I’m long JDSU shares and here’s why I’m buying more




Futures are higher this
morning. Markets across the globe trade higher.

That is the gist of it. Market
is neutral right now. Could move either way. Lots of churning going on. That is
the nature of the current U.S market. If you invest in major market indexes then
you are not fairing well this year. We are not in a bear market. This market is
still bullish and the fat lady has not sung the swan song. She is waiting in the
wings, patiently waiting in the wings for the signal to waddle onto the stage
and belt out that fatal final note. It’s not over yet. The weather has changed.
The season of weakness is about to give way to the season of strength. The best
time to build positions to take advantage of the next wave is between seasons.
No doubt there will be reaction to the upcoming earning season. Just more stuff
to talk about. Well let the charts do the talking. It is my contention that the
best way to play this current market is by picking stocks that are showing an
advance and playing them. Select the advancing stocks to play for a day. That is
certainly doable. Basically in this market playing for a swing is the best way
to go. Cycles are shorter and shorter. There really is no established time frame
when approaching the market using the stage analysis method. It’s my style. The
style that I have adopted and kind of evolved into. So in this piece without
wasting anymore time I will get into and follow up with several instruments that
are timely long and short.



Procter & Gamble
(
PG |
Quote |
Chart |
News |
PowerRating)
57.10




This lovely chart is ready to
rock and roll. It is ready to move beyond the old high made almost a year ago.
It is on the verge of extending its advance after a long pause in the action. If
PG can cross 57.40 on a close then the advance persists and the next level is
higher. Don’t fight it. Don’t avoid it. Get on it. I am involved and will
pyramid the position and double it when the stock crosses 57.40. It is on the
verge. The move post crossing 57.40 ought to be satisfying. The risk is low. Key
inflection points trade tight. The stock did drift below all key inflection
points several times over the last year and never did trend into a serious
decline. Just sharp drops. If the stock fails to climb above 57.40 be ready to
dispose of the shares. No need to live with it in decline.  Place the stop at 54.99 for swingers and 53.99 for
those that wish to stick with it over time.



JDS Uniphase
(
JDSU |
Quote |
Chart |
News |
PowerRating)
2.18




Made a good call. Pat myself on
the back. The stock moved up 8% yesterday. It gapped at the open. It closed on
the high. It is down over 31% this year. The advance is underway. It’s up 19% in
the last 5 days. How obvious. So play it. I am. I am playing this for all I
could get out of it. That is all I care about. I will milk it for all I could
get out of it. That is the approach I take. I could care less about JDS Uniphase.
I don’t care about it. I care about JDSU. That is what I care about because I am
involved. I want to buy more and looking for a way in. I will nibble at it all
the way up to 3. It is in the 3-4 zones where stiff resistance may stifle the
advance. It gets exciting if that stiff point is overcome. Then it angles toward
the 52 week high at 3.58. If it rises above 5 then rockets red glare. Right now
it is at 2.18. Several years ago JDSU traded at 104. That is the ultimate peak.
Lets just get to 3.58 right now. The current move is accompanied by heavy
volume. Over 154 million shares traded yesterday. Take a peak at the chart and
see the break out. Place the stop at 1.85.



GOLDCORP INC
(
GG |
Quote |
Chart |
News |
PowerRating)
19.50




I am still involved in GG. I
trimmed above 20. I am ready to buy it back coming in to the 18-19 zone. That is
where I plan to build the position back up. Metals are adjusting right now. The
short-term action is negative but the overall long-term trend remains solid.
Gold is bullish as is energy. That is not changing for a while. Play this one
coming into the 18-19 zones. The risk is lower at that point. Place the
protective stop at 16.99.



Red Hat, Inc
(
RHAT |
Quote |
Chart |
News |
PowerRating)
16.92




This stock is trading very well.
I must confess that I disposed of it the other day. I am flexible. I bought it
back. Can’t miss this advance. When you become aware of the reality concerning
the trend in a stock and have confidence that the trend ought to persist then
why avoid it. If you have the means to get involved in a stock that is advancing
and RHAT is advancing then just do it. Just get up and go for it. The result of
that action will lead to satisfaction if making money is what satisfies. Some
don’t care about making it. They just want to have. I get off making it.
Building it. So RHAT is an instrument chosen to do just that. The purpose of
being involved long this stock RHAT is to build the stake I have. It is one of
32 stocks I carry long right now. The advance comes on the heals of a nice base
that followed a wicked decline. RHAT is extended. If it pulls back into the
15-15.75 zones then the risk is less. That is the spot to buy it. Use 13.99 as a
trading stop.



Sprint Nextel Corporation
(
S |
Quote |
Chart |
News |
PowerRating)
23.95




I am short this instrument
because the chart tells me that it is at the very beginning of a decline after
forming a top after making its last peak on 8/12/2005. The decline is not even a
month old. I say it is on the verge of decline because the shares currently
trade below all inflection points. Short to long term, it is negative. The best
way to play S is to sell it short. It is timely. The stock is down over 3% this
year. It is up over 20% in the last year. It trades below all inflection points.
In a robust market it goes nowhere. The risk is low. Trade it tight. Use the
10-day line. With a 24.45 stop on part and 25.60 on the rest.



Home Depot
(
HD |
Quote |
Chart |
News |
PowerRating)
38.39




A good stock to sell short. No
question about that. HD is in decline. How severe the decline remains to be
seen. The decline just began. It is just getting underway.HD trades below all
key inflection points. It is negative across the board right now. The stock is
down 10% this year and flat over the last year. The stock has the potential to
fall down to 35 where it could hold. If it breaks below 35 then you hit for the
slam.  Place the stop at 41.10




I am always concerned about the
market. I am especially concerned about the stocks I am involved in. Always.
This week the pennant race is grabbing my attention. The pennant race in the
American league. It is a 4-team race and it appears the White Sox are safe. The
Yankees and Red Sox will fight it out in Boston. Perhaps the White Sox will
sweep the Indians. The Yankees will manage to win the World Series beating the
Braves in a classic battle 4-3.


Jack Rothstein



Rothstein Investment Advisory Services, Inc.


3600 Chain
Bridge Road, Suite 200

Fairfax VA 22030

Phone
888-343-4825 — Fax 703-385-7232

www.jrmoney.com
www.wealthcast.com

Jack Rothstein is the
President of Rothstein Investment Advisory Services, Inc. and is a 20-year
veteran stock trader and a money manager.

Mr. Rothstein also writes Wealthcast, a monthly newsletter about the technical
behavior of the markets. He has been quoted on Bloomberg, CNNFn, the Dick Davis
Digest and the Dow Jones Newswire. Since 1993, Mr. Rothstein also hosted
WealthCast, a radio show in the Washington DC area covering the stock market.