Not difficult to understand.

Fellow ITM readers, this is not brain surgery here. Either have proper stops or hedges in this market or stay in cash. We don't like to continue to describe the market as "ugly" but things keep getting worse! We got stopped out of two positions yesterday and are close on several others today.

You would think when Crude Oil rises that alternative energy related stocks would rise. Investors are throwing the baby out with the bathwater and that's not a place you want to be.

I am away till Tuesday and will update the blog mid-week.

Wind Energy Report

I will be flying all day and will not have time to update the blog. For those of you interested, I have attached a link to a 30 page report entitled "20% windpower by 2030" issued by Black & Veatch.

http://www.20percentwind.org/20p.aspx?page=Report

Interesting Day

We have been saying that with this volatile market you need to protect the portfolio with puts. Well, with our portfolio we had a perfect storm this morning as the markets were up and crude oil slid, sending our hedge down and the alternative energy stocks down. We covered the puts after the Fed spoke and the portfolio didn't do too bad so we will see where we go from here.



The market continues to look ugly and could continue like this for sometime. We don't believe oil will drop in price to the point where the markets write off alternatives (again), and will look forward the portfolio to regain momentum. Our current holdings include:





OTTR


HQS


DAR


WGOV


BCPC


BWEN

Let the music do the talking

We have a few minutes till the Fed meets so I decided to throw out an interesting trade. Activision (ATVI) releases Guitar Hero Aerosmith this Friday and there may be a decent "pop" in the stock.

Broadwind Energy (BWEN)

We are taking advantage of the decline in Crude Oil this morning. Alternative energy stocks are pulling back on the news and we are using the opportunity to add another position to the portfolio, Broadwind Energy (BWEN). The chart setup shows great risk/reward with a price target of $32

THE FED

We will wait and see what the Fed has in store for the market tomorrow. Our portfolio is neutral.

Buying on the dips

we are using the selloff to buy more Darling International (DAR) that we highlighted last week. The stock has pulled back perfectly and bounced of its 50 Moving Average.

Another day...

The major indexes look horrible here and there is no reason to get aggressive or take on additional positions without covering your portfolio to the downside. We have been saying this for the past few posts and we say it from experience. We took an additional position today on the Russell 2000 (IWM) puts. The worst case scenerio for the ITM portfolio is if Oil comes down (alternative energy will come down also) and the market goes up (will lose on our puts).

Take a look at these charts and let us know what you think.

We look forward to your comments.

Investing 101

Just a reminder to ALWAYS have shorts on to protect your portfolio. We have QQQQ puts that will keep us flat either way the market trends. We will slowly start scaling back on either the puts or the positions depending on which way we go.

btw/ Netflix (NFLX) is getting very close to breaking long-term support.

SELLOFF!

The market is selling off as the June options expire today and oil heads higher. We are not backing off our portfolio at all and in fact will be using the dip to buy more wind energy stocks. We just picked up a position in Woodward Governor (WGOV).





**In times like these you MUST have shorts on to protect your portfolio.

Rendering a new stock

Many of the stocks we highlight at ITM are very high priced and somewhat volatile. With the market acting like a yo-yo or slinky we decided to add a nice steady mover to the portfolio. Darling International Ltd. (DAR), was "green when green was just a color". The company has been around since 1882 and has solid fundamentals and management. Darling is in the business of rendering, recycling and recovery solutions to the nation's food industry. Basically, they take the used cooking oils and leftover animal waste from restaurants and turn it back into useful products (jet fuel, tires, paint etc.). They have recently started selling into the biofuel market which has started to gain interest in the investment community.The quarterly revenue growth (yoy) is up 45.70% and the quarterly earnings growth (yoy) is up 124%. The stock is trading around $17 and we feel that it is a steady mover that fits perfectly in any portfolio.

Don't let the sun go down.....

I can't say the market is "UGLY" without a single short idea....First Solar (FSLR) is showing signs that point to a selloff. The stochastics have worked very well in the past and we will see if this time is any different.

This market is...UGLY!

OTTR continues to do well as the new Wind Energy ETF was launched today (symbol - FAN)

HQS also continues to move higher

Let's see if we can hold support at these levels the market indexes. There will be plenty of opportunities either way but make sure you manage your portfolio to keep you in the game.

-Trader D

Char "COAL" getting too hot??

For all of our readers watching the commodities rage upward, coal has outperformed at a ridiculously furious pace. Can the trend last much longer?? I wouldn't get on the wrong side of this trend but everything that goes up comes down...eventually.

The following are monthly charts of the leaders:

-Trader D

Dryships (DRYS)

ITM is taking the 10 point gain on DRYS. Why are we taking are profits so soon? We feel this is a "tradeable" market where the volatility can be extreme. It may seem like a conservative approach but we like to lock in our profits and continue to look for great ideas until we see a definitive trend in which to trade. As always we appreciate your comments and feedback.

-Trader D

Taking quick profits on solars!

It is early morning Tuesday and Canadian Solar (CSIQ) just raised its earnings forcast and the stock is up big in pre-market trading. We have had a huge run in the past week and ITM is taking the profits (on YGE also) and moving on.

Aquaculture

The ITM portfolio had another great day with DRYS, CSIQ, and YGE posting big gains.

We wanted to introduce a new name to the portfolio. As the need for sustainable energy and food increases, the demand for the products that these companies produce rises. Along with the shortage of food in the world, fish stocks are being depleted at an alarming rate. The aquaculture sector is in the beginning stages of trying to meet the challenge of supplying "certified" fish and most companies are foreign based (making it hard to invest). There are only a few public U.S. companies in this sector and the only one that ITM believes has any merit is HQ Sustainable Maritime Industries (HQS).




This company languished for years in the bulletin board world until it finally moved up to the big leagues on the AMEX last year with a reverse stock split that lowered the share count to a respectable 11.4 million. As a matter of coincidence, Cowen & Co. initiated coverage today with an outperform rating (the only firm covering HQS).

HQS farms Tilapia in China (company is based in Seattle, WA) and provides Walmart, Whole foods, and just recently announced a large order from a U.S. fast food operator (rumored to be McDonalds or Burger King) that should have a "material" impact on future earnings.

There is as always a decent amount of risk, but with the move towards sustainability...HQS makes the grade.


-Trader D

Weekend Update

This past week we saw a lot of volatility without actually getting anywhere. The major indexes closed about flat to slightly down for the week. The risk level remains high so we still need to be setting tight stop losses as two of the stocks we highlighted last week broke down hard.

Apple Computer sold off after the lackluster iPhone release and over concerns about the health of CEO Steve Jobs

RGEN also fell hard, but due to a nice stop loss we only lost about 40 cents per share.




On a brighter note, BCPC made a 52-week high (on relative light volume)



and OTTR continues to do well.




Dryships (DRYS) held it's support at 70 (hitting 70.04 on Thursday)

The solar picks CSIQ and YGE are both up also...






We have an exciting Aquaculture stock we will be highlighting this week that we need to do a little more work on. We appreciate all of our readers and have a lot planned this year for Into the markets!

-Trader D

Balchem (BCPC)

Balchem Corp (BCPC) is making a new high today. We just need some volume here to start squeezing the shorts out. I will update all the recommended stocks that we are still following after the close today.

-Trader D

Welcome DBHers!

Welcome to our new site. we have lots planned and look forward to starting up in our new place. The walls have all been freshly painted, and the carpets are new!

www.intothemarkets.blogspot.com

Deathboxhell is being rebranded to Into the markets! Due to the fact that the name does not represent what we actually are....a stock trading blog. Tell all your friends and family about the change and we will see you around the block at www.intothemarkets.blogspot.com