DreamTai Trading Software Blog: January 2007

Thanks for the great software! I use it regularly to help me decide what to buy from my list and when to start thinking about selling a stock.

Just wondering how you obtain the first profit target on the reports page? Also, you regularly post a list of stocks that are ranked according to stock power ranking. Where do you get your original list from?

Hi,
The first profit target is equal to the risk. If you are buying a stock, the profit target is the profit amount equivalent to the risk ( Buy price - Stop loss sell order) undertaken.

Some traders sell half their stocks at the first profit target and then move the stop loss sell order to break even.

So, their trade will not end up being a loss. At the worst it will be a break even trade or will have a little profit.

To create a stock scan list, you can use many sources like stockcharts.com, barchart.com or look at Investor Business Daily newspaper Monday edition.

Hi,

Stock Kisses are an important concept to understand the behaviour of a stock and the structure of the overall market.

Let me explain the concept of Stock Kisses by a fairy tale.

STORY BEGINS HERE ==============

Once upon a time,long long ago, there was a crazy young man named Mr. Stock.

Mr. Stock was hyper emotional and moody..That means sometimes for no reason at all, he would be really happy and sometimes he would be sad and depressed.
When he was happy, he would be laughing and screaming and jumping up and down all day long.
When he was depressed, he would just sit and stare and do nothing. He would neither eat nor drink.

He had a lady friend called Miss 20DMA (Twenty Days Moving Average).

Whenever Mr. Stock was tired and depressed he would go over to Miss 20DMA and tenderly kiss her on her rosy cheeks.

If Miss 20DMA smiles, he becomes happy and excited all over again and starts screaming and laughing and jumping up and down. ( I told you before that Mr. Stock was emotionally unstable..)

If Misss 20DMA resists him and shoves him away, he gets depressed and sad.

However, hope is not lost, my friend!!

He has another lady friend named Miss 50DMA (Fifty Days Moving Average). He goes and searches for this second lady friend and tried to tell her about his tragic story.

Mr. Stock then tries to passionately kiss Miss 50DMA on her cheeks.

If she smiles back, he forgets his misery and starts laughing and screaming happily and and jumping up and down..( As I told you before, he is crazy..He needs to be in a Mental Asylum !!..)

..and guess what ??..He gets so happy and excited that he leaves Miss 50DMA right there and goes to his first lady friend Miss 20DMA and tries to kiss her AGAIN!!

If she accepts his kiss, he gets REALLY REALLY HAPPY and WILD and really starts jumping up and down for weeks.

If she refuses, he comes back to his second lady friend Mis 50DMA again..

If Miss 50DMA (the second lady friend) also rejects him, he goes into a serious depression and just refuses to be happy till Miss 50DMA accepts him.

And so Mr.Stock lived this crazy emotional happy-sad life ever after!!!!

END OF STORY ==========

The story may be fictitious, but the emotions behind it are not. A stock just follows the wild untamed emotions of the investor crowd instead of precise mathematical logic.

One of the most important support levels for a stock is the 20 days moving average. (Which is shown as a blue line in DreamTai)
The stock price comes down and kisses the 20 day moving average for support and then bounces back again.

If the 20 days moving average rejects the stock kiss, the stock runs down to the 50 days moving average for emotional support.
(The 50 days moving average is shown by a purple line in DreamTai)

If the 50 days moving average also resists the stock and acts as a resistance, the stock goes into a bearish decline.

Now, you may ask, why 20 day moving average and 50 day moving average? Why dont we use 25 day or 35 day moving average?
That is because 20 day and 50 day is used by many investors, hedge funds and financial institutions all over the world. Many financial institutions have set automatic programmed triggers by which they would short stocks which break below 50 day moving average.

Don't just believe me. See the charts below for further proof about the existence of Stock Kisses.

Now, how can we make money with this knowledge about Stock Kisses and the emotional behaviour of stocks ?.

One of the least riskiest time to buy a stock in an uptrend is just when the stock is about to kiss or has just kissed the 20 Day moving average or 50 day moving average. At that time, we know that there will be only two outcomes..One is that the stock will rebound back after the kiss, or the other option that the moving average resists the stock advances and the stock falls furthur.

