Market view

Overall we did not get the good rally yet I was looking for, probably I'm a bit too early , but the euro is looking like a potential bottom here 1.3. Remember the 1st of December is nearly always a green day, so expecting a green day today, but next days could be ugly. My weekly charts telling me we have more downside left and that its just beginning to head down, but daily chart suggest we have only a little bit more downside left before running higher.

In EW terms most people are looking this as a minor 4 wave down which is "sideways corrective looking" and lets see - cause it looks quite sideways action last weeks. IF this is true , then we should start a rally from here above 1170 SPX and then rally to first target 1230 and probably 1250 area. That should happend in December month into January....

But thats only if this wave minor wave 4, then we have the bear case which tells us that this is minor 2 up ( where minor 1 got from the top to SPX 1173 ) and then little flat corrective up again ti make minor wave 2. (Lower high than the 1228) - and then we should get down in minor wave 3 which should be ugly.

I think its very hard to say, but if you can trade markets both up and down short term thats the best choice. So for now looks like we get an upday today to maybe test 1200 and above (1207) and then down next 2 days. This is what I am thinking for now. I guess we will move down again... this is just based on my weekly chart which looks very ugly.

I wanna point out that the DOW jones looks the most ugly to me on weekly chart and as I have been long and strong the dollar all november and now changed to euro ( short term ) then I see the dow jones very BEARISH......my WEEKLY NASI chart also says we have 1 or 2 more weeks down or sideways before we should move up again. So question is just how low we will go...

Well good luck to all. Long euro/usd 1.3 for the short term, may go to 1.26-1.28 , but we will see...

Remember you can follow me on twitter for the small cap stocks I am going long in. Had and amazing week with trading PHHM for over 100% profit and DJSP entry $0.44 yesterday , looks brilliant today. I think DJSP could be the next 100% gainer, cause it have same kind of chart like PHHM, pincher play on the daily chart and weekly chart and the business they are doing in Florida is great. I think its pretty overdone and were a 13.5$ stock, now under 1$... lets see if it can move some today, should be a big gainer imo.

IMO the potential upside at this level significantly outweighs the potential for further negative pressure on the stock.


DJSP is a recently formed (January 2010) corporation that essentially combined several other profitable businesses into one entity. Before this date, the company was a shell company, i.e. it had money but no revenue etc., named Chardan 2008 China Acquisition Corp. The combination of the non-legal business from the Law Offices of David J. Stern (“DJS”), Professional Title and Abstract Company of Florida, Inc. (“PTA”) and Default Servicing, Inc. (“DSI”) (collectively, the “Stern Contributors”) formed the current company named David J. Stern Processing Enterprise (DJSP).

Now, you essentially have a company that helps people get through the process of foreclosures etc.

The important part is that all three business segments were profitable before the merger, and all three segments had a strong tradition of growing revenue and net income. Below is the combined revenue and combined net income for these three parts for the last several years:

2006: 40M rev., 9M net income
2007: 115M rev., 39M net income
2008: 200M rev., 43M net income
2009: 260M rev., 45M net income

Those are some pretty solid numbers. The best part is, DJSP primarily does business in Florida, ha ha ha, we all know how well FL real estate is doing right now! Thus, DJSP is almost guaranteed to continue growing revenue and profit as things are only going to continue to get worse as more and more mortgages are resetting the next several years in Florida and the rest of the country. Hello Alt-A and Option Arm loans!!!

The only concern I have is that we don’t have a lot to work with here, there is a long financial track record for the individual business aspects, but only about 6 months for the one single entity.



Have a nice day !