight years on the last report. It recently popped over 28% in one day, and formed a beauty of a cup and handle breakout today. It's undiscovered (for now) and way too cheap. I'm about to name that little stock for my Baffle / RSVP / ARM Play Members today.

Daily market Comments - October 28, 2007  10:42 AM

This market is giving me flashbacks to 1995...

Microsoft up over 10% on humongous volume? EMC Corp. galloping to highs not seen in years? If I didn't know any better, I'd swear we are back in 1995 when these old tech warhorses started taking off with a vengeance.

And there's another commonality of today's market with that of 1995, which may be much more important.

It was in 1995 that the Fed stopped hiking interest rates, and started lowering them instead. As we now know, that action kicked off one of the biggest bull markets in history, led by the exploding technology stocks.

Deja vu, anyone?

Will history repeat itself? Well, anything can happen. And when a software giant like Microsoft can blow away some of the top market analysts' earnings estimates, that is indeed a feat to pay rapt attention to.

Friday's market action was very bullish, and I'm seeing dozens of great charts again. Also, we now just have three more trading days in the fearful month of October. Thursday is November 1st, and the next leg of the bull market may just be under way already.

I've found an Amex stock that I think is about to go ballistic in this new bull market. It recently did just that, pulled back, and is now ready to blast off again. I'm about to name that little stock for my Baffle / RSVP / ARM Play Members today. It's got great fundamentals too!

Daily market Comments - October 25, 2007  5:57 PM

The market charts look like the path of a drunken sailor today! Welcome to the typical late October stock market...

Earnings season is always so much "fun."

Most traders will not hold stocks over earnings announcements. Sure, you can score home runs here and there - take a look at AAPL, ISRG and VMW lately. But one can get killed too. VDSI holders got a taste of that today, unfortunately.

These pleasant surprises mixed with landmines are just the typical things you see this time of the year in the stock market. The old adage "Sell in May and go away!" sure can work many times.

At least while the market charts are looking like drunken sailor paths (please - no offense to drunken sailors) we can comfort ourselves by knowing one thing.

October ends next Wednesday.

In this kind of market chop, it's doubly important to catch stocks just popping out of sound basing action. I've found a dandy one tonight for my Baffle / RSVP / ARM Play Members today. It's got great fundamentals too!

Daily market Comments - October 24, 2007  10:49 PM

I feel the bears are about to go into hibernation!

For awhile today, I was getting really, really nervous.

It seemed that my "New Leg of the Bull Market" scenario was going down in flames. The market cratered from the get-go, with the DJIA down a heart-stopping 200 points one time during the day.

But late in the morning, the markets stabilized, then proceeded to bounce a bit. But then it was back to the downside, with a retest of the morning's lows. But around 2:00 PM, it was off to the races as the bulls took over the controls once again.

Although the markets ended up in the red, it could have been a heck of a lot worse.

That's twice recently the bears have tried to wrestle with the bulls and take over the market controls, and twice they've been thwarted.

I feel the bears are getting tired, and are about to give up and go into a 6-month hibernation. Thus, I'm sticking with my Uber Bullish scenario for now.

Speaking of being bullish, I found a tiny stock about to charge back to the upside in a big way. It recently doubled in a matter of days, and it's getting revved up again after just a few days of rest. I'm going to give the name of that stock to my Baffle / RSVP / ARM Play Members today. I just love doubling my money in a few days!

Daily market Comments - October 23, 2007  10:53 PM

Well, it seems the bulls are back in charge!

It's amazing sometimes what a difference one or two days make.

Just last Friday, on the 20th anniversary of the 1987 Black Monday market crash, there was mass gnashing of teeth, and the eerie feeling of "deja vu all over again" with the freefalling stock market. That fear and loathing lasted all weekend.

And a big gasp could almost be heard on the opening bell Monday, with the horrendous dropdown from the get-go in the markets.

But then, almost as suddenly as the market took the swan dive, it started firming up once again. Candlestick signal patterns formed everywhere by the end of the day indicating a market bottom that, maybe weeks from now, will seem "obvious" - just like the most recent capitulation turnaround last August 16. That day proved to be the best buying opportunity since the last market swoon in February. I kept hammering that home to skeptical Members who do not have the full grasp and confidence in the use of Japanese Candlestick analysis.

