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The following two videos contain some stocks on my watch list. Please keep in mind that the purpose of this blog is to help people with idea generation. If you trade some of these stocks, PLEASE, PLEASE, PLEASE use stops. In other words, if any of these stocks turn against you and the market doesn’t cooperate…PROTECT YOUR PORTFOLIO! Thank you and good luck trading!

Follow me on Twitter @jfahmy
Follow me on StockTwits @jfahmy

Follow me on Twitter @jfahmy
Follow me on StockTwits @jfahmy

Follow me on Twitter @jfahmy
Follow me on StockTwits @jfahmy

1) Democrats and Republicans will fight and continue to hate each other (gotta start with something attainable so I can at least get one of these right).

2) Google ($GOOG) will get back into China and, as a result, Baidu ($BIDU) will get hurt. Even if this doesn’t happen, $BIDU has topped and will see $80 or lower at some point this year (it closed 2011 at $116.47).

3) The Los Angeles Dodgers will be in the World Series (trust me, I have that Sports Almanac from Back to the Future Part II and Biff has no idea about it).

4) Apple’s ($AAPL) growth will slow and the stock will perform in-line with the general market (plus/minus 5%). Of course they will still grow (20-25%), but you can’t sustain 50%+ growth when your sales are $110 Billion. Remember, there’s a big difference between a company and the performance of its stock.

5) We will see a third leg down in this Bear Market correction with a possible bottom in March/April. It will be swift and catch many people off guard. The only way I don’t see this happening is if the Fed starts QE3 (or some form of easing) to prevent the decline.

6) I will make my CNBC debut at some point this year. It will be in a hexagon split screen with Howard Lindzon, ZorTrades, Carrot Top, Josh Brown, and one of the Kardashians. It will be hilarious and one of CNBC’s highest rated segments ever!

7) Brett Favre will throw an interception. It might be in one of those Wrangler Jeans commercials, but I wouldn’t be surprised to see a short-term comeback later this fall.

8) The Mayans will be wrong and the world will NOT end on December 21, 2012. I know this because I just bought some Advil that expires on 7/2013. C’mon! The drug companies wouldn’t lie to us, would they?

9) Ancestry.com ($ACOM) will drop below $10 (it closed 2011 at $22.96). Their business model makes no sense to me and I can easily see Google or Facebook coming out with a free competing product to connect people and crush their business. After all, isn’t that what Facebook is for? Connecting us with people that we have successfully been avoiding for the past 15 years.

10) There will be a HUGE rally at some point this year. It may only last for a few months, but it will be long enough for traders to produce a decent return for the year. My reasoning is that Obama wants to get re-elected and will use every resource available (Congress, the Fed, etc.) to make it happen. Don’t argue with it, just trade it and enjoy the ride!

All these predictions are for entertainment purposes only. If you take anything I say (or anyone else’s predictions) seriously, you deserve to be beaten with a wooden spoon . In all seriousness, I specifically did not give any long ideas because I’m not comfortable with the market right now. But don’t worry, follow my blog this year, and when the market’s healthy again, there will be PLENTY of trading ideas.

Happy New Year and best of luck in 2012!

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1) Women will continue to love over-priced cupcakes.

CORRECT: I started off with an easy one just to build confidence.

2) StockTwits will IPO as a Chinese Rare Earth Solar Biotech stock and gain +300% on its first day!

WRONG: It was obviously a joke, but nonetheless, incorrect.

3) SodaStream ($SODA) might end up being a fad, but I’ve seen fads run for a long time. I wouldn’t be surprised if they announce a distribution deal with Walmart, Target, etc. at some point in 2011. The stock is currently at $31.40…it could double from here.

CORRECT: $SODA went from $31 to a high of nearly $80 (a +150% gain). Of course I didn’t hold it for that entire gain because I am a trader and not an investor, but I still traded it several times successfully. Funny observation: Even though it has dropped considerably from its high, it’s still up +3.5% on the year, which is better than the market.

4) Beyonce will get pregnant and Jay-Z will have 100 problems.

CORRECT: I had to wait until the end of the summer for the announcement, but I knew Young Hova would come through.

5) Molycorp ($MCP) is a real story. The company could potentially earn $4.00-$6.00 in earnings by 2013. When the stock was at $37, I almost tweeted that it was my best idea for 2011…but I was too busy trading it. I recently sold it near $50 and I will look to buy it back at a safer entry point. It is currently at $49.30…it could double from here.

HALF CORRECT: Technically, $MCP didn’t quite double, but it made an explosive +60% in 6 weeks when I tweeted about it in March, and it was a triple from when I started trading it in Sept 2010. Yeah, I know it’s lost half its value this year, but once again, I can’t help you if you don’t trade with stops and have no sell discipline

6) Howard Lindzon will run for President, he might even run a marathon…either way, he’ll be chasing a Kenyan.

CORRECT: Howard ran well over 26 miles this year. They weren’t all in one day, but I’m still technically correct

7) Lindsay Lohan will go back to rehab and cocaine futures will plummet.

CORRECT: Easy prediction

8) There will be a bubble in people calling for bubbles.

CORRECT: Another easy prediction

9) Jazz Pharmaceuticals ($JAZZ) could be the next blockbuster drug company. They develop drugs to treat obsessive compulsive disorder, social anxiety disorder, bipolar disorder, restless leg syndrome and excessive daytime sleepiness…basically, what every trader suffers from. In all honesty, a few of my ex’s would make for a great clinical trial, LOL! The stock is currently at $20…it could double from here.

CORRECT: $JAZZ went as high as +140% this year and is STILL up 90%. I traded it once from $20 to $24 for a 20% gain, and never got back in because I couldn’t find a safe re-entry point. No big deal, a win is a win.