So, if you place a buy order with a stop loss sell order just a little below the moving average, you will be risking very small quantity.

Have a look at the charts. Most of the time in an uptrend, the 20 days moving average accepts the Stock Kiss and the stock jumps higher.

Look at some of your stocks and please write back if you have any questions about Stock Kisses.

Stock Ticker Name	Power Ranking	Last Closing Price	Strategy	New Buy New Sell
SVVS	7.94	44.82	BUY 51 shares at 45.12 Put Protection Sell Stop at 41.2 First Profit Target=49.04 Total Investment=2301.12
TSYS	7.16	3.81	BUY 322 shares at 3.98 Put Protection Sell Stop at 3.36 First Profit Target=4.6 Total Investment=1281.56
VARI	7.07	53.51	BUY 61 shares at 53.58 Put Protection Sell Stop at 50.33 First Profit Target=56.83 Total Investment=3268.38
SUNW	5.91	6.64	BUY 377 shares at 6.68 Put Protection Sell Stop at 6.15 First Profit Target=7.21 Total Investment=2518.36
TWTC	5.88	23.28	BUY 93 shares at 23.67 Put Protection Sell Stop at 21.52 First Profit Target=25.82 Total Investment=2201.31
SSRI	5.54	33.76	BUY 106 shares at 34 Put Protection Sell Stop at 32.12 First Profit Target=35.88 Total Investment=3604
FPIC	4.05	43.89	BUY 40 shares at 44.02 Put Protection Sell Stop at 39.14 First Profit Target=48.9 Total Investment=1760.8
CPTS	3.37	23.19	BUY 122 shares at 23.71 Put Protection Sell Stop at 22.08 First Profit Target=25.34 Total Investment=2892.62

Stock Ticker Name	Power Ranking	Last Closing Price	Strategy	New Buy New Sell
INNO	20.56	1.33	BUY 606 shares at 1.47 Put Protection Sell Stop at 1.14 First Profit Target=1.8 Total Investment=890.82
JADE	16.92	7.53	BUY 144 shares at 7.56 Put Protection Sell Stop at 6.18 First Profit Target=8.94 Total Investment=1088.64
ICAD	15.4	4.88	BUY 208 shares at 5.01 Put Protection Sell Stop at 4.05 First Profit Target=5.97 Total Investment=1042.08
LORL	8.53	48.11	BUY 31 shares at 48.97 Put Protection Sell Stop at 42.65 First Profit Target=55.29 Total Investment=1518.07
HYSL	8.09	42	BUY 52 shares at 42.1 Put Protection Sell Stop at 38.32 First Profit Target=45.88 Total Investment=2189.2
IPSU	7.82	31.7	BUY 34 shares at 33.18 Put Protection Sell Stop at 27.39 First Profit Target=38.97 Total Investment=1128.12
KOSN	7.56	7.15	BUY 156 shares at 7.37 Put Protection Sell Stop at 6.09 First Profit Target=8.65 Total Investment=1149.72
KNOL	7.53	13.04	BUY 128 shares at 13.06 Put Protection Sell Stop at 11.5 First Profit Target=14.62 Total Investment=1671.68
FMCN	7.01	84.35	BUY 19 shares at 85.86 Put Protection Sell Stop at 75.7 First Profit Target=96.02 Total Investment=1631.34
GMCR	6.59	58.68	BUY 42 shares at 58.99 Put Protection Sell Stop at 54.23 First Profit Target=63.75 Total Investment=2477.58
HMSY	6.34	19.33	BUY 112 shares at 19.45 Put Protection Sell Stop at 17.67 First Profit Target=21.23 Total Investment=2178.4
GCFB	6	5.95	BUY 181 shares at 6.2 Put Protection Sell Stop at 5.1 First Profit Target=7.3 Total Investment=1122.2
IMKTA	5.85	36.81	BUY 59 shares at 36.93 Put Protection Sell Stop at 33.55 First Profit Target=40.31 Total Investment=2178.87
MGIC<---- New Buy	5.83	2.8	BUY 333 shares at 2.99 Put Protection Sell Stop at 2.39 First Profit Target=3.59 Total Investment=995.67	MGIC<---- New Buy
ISSC	4.85	20.05	BUY 104 shares at 20.1 Put Protection Sell Stop at 18.19 First Profit Target=22.01 Total Investment=2090.4
IOSP	4.4	51.65	BUY 39 shares at 51.69 Put Protection Sell Stop at 46.68 First Profit Target=56.7 Total Investment=2015.91
HLTH	4.32	14.08	BUY 168 shares at 14.18 Put Protection Sell Stop at 12.99 First Profit Target=15.37 Total Investment=2382.24
ICGE	4.3	11.37	BUY 176 shares at 11.51 Put Protection Sell Stop at 10.38 First Profit Target=12.64 Total Investment=2025.76
INTX	4.08	11.98	BUY 246 shares at 12 Put Protection Sell Stop at 11.19 First Profit Target=12.81 Total Investment=2952
GMST<---- New Buy	3.61	4.09	BUY 416 shares at 4.21 Put Protection Sell Stop at 3.73 First Profit Target=4.69 Total Investment=1751.36	GMST<---- New Buy
MTRX	3.61	18.13	BUY 204 shares at 18.34 Put Protection Sell Stop at 17.36 First Profit Target=19.32 Total Investment=3741.36
LTBG	3.37	15.2	BUY 145 shares at 15.23 Put Protection Sell Stop at 13.86 First Profit Target=16.6 Total Investment=2208.35
IIVI	3.27	30.95	BUY 109 shares at 31.02 Put Protection Sell Stop at 29.2 First Profit Target=32.84 Total Investment=3381.18