And today, those bottoming patterns were confirmed, with the DJIA up over 109 points and the Nasdaq much better percentage-wise with a gain over 45 points. Both indexes gained momentum going into the last hour of trading - extremely bullish action.

Last Friday, I found maybe a dozen stock charts that I would even be interested in. Tonight, I'm seeing dozens and dozens of not only good charts, but FANTASTIC charts! In fact, I get the distinct feeling that we kicked off the next leg of the bull market today. There are just too many great charts for that not to be the case.

That would also fit with history, since we are now just one week away from the kickoff of the best time to be in the market - the November through May time frame.

We may be a week early this year.

So be ready to BUTT! That's an acronym we use often in our chat room, which means Back Up The Truck - and buy these great stocks breaking out all over the place.

Speaking of BUTT, I'm going back to high-momentum stock plays tonight since the bulls are back in charge. I've found a company with a funny name based in China that's already up 43% in October. The chart is a virtual 45 degree angle, which usually means much more upside to come, and just the beginning of a possible monster move. I'm going to give the name of that stock to my Baffle / RSVP / ARM Play Members today. We should definitely BUTT and buy this one!

Daily market Comments - October 22, 2007  11:22 PM

Are you having fun in this "Trick or Treat" market?

A huge sigh of relief could almost be heard at the closing bell today.

After a gap down open, the markets soon began to stabilize and head back up. All major indices ended in the green, with nice Hammers or Piercing Patterns formed on their charts. Strong bottoming action. Just what the doctor ordered!

The scenario ran almost exactly as I hoped it would. I had expected a harsher dropdown on the open, with the market recovering much later in the day, but I suppose today's action was the best the bears could do to try to stop this massive bull market.

Tons of Hammers and Piercing Patterns can also be seen in countless individual stock charts as well tonight. AAPL reported earnings after hours, and the stock is up huge. That should bode well for the Nasdaq and other tech stocks tomorrow.

So it looks like the market "tricked" us last Friday, making us worry all weekend, just to give us a "treat" today with an immediate rebound. Look for continued strength in the Nasdaq as tech stocks now take the lead in the next leg of the bull market.

Just to be safe, I'm going to play one more bombed out stock that's rebounding. I'm going to give the name of that stock to my Baffle / RSVP / ARM Play Members today. This well-known retailer is at a risk of going bankrupt, but with massive insider buying lately, the stock up almost 50% last Thursday and up another 14% today, it looks like someone on the inside knows something that everyone else doesn't. And holiday shopping is right around the corner!

Daily market Comments - October 21, 2007  12:37 PM

It's deja vu, all over again...

Well, I guess it just had to happen.

On the 20th anniversary of the Black Monday market crash of 1987, the market seemed to offer a scary "instant repeat" on Friday, with the DJIA cratering 367 points and the Nasdaq shedding a tad over 74 points.

So will we have Black Monday Redux next week? Well, there's always that possibility, but I don't think it happens this time. Worst case scenario, we may have a gap down open, and then a bounce.

For one thing, I think this time there are too many investors and traders who "expect" a crash. When you have thousands of market participants "expecting" something to happen, very often the exact opposite occurs.

And another thing - we just had a rash of bad earnings reported by Caterpillar and 3M - big components of the DJIA dragging down that index. Plus some warnings from financial companies that the subprime mortgage woes are still with us. Some of the other upcoming earnings reports don't look that bad though.

Also, another cut in the Fed funds rate when the Fed meets again on October 31 is now all but built into the market. That's not too far away.

Finally, I think we had to have a pullback in order to have a lower base in the market when the seasonally strongest time period to be in the market - the November - April span of time - kicks in, propelling the market much higher.

So that's my story, and I'm sticking to it. This pullback may give us the best time to enter stocks since last August 16.

But there still remains the possibility of Black Monday Redux. I have a feeling there are TONS of wary investors and traders out there who will be glad when Monday's closing bell rings - hopefully with profits intact!

When the market is killing stocks making new highs, I look for already bombed-out stocks hinting that they might start to pop back to the upside. I'm going to give one of those to my Baffle / RSVP / ARM Play Members today. This former $55 stock is now trading at 2 bucks and change, and popped 20% Friday on huge volume off a bottoming pattern called a BEaST, which often nails the bottom of the stock to the day. No promise that the stock is going back to $55, but $7.50 would be just fine.

