Bought Lundin Mining (LMC) and added more Mitcham Industries (MIND)

Sure was wild out there today. I was stopped out of my TWM trade but I did pick up some LMC and added some MIND shares today. I got lucky with the MIND buy, as it exploded about an hour after I got in. LMC looks strong but it has some work to do to make it up to 14.40, which is my price target.

US Gold Corp was huge today! That was nice to see.

This market still looks like a dead cat bounce to me, but that move today was powerful!!!

Mitcham Fundamentals (MIND)

MIND had a big jump today along with the other oil related stocks. I doubt it will last and we should see a pullback down to the lower trendline.

As promised, the a bit of the fundamental story for MIND is shown above. It is a graph of the exploration and development expenditures of the oil industry. What it clearly shows is that exploration has taken a back seat to development. If demand stays strong the analyst who presented the chart expects spending on exploration to ramp up. This should definitely help Mitcham Industries.

Mitcham Industries (MIND): Drink from the well

The chart for MIND is getting near that lower trendline again and the time to drink from the MIND well is fast approaching. I'll post a little fundamental data tomorrow, but here are the daily and weekly charts.

Sold Mitcham Industries (MIND)

I sold 80% of my Mitcham Industries postition before earnings came tonight. I picked it up on the lower channel line for $14.30. I'm expecting a "sell the news" reaction post conference call. I'll look to pick up more shares when it is back down to the lower trend line.

I love trading MIND!

Its all about sentiment

We are back to sentiment arguments again. You know the drill, when everyone is bullish the market goes down and when everyone is bearish the market goes up. Guess where we are now?

On one hand, you have a market being led by the Dow 30, with the small-cap growth stocks lagging for the most part, which has usually been a bearish sign. (Especially for the Canslim investor.) On the other hand, I don't care where you look, everyone is bearish right now. The Fast Money guys, Tom O'Brien, and even the average investor. (AAII investor sentiment was 54% bearish)

If you want to see an intersting chart, check this out.

You can read the full story here. It talks about how sentiment readings show that we are nearer to a bottom than too a top. Amazing.

What to do? I don't know. I guess I'll just keep my strategy of buying pullbacks and not breakouts. My MIND trade is moving in the right direction. My DNA trade is flat. UXG is still strong, while GTW continues to go sideways.

Mitcham Industries (MIND)

Although slightly bearish, I'm looking for some low-risk trades to the long side. Well today I jumped back into MIND. This is a company that leases seismic measurement equipment for the exploration of oil.

Remember, I traded this a while back for a nice little gain. Since then, MIND has bounced off a rising trendline and looks to be doing the same thing again. I would like to hold MIND until it gets back up to the $16.50 area. I will not give this much room to the downside because I believe that I just picked this up at the local bottom.

Exciting technicals - Mitcham Industries (MIND)

Most of the stock screeners out there are really geared towards the mid- and large-cap equities. It is hard to find a screen that allows one to discover new and relatively unknown stocks.

My favorite is the MSN Money stock screener. I have a CANSLIM screen for the fast growing companies based upon the criteria of William O'Neil. I also have a screen that I came up with that has the purpose of spotting stocks with increasing revenue but rather weak stock performance. It was basically modeled after the recent behavior of Flotek Industries. Durning the course of Flotek's growth, it was hit with a massive increase in its tax burden. The revenue was still growing (100% year of year), it was the EPS that went flat. As a result, the stock price took a nose dive.

The charts on the left are a daily, weekly and monthly of Mitcham Industries Inc.. This stock popped up on my simple revenue screen with the following numbers. They lease seismic survey equipment.

Rev. growth Qtr vs. Qtr - 56.50%

Rev growth Year vs Year - 31.20%

Return on Equity - 26.49

EPS Growth YTD vs YTD - 38.80%

Gross Margin - 64.30

Well, those are the fundamentals. What I'm excited about is the technicals. I've been watching for a while now and today we had a breakout today on pretty good volume. This is coming off of another breakout on November 15th that broke a long term downtrend channel line going back to Feb 2006. (See weekly chart) The really cool thing is the long term pattern. Look at the nice ABC pattern that is taking shape on the monthly chart. The A point is way down at 0.870. The stock then makes a huge run in three years to the B point of 26.18 (It finished with a climax top). The stock then retraces 61.8% to the C price point of around $10.

My price target is $25. If the stocks picks up some volume as it nears the highs (26.18), hold on to your horses because this might just go a lot higher. It will have to get more than 8 million on the monthly or 2.8 million on the weekly.