Stock Ticker Name	Power Ranking	Last Closing Price	Strategy	New Buy New Sell
CLBK	10.37	48.48	BUY 17 shares at 48.69 Put Protection Sell Stop at 37.17 First Profit Target=60.21 Total Investment=827.73
CDCY	9.96	8.32	BUY 142 shares at 8.49 Put Protection Sell Stop at 7.09 First Profit Target=9.89 Total Investment=1205.61
GTN	9.64	9.05	BUY 227 shares at 9.12 Put Protection Sell Stop at 8.24 First Profit Target=10 Total Investment=2070.24
BL	9.41	41.89	BUY 28 shares at 42.02 Put Protection Sell Stop at 35.03 First Profit Target=49.01 Total Investment=1176.56
KKD	7.99	13.1	BUY 74 shares at 13.95 Put Protection Sell Stop at 11.25 First Profit Target=16.65 Total Investment=1032.3
CHL	7.28	50.65	BUY 30 shares at 50.67 Put Protection Sell Stop at 44.01 First Profit Target=57.33 Total Investment=1520.1
DIT	7.07	22.95	BUY 56 shares at 23.19 Put Protection Sell Stop at 19.64 First Profit Target=26.74 Total Investment=1298.64
HKF	6.52	3.72	BUY 168 shares at 4.27 Put Protection Sell Stop at 3.08 First Profit Target=5.46 Total Investment=717.36
ELY	6.51	16.91	BUY 67 shares at 16.96 Put Protection Sell Stop at 13.98 First Profit Target=19.94 Total Investment=1136.32
MBT	6.46	57	BUY 20 shares at 58.52 Put Protection Sell Stop at 48.74 First Profit Target=68.3 Total Investment=1170.4
EXAC	5.86	16.24	BUY 114 shares at 16.37 Put Protection Sell Stop at 14.62 First Profit Target=18.12 Total Investment=1866.18
CTC	5.76	9.4	BUY 186 shares at 9.52 Put Protection Sell Stop at 8.45 First Profit Target=10.59 Total Investment=1770.72
BPO	5.41	44.73	BUY 58 shares at 45.04 Put Protection Sell Stop at 41.63 First Profit Target=48.45 Total Investment=2612.32
GKK	5.37	34.34	BUY 55 shares at 34.37 Put Protection Sell Stop at 30.78 First Profit Target=37.96 Total Investment=1890.35
ISTA	5.09	7.87	BUY 277 shares at 7.89 Put Protection Sell Stop at 7.17 First Profit Target=8.61 Total Investment=2185.53
KUB	4.73	51.59	BUY 50 shares at 51.61 Put Protection Sell Stop at 47.63 First Profit Target=55.59 Total Investment=2580.5
AKS	4.67	18.64	BUY 64 shares at 19.5 Put Protection Sell Stop at 16.38 First Profit Target=22.62 Total Investment=1248
ATX	4.58	8.6	BUY 270 shares at 8.62 Put Protection Sell Stop at 7.88 First Profit Target=9.36 Total Investment=2327.4