Daily market Comments - October 18, 2007  7:14 PM

Well, they're trying to cool off the red-hot China market again, but don't count on it happening...

Every so often, the Chinese government issues public statements in the attempt to slow down the growth of their economy.

What a problem to have.

They tried that back in February, causing a mini-meltdown of most of the other stock markets in the world. But that action merely created a fantastic short-term buying opportunity.

And now they are trying it again, making statements to the effect that their own stock market is vastly "overvalued" and in need of cooling off.

And, again, I think it created a fantastic buying opportunity. But this time, that opportunity was offered in a much shorter time frame. Like a couple of hours this morning.

Yes, with the news that - once again - the Chinese government entered their "crying wolf" statements of their overheated market, China stocks opened weakly, but they immediately proceeded to march back to the upside. Well, maybe not IMMEDIATELY, but certainly in the first two hours of trading. We took advantage of yet another gift of the Chinese government, and bought some of the gapped down China stocks once we realized they were popping right back up.

So, once again, I'd like to offer thanks to the Chinese government for another great buying opportunity to get into their red-hot market.

Speaking of red-hot stocks, my latest ARM Play shot up 16.14% today, blasting out of a pullback base on huge volume. And I think it has at least that much more before it even thinks about the next pullback.

And tonight, I'm going back to China for my Baffle / RSVP / ARM Play Members, who are about to discover a stock that may be ready to repeat its action just a few days ago, when it powered up 64.47% in one day. The pullback seems to be complete with a certain candlestick pattern I'll name below - one that almost always indicates the bottom of a pullback.

Daily market Comments - October 17, 2007  10:25 PM

What the 1967 movie "The Graduate" has to do with today's stock market...

Some of you may remember that 60's movie.

There was a scene where someone told the young college graduate Benjamin, played by (a very young at the time) Dustin Hoffman, that there was just one word he needed to know to make his fortune. This one word was the "key to the kingdom" and was a slam-dunk to make millions.

With a self-assured, almost reverent air, the guy whispered that one word into Benjamin's ear...

"Plastics."

It was a classic scene from maybe a not-so-classic movie.

But I relive that scene in my mind from time to time, and adapt it for the current stock market environment. And I think there is just one word you need to know right now. That one word is the modern-day version of the "key to the kingdom" - and maybe even to millions, depending on how much you have to invest.

That one word for the modern-day version of The Graduate?

Here it is...

"China."

And I don't mean fine dinnerware, cupcake. I mean the country. And the increasingly larger number of "red-hot" (I just love that pun) China stocks that just keep firing off almost each and every day.

And boy, did they ever do that today!

It almost looks like gargantuan hedge funds are finally waking up to the fact that China stocks are exploding, and have been for quite some time. Dozens and dozens of nice breakouts in the China area hit my stock scans today. These are large cap companies that spiked up in double-digit percentage returns on humongous volume today. These types of breakouts are oftentimes the precursors to huge runs, or - in this case - continuations of huge runs for the stocks making them.

It was indeed another banner day for China stocks, which are now being compared with the tech stocks in the 1990's U.S. market. China remains one of the most bullish megatrends of this century, and I am heavily engaged - and obviously interested - in that market.

So I want you to lean over close to your PC monitor right now, and listen to me now, and thank me later.

Ready?

"China."

Speaking of bullish action, my Baffle / RSVP / ARM Play Members are about to discover a stock that may be ready to repeat its action back in mid-September, where it doubled in just seven days. It was up over 12% today in a reversal day of the market, and looks explosive. And, believe it or not, it's NOT a China stock!

Daily market Comments - October 16, 2007  8:37 PM

It was a fairly boring day in the market, unless you were in these stocks...

I was about to stop watching the market for awhile and leave for lunch today, and made the announcement in one of the stock chat rooms I dwell in most of the day.

"Don't worry", one of the other chat room dwellers replied, "The stock market is boring today anyway." And that was true, for the most part.

But later in the day, some of the Chinese Firecrackers started popping off again, and I was able to play a couple for some nice gains.

