Well we eked out a small gain today. Overall somewhat of a postive gain as even a point on the $spy is apoint. New highs are new highs. Only the Russell didnt rally today. Even though market was green the action was real choppy. Days like this are good days to accumulate positions but there is no momo or any volatility. You could tell that from the stocks we were watching in the boom factory. Great setups we had but without market momo even a great setup can just sit there.
I think days like this are better spent making watchlists doing research, talking about different stocks and less trading. Only picking the perfect setups. That was one of my big mistakes today. We got caught in the hoopla of being the boom factory and instead of waiting patiently for the ideal setup we forced the issue. You will see me be more patient from now on.
Bear with us for the next week or so. This is all new to all of us. WE are constantly updating and improving our methods. We threw out over 200 emails last night and had a midnight conference call just to work on improving your user experience. I take your gains and losses much more personally than I do mine or you do yours. We will better everday and have some new exciting things coming up soon. Also give us feedback too! Tell us what you would like to see how you want to see improvements, goals for yourself, types of investing that interests you. Also things you want to learn about trading.
As you could probably tell by the choppiness the volume was light today. We are starting to get a little overbought which slightly increases the risk when adding positions. Ideally a nice pullback to $spy 110 area would offer us some low risk entries.
I will add a few new stocks today but I would like to go over the charts of some of the names that have been traded in the boom factory. Lets see whats worth keeping and worth dumping or at least putting a stop in place.
$puda took a 1/2 pos here in the 5.5s. The piercing of the lower bollinger is an indication of an oversold snapback coming. Ideally. You would like to see the stochastics under 10 to indicate extreme oversold conditions. This is why I only too 1/2 a pos. If it went lower to the 5s that probably would have given me the full reading which would increase the probability of a successful trade. As for now since it has bounced up to 5.82 I will let it ride and revaluate along the 6 area.
This stock is tricky. Longterm its got a good outlook. As you can see there is some pretty strong support from the .60-.70 area. Ideally thats a decent buy zone and should hold. I personally not playing this stock. Technically I didnt get the trigger I want. Yes its stretched but that was due to earnings not a technical factor. Longterm if you can add some .60-.8 you got yourself a decent deal. Remember these are otc stocks so when you get profit. TAKE SOME….they are otc for a reason.
$ts short. Looks like I will cover at the open for 1 dollar loss or so. in mid 42s. Im surprised that the news on hugo chavez nationalizing the company didnt knock the stock down.
Regardless I would do this trade 100x in a row. Reason. If it works even 1 time your gonna make 20-30%. If you lose your down 2% or so. thats a great risk to reward.
Taking many small losses is ok as long as book big gains on your winners.
$fbp—this stock is one of those risk/reward ratio trades I like. See the chart stinks and there is a good shot I might get stopped out. But the stock is on its bottom so if it runs I can make a nice gain. If it doesnt work I take a small loss. I originally got in here on some insider buys and it being on its bottom.
If it dips below 1.6 I will just take the 5cent loss.
This one my timing was off. I made 3 partial buys 2.4s, 2.3s 2.2s. You will often see me do this on a volatile stock that I dont know very well. There are some stocks like $bee that i know them so well and the way they trade, the range, the feel. with a new stock I dip my toes in. Thats why you see a scaling in. The stocks at 2.29 right now, Im about 6 cents under my buy price. If this stock opens weak I will just dump fundamentally the company is not that solid. Good sector, there is some momo there but WE need to use great risk managment when the market is overbought because if it turns for a couple days. These type of stocks will dump 30%. DO not take big losses. Thats my mantra even if we have to give up some gains for it. Technically it looks like it has bottom but it faded all day yesterday. This is on my dump list if it opens weak.
$nep We all know the story on this one. Great longterm play. For the shorterm its in no mans land. Due to the lack of coverage in this stock by the street it tends to be choppy. Fundamentally it has the best margins of any stock in the oil business. New fields are coming online next quarter which will add huge revenue with very little capital cost. But still this stock never even reacts well to good news. Its an IRA trade play. Thats how I play it. When it dips bigtime and starts hitting oversold readings I add some in my IRA once it hits 5s I start scaling out. This thing cant be just scalped or daytraded. Not liquidity or movement. Its not a buy or a sell. If you have it…..its a hold. If you dont wait for it to get oversold and dip a little before you add. See the stochastics on this chart, every dip below 20 and it tends to snapback. thats how I would play it.
$stsi it is holding the .78 area. if it goes below then I will just dump it. Its basing here. New insider buys getting posted everday. It has potential but it hasnt popped yet so thats a flag.
$eds $idi $zstn all are still in play.
For $eds $idi i use a position trading style on it. I keep a core position. On big dips I add 1/4 shares. On bounces I unload a few. I keep doing this till I get the avg I like while the company builds for a breakout.
Patience is required for these: the floats are so low 1 big buyer can launch them.
When we 1st traded $rino and $trit both companies traded 15-20k shares a day in volume. But we knew the story behind them. 1 month we accumulated Rino below 8 bucks patiently waiting. $rino hit 30 bucks yesterday with millions in volume.