EWM	4.37	10.29	BUY 317 shares at 10.31 Put Protection Sell Stop at 9.68 First Profit Target=10.94 Total Investment=3268.27
ITC	4.37	42.86	BUY 35 shares at 43.52 Put Protection Sell Stop at 37.92 First Profit Target=49.12 Total Investment=1523.2
ESCH	4.29	21.5	BUY 87 shares at 21.57 Put Protection Sell Stop at 19.28 First Profit Target=23.86 Total Investment=1876.59
CX	3.54	35.93	BUY 93 shares at 36.39 Put Protection Sell Stop at 34.26 First Profit Target=38.52 Total Investment=3384.27
BPL	3.26	49.82	BUY 50 shares at 50.27 Put Protection Sell Stop at 46.28 First Profit Target=54.26 Total Investment=2513.5
EWS	2.91	11.93	BUY 307 shares at 11.99 Put Protection Sell Stop at 11.34 First Profit Target=12.64 Total Investment=3680.93
HLTH<---- New Buy	2.2	13.34	BUY 224 shares at 13.48 Put Protection Sell Stop at 12.59 First Profit Target=14.37 Total Investment=3019.52	HLTH<---- New Buy
MBVA	1.94	9.65	BUY 312 shares at 9.67 Put Protection Sell Stop at 9.03 First Profit Target=10.31 Total Investment=3017.04
AYE	1.92	47.54	BUY 93 shares at 47.57 Put Protection Sell Stop at 45.44 First Profit Target=49.7 Total Investment=4424.01
ATF	1.86	114.46	BUY 55 shares at 114.52 Put Protection Sell Stop at 110.89 First Profit Target=118.15 Total Investment=6298.6
FRA	1.81	18.83	BUY 285 shares at 18.94 Put Protection Sell Stop at 18.24 First Profit Target=19.64 Total Investment=5397.9
ADRA<---- New Buy	1.39	33.65	BUY 162 shares at 33.67 Put Protection Sell Stop at 32.44 First Profit Target=34.9 Total Investment=5454.54	ADRA<---- New Buy
IYZ	0.98	30.1	BUY 235 shares at 30.33 Put Protection Sell Stop at 29.48 First Profit Target=31.18 Total Investment=7127.55

Wednesday, January 31, 2007

DREAMTAI Software Daily Report

SVVS

TSYS

VARI

SUNW

TWTC

SSRI

FPIC

CPTS

DREAMTAI Software Daily Report

INNO

JADE

ICAD

LORL

HYSL

IPSU

KOSN

KNOL

FMCN

GMCR

HMSY

GCFB

IMKTA

MGIC

ISSC

IOSP

HLTH

ICGE

INTX

GMST

MTRX

LTBG

IIVI

OPTO

Tuesday, January 30, 2007

Sunday, January 28, 2007

Saturday, January 27, 2007

Wednesday, January 24, 2007

DREAMTAI Software Daily Report

CLBK

CDCY

GTN

BL

KKD

CHL

DIT

HKF

ELY

MBT

EXAC

CTC

BPO

GKK

ISTA

KUB

AKS

ATX

EWM

ITC

ESCH

CX

BPL

EWS

HLTH

MBVA

AYE

ATF

FRA

ADRA

IYZ