GBT for instance. The stock is the former ABAT that used to trade on the OTC:BB. It came back to life with a vengeance today after languishing a few days after its move to the Amex. The stock reversed strongly, and was up over 34% for the day.

Another beautiful candle was produced by YTEC, with a tidy 23% plus move, continuing an already strong uptrend, popping off its 10ema, and ending the day at its high. Very bullish action in an otherwise dull day.

Speaking of bullish action, my Baffle / RSVP / ARM Play Members are about to discover a stock bouncing back up after a mere one day of rest from popping 28.57% and 14.76%. It's up almost 9% today in a lousy market, and looks explosive.

Daily market Comments - October 15, 2007  10:37 PM

Weak market? What weak market?

The markets sagged almost from the opening bell today and closed very near the lows of the day. The DJIA fell over 108 points, or 0.77%, and the Nasdaq tanked over 25 points, or a little less than 1%.

Most pundits avered that the reasons for the large declines were a spike in the oil price to all-time highs, and renewed worries about the credit crunch due to a poor report from Citigroup.

But you wouldn't know it from some of the stocks I've recommended lately in various Trade Your Way To Wealth services.

Take the Gun To The Head Trader service for instance. One of my favorite holdings there for awhile has been BIIB - Biogen Idec Inc. I reco'd it on August 16, 2007 at $58.21. It closed today at $82.51, and was up almost 19% on buyout rumors. But the stock had been trending higher for some time. My happy GTTHT subscribers got a 42% gain in just two months on that one.

SQNM - Sequenom Inc. is another one we've been talking about quite a bit lately in the TYWTW Mastermind Group chat room. It got our interest back in late September with a Baffle-like blast to the $6 area. Today's price? $10.13, with a 14.46% pop to the upside today alone! This is how you can literally Trade Your Way To Wealth.

You always want to pay attention to the stocks simply ignoring a weak market and rocketing to the upside. After all, if this is what they are capable of in a rotten market, what will they be able to do in a STRONG market? Finding that out is oftentimes a very, very exciting event.

Speaking of which, my Baffle / RSVP / ARM Play Members are about to discover a stock up over 21% today in a lousy market, while resuming a strong trend to the upside.

Daily market Comments - October 14, 2007  9:33 PM

So what was last Thursday all about?

The markets came roaring back Friday after Thursday's sharp intraday reversal that wiped out great daily gains, and destroyed lots of beautiful charts - at least for one day.

Thursday's reversal points out the fact that there are indeed lots of overextended stocks in this market, and it's apparent that traders and investors are getting a tad nervous, looking for any sign or signs that the market might tilt back to the downside. After all, there are EXCELLENT profits to protect since the bottom of the market on August 16.

The major index charts show little damage, however. Mainly just small pullbacks to the 10emas - which is what we needed anyway. Best to get it over with in one day. The Nasdaq looks the most bullish, with an immediate Bullish Harami after the nasty Bearish Engulfing candle on Thursday. The DJIA simply shows a bullish candle after a Spinning Top.

Barron's has a story of the 20th anniversary of the Great Crash of 1987 as the lead on the cover of its latest issue. Bearish cover stories are usually bullish for the market, however. We may get a weak open on Monday due to that story, but I expect the market to bounce right back.

There is one thing to be aware of though.

October is known as one of the worst months for the stock market (I believe September is actually the worst overall, but it seems most stock market crashes happen in October). I think this year may be different, with the market bottom occuring a little early on August 16th - due to the subprime mortgage mess going on at the time.

The good news? The November through May time period is the most bullish time of all to be in the stock market, and we are a mere two weeks away from that scenario.

So if we avoid a crash for the rest of October, this bull market could be huge if we blast off from here!

Daily market Comments - October 10, 2007  7:15 PM

Darn! If only I bought this stock this morning, when it was up "only" 500%!

More fireworks were in the offing today in the market, but this time they did not come from a China Play.

Tiny POTP - Point Therapeutics Inc. - opened the day at 7 cents. It ended the day at 26 cents, up 550% for the day. But that was chump change. If you sold at the high of 45 cents, you would have scored around an 800% return for the day!

But it was back to China for the second-best performer of the day - SEED - with a tidy gain of 64.47% for the day on humongous volume. It's up big after hours as well.