10) The market will go up and people will complain. The market will go down and people will complain. Bottom line: Everyone loves to whine…but real winners do something about it and the losers just keep complaining.

CORRECT: This is true EVERY year.

Overall, let’s call it 8-1-1. The performance of these stocks confirmed a few of my trading rules such as: 1) I’m a trader and I don’t care about getting the entire move, simply take what the market gives you 2) Use technical charts to help you get safe entry points and 3) I don’t care if the stock falls apart after I get out because, at the end of the day, ALL stocks suck!

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1) The higher volume recovery in the NASDAQ Composite.

2) The strong price action in some of the big caps: $PCLN $OPEN $CRM $WYNN $LVS

3) The solid breakouts in $ACOM and $BSQR

4) Additional stocks on my watch list.

Although I was a little cautious based on Tuesday’s action, Wednesday’s market showed strong signs of institutional support and that the uptrend remains intact. It also reminded me of a great quote: “It is OK to be wrong, but it’s not OK to STAY wrong.” In other words, it’s OK to form an opinion but ultimately, let the market prove you right or wrong and make the proper adjustments. Enjoy the video!

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2) StockTwits will IPO as a Chinese Rare Earth Solar Biotech stock and gain +300% on its first day!

3) SodaStream ($SODA) might end up being a fad, but I’ve seen fads run for a long time. I wouldn’t be surprised if they announce a distribution deal with Walmart, Target, etc. at some point in 2011. The stock is currently at $31.40…it could double from here.

4) Beyonce will get pregnant and Jay-Z will have 100 problems.

5) Molycorp ($MCP) is a real story. The company could potentially earn $4.00-$6.00 in earnings by 2013. When the stock was at $37, I almost tweeted that it was my best idea for 2011…but I was too busy trading it. I recently sold it near $50 and I will look to buy it back at a safer entry point. It is currently at $49.30…it could double from here.

6) Howard Lindzon will run for President, he might even run a marathon…either way, he’ll be chasing a Kenyan.

7) Lindsay Lohan will go back to rehab and cocaine futures will plummet.

8) There will be a bubble in people calling for bubbles.

9) Jazz Pharmaceuticals ($JAZZ) could be the next blockbuster drug company. They develop drugs to treat obsessive compulsive disorder, social anxiety disorder, bipolar disorder, restless leg syndrome and excessive daytime sleepiness…basically, what every trader suffers from. In all honesty, a few of my ex’s would make for a great clinical trial, LOL! The stock is currently at $20…it could double from here.

10) The market will go up and people will complain. The market will go down and people will complain. Bottom line: Everyone loves to whine…but real winners do something about it and the losers just keep complaining.

I will leave you with one final note and then a quote from Jesse Livermore. If you trade any of these ideas, PLEASE USE STOPS! So many traders love to criticize when someone recommends a stock and it goes down. What they really should be doing is criticizing themselves for not having a sell discipline. Remember…MAKE THESE IDEAS YOUR OWN! In other words, if they are too speculative for you, don’t trade them! Good luck in 2011!

“There is nothing new on Wall Street or in stock speculation. What has happened in the past will happen again, and again, and again. This is because human nature does not change, and it is human emotion, solidly built into human nature, that always gets in the way of human intelligence. Of this I am sure.” — Jesse Livermore

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This example applies to today’s stock market. Many people are expecting this rally to end any day now, but I wouldn’t be surprised to see the market “fool the majority” and continue higher over the next 3-6 months (with corrections along the way, of course). I’m not only basing this on psychology, but also on the strong market internals. I continue to observe a large number of stocks that are acting well. Specifically, stocks breaking out on strong volume and consolidating on lighter volume.

What amazes me is vast number of sectors represented by these stocks. Examples include: Semiconductors $CREE $AIXG $VECO, Restaurants $CMG $PNRA, Retail $LULU $DECK $SHOO, Machinery $DE $CMI $BUCY, China $BIDU $CTRP, Big Caps $AAPL $PCLN $AMZN, Biotech $DNDN $HGSI $JAZZ, Natural Gas $CLNE $WPRT. The scary thing is that I could keep giving more examples.

Bottom line: I still see healthy signs overall and I continue to recommend being invested in this market. Don’t forget to take profits on the way up keep and, as always, look to cut losses on your weakest performing stocks.

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Another positive sign is that many of the stocks listed above broke out on strong volume and pulled back today on lighter volume. If you missed some of these breakouts, I feel you can buy them on pullbacks to logical support areas such as their 10-day or 20-day moving averages.

My advice remains the same: If you are not invested in this market, SLOWLY get back in by buying 2 or 3 stocks. If you are invested, SLOWLY increase your market exposure by adding to your positions. The key is to do this SLOWLY! Why? Because if you jump back into the market all at once and chase extended stocks, you increase your chances of getting stopped out of your positions. In fact, I wouldn’t be surprised to see the market pullback over the next day or two. If this happens, I plan to take advantage of the opportunity by increasing my investment levels. Why? Because I’m currently finding a large number of stocks that meet my technical and fundamental investment criteria and these stocks could propel the market higher over the next 2-6 weeks.

I also suggest keeping a watch list of strong fundamental companies that are building sound technical bases. Some examples on my watch list include: $CLNE $JAZZ $VPRT $GMCR $MLNX $SHOO $HGSI $SOA.

Please keep in mind that the purpose of this blog is to help people with idea generation. If you trade some of these stocks, PLEASE, PLEASE, PLEASE use stops. In other words, if some of these stocks turn against you and the market doesn’t cooperate…protect your portfolio! Thank you. Good luck trading!

Follow me on Twitter @jfahmy