Other big China movers were SDTH - up 25%, NINE - up 23.27%, CHNR - up 15.96%, CSUN - up 13.23%, and last night's ARM Play - ORS - up 12.75%.

And I have another China play tonight for my Baffle / RSVP / ARM Play premium service Members. It was up 23.44% for the day, is up huge after hours, and should provide another double digit percentage return for us tomorrow.

Daily market Comments - October 09, 2007  6:09 PM

No doubles today, but the Chinese Firecrackers exploded again...

Although we saw no major stocks doubling in price today, we did see some red-hot China stocks I call the "Chinese Firecrackers" fire off again.

In fact, looking at the top 20 stocks in the database I use, nine of the best daily performers were China-based companies. Most are familiar symbols to us by now: RCH - up 45.36%, KUN - up 33.16%, STV - up 29.35%, NINE - up 25.3%, UTSI - up 23.91%, CSUN - up 20.73%, LDK - up 19.44%, JRJC - up 14.81%, and QXM - up 14.08%.

And I have another China play tonight for my Baffle / RSVP / ARM Play premium service Members. It formed the Holy Grail setup today, almost a slam dunk trade. The stock recently rocketed from the $3.00 area to the $8.00 area in just three days! It has come back down to earth, but with the Holy Grail setup, it's poised to rocket to the upside once again.

Daily market Comments - October 08, 2007  5:58 PM

We're seeing stocks that double just about every day, like this one today...

You know you're in a bull market when - day after day - you witness at least one stock that doubles in price that day.

Today's rocket ship launch? Vonage Holdings Corp. (NYSE: Symbol VG). VG was up over 123% on news the company settled a patent suit with Sprint.

Those are fun, especially when you catch a big share of the move.

In other news, GOOG made history today (at least in the company's history) by popping above $600 for the first time. That helped the Nasdaq to a gain today while the rest of the markets took a breather. Like I said yesterday, I think the Nas will lead this new bull market with the strengthening of tech stocks.

No China plays tonight, but I'm going to give a stock that's up over 500% since 9/1/07 to my premium Baffle / RSVP / ARM Play Members below. It was up over 21% today, and may be ready for the next upward onslaught.

Daily market Comments - October 07, 2007  1:31 PM

The whole stock market is a cup and handle breakout!

Taking a look at the charts of the major market indices, I'm seeing beautiful cup and handle breakouts everywhere! We are now in a continuation of the uptrend that ended in July, with most index levels now higher than that previous yearly high. That is very bullish!

I've said several times (too many times according to some folks!) that the August 16 capitulation bottom and recovery the next day was the buying opportunity of the year. I hope you can now see that I was correct in that assessment.

I also predicted that the subprime mortgage "crisis" would soon become a distant memory, and a "blip" on the radar screen in the near future. We always seem to muddle through those "crises du jour" and just keep on keeping on. I think you can see that happening as well.

Anyway, back to the index charts.

The Nasdaq chart looks the strongest, and I'm expecting that Tech-laden exchange to take over leadership in this resumption of the bull market. Tech stocks do indeed look very strong. I'm sure RIMM helped out in that area with its tidy 12.76% blast to new all-time highs on Friday.

But I'm still the most excited - in fact, ECSTATIC - over the sizzling China plays we continue to find in this market. For instance, my most recent RSVP Play - FEED - was up 36.27% for the day last Friday, closing at $12.06. Think that was something? Its intraday high was $16.00! This is the kind of action we are continually seeing in the TYWTW Chat Room each and every day.

And one of the latest China company IPO's - China Digital TV (symbol STV) soared 75% on its debut. Be sure to read the front page article on the red-hot China IPO's in Monday's edition of Investor's Business Daily. The article can also be read at IBD's home site at www.investors.com. Highly interesting reading. And it sounds like we'll have many more opportunities to play these supernova China IPO's.

In fact, I'm going to give one of those recent scorching hot China IPO's as an ARM Play to my premium Baffle / RSVP / ARM Play Members below. It was up over 35% on Friday, but it looks like it wants much, much more.

Daily market Comments - October 04, 2007  6:20 PM

More Chinese Fireworks today, and some tremendous gains...

The "Chinese Firecrackers" were popping all over the place again today. In fact, just about any company with news even relating to China is escalating in price.

Take BHIP for example. Just the news that the China market is about to open up to the small company's products sent the share price in orbit today. The stock ended the day up a tidy 116.28% and was up a tad higher intraday.

Other China poppers held some familiar names and some not so familiar. Just like in recent trading, KUN was up yet another 42.78%, CHNR another 12.76%, and RCH another 14.67% (after being up MUCH higher intraday). But some new names joined the party today, such as GSI - up 61.81% on the second day of Amex trading, ORS - up 55.38% (I think traders suddenly realized it was a China-based company), and FFI - up 37.25%.

But with my new pick below that my Baffle / RSVP / ARM Play Premium Members receive, I've found a non-China company showing the first Aftershocks since the original back-to-back 40%+ Earthquake moves in early September. Looks like it's ready to rock and roll again.

Daily market Comments - October 03, 2007  10:24 PM

With the recent insane short-term returns we're getting from our "China Doll" stocks, I'm now on a mission...

One of my favorite things to do is to make insane amounts of money on stocks that no one else has even heard of. I'm kinda weird that way I guess.

For instance, how many people do you think have ever heard of China Natural Resources (up 74.61% yesterday and another 40.93% today - and much higher intraday)? Or China Architectural Engineering Inc. (up 72.29% yesterday and 53.06% today)? Or take China Shenghuo Pharmaceutical Holdings Inc. (up 33.93% yesterday and 57.82% today)?

You can get really, really spoiled on these kinds of back-to-back gains really, really fast. And I have.

So now I'm on a mission. A treasure hunt, if you will.

I'm using all my powers and resources to find more and more of these amazing Chinese Firecracker stocks. And in doing so, I've discovered something interesting.

These tiny, little-known companies are starting to move from the more obscure trading venues such as the OTC:BB and the China exchanges to the more popular U.S.- based stock exchanges such as the Nasdaq, Amex, and in some cases even the NYSE. When those moves take place, the stocks tend to explode almost immediately simply due to the gargantuan increased exposure to thousands of new investors and traders. That's what happened to RCH - China Architectural Engineering Inc. that I mentioned above.

And it's the same situation with my new pick below that my Baffle / RSVP / ARM Play Premium Members receive. I would vouchsafe that just a handful of people on the planet have heard of this company. But that may not be the case for long. No guarantee of a 120% return in two days, but hey - we're seeing it happen!

Daily market Comments - October 02, 2007  9:44 PM

The general market took a breather today, but China stocks took off like scalded dogs!

While the DJIA and Nasdaq took a day off today, China stocks went ballistic!

I saw they were strong earlier in the day, and didn't think that much of it. But in the last hour or so of trading, they just went berserk. CHNR was up an incredible 74.61%, RCH (my most recent Amazing Amex Mover recommendation) was up 72.29%, CTDC up 44.78%, KUN up 33.93%, WX up 20.55%, JRJC (my most recent reco here) up 16.68%, EFUT up 16.21%, CSUN up 16.08%, and another one up 15.75% that is my ARM Play in today's email.

These Chinese Firecrackers continue to remind me of the late 1990's in the U.S. market trading Internet stocks - except for one major difference...

These China-based stocks actually have sales and earnings!

And the one I'm going to tell you about below is extremely strong in that area, and I believe it just got discovered by tons of investors and traders today. I expect it to be one of the next "China Doll" home run stocks.

...and we're off! The fourth quarter looks great, and here's how you could have made 5 times your money today...

The market really surprised me today.

I thought with all the end-of-quarter "window dressing" last week, we might have a sell-off today, with some nice profit-taking early in the new quarter.

Didn't happen.

Instead, the DJIA politely marched up almost 192 points, or 1.38%, with the Nasdaq doing a tad better at almost 39.5 points and 1.46%. So we are off to the races in the fourth quarter of the year!

As far as big movers of the day, GRIN certainly made shareholders do so today with a tidy gain of almost 156%. Think that was good? It began the day at $2.00 and hit an intraday high of $10.00 - a possible one-day 5-bagger! How many of those do you need per year?

For my Baffle / RSVP / ARM Play Members, I'm about to name a stock below that skyrocketed over 400% in September. Think I'm insane? Well, this stock reminds me of my beloved TASR trade in 2003-2004, you know - the one that paid for my tropical island villa?