Aug
12
Took a small trade today in HL after spotting a potential trend reversal off a multiple bottom chart formation. Here’s a view on the 30-min chart.
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The stock price seems to be respecting the 6.50 level. The buyers step up at that price and it hasn’t violated 6.50 in a few days. Exactly one year ago, almost to the day – the stock bounced off the same level and never went below 6.50. Looks like a potential bottom. The stock is extremely oversold and offers a decent trade as I can take just under a 2% risk with a stop at 5.49.
The green line represents the entry price at 6.62. the red line is where the stop-loss is at 6.49.
Since the stock is moving sideways I took a 1/2 position and will look to possibly take the other 1/2 on a break of the downward sloping white line. Depending on if and where the fill occurs the initial stop will get moved up. Regardless the risk will be kept under 2%
I’m looking to scale out on a 4% and 8% move up, maybe keep 1/3 with a 12% target.
We’ll see how this plays out…
Aug
8
What a day, what a day..
DOW up over 300, yikes!
Here’s why we continue to do what we have always done, build software to pick stocks.
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Wow. FSYS started showing up in our "Focus" scan Aug 4, which was just the start of big things to come. On Friday Aug 8, it popped in right after the open as a 4-Green bulb pick. It’s not often you will see a stock move like this did today, up over twelve bucks and more than 29 percent.
I love when people ask why we can’t pick stocks like this "before the big move". I tell them sure we do, they just have to pay attention.
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The new scanners we run in the Research Lab are really isolating the leading stocks on a daily basis, however I always mention that the picks themselves are only a part of the puzzle. They are not related to trading time frames, position sizing, or entry and exit strategy, they are simply good stock picks. We use our scans to power our watchlists and each stock has it’s own characteristics which can only be observed by following the chart.
Trading strategy is always left up to the individual – we focus on picking kick-ass stocks.
Here’s a few recently added to the Watchlist:
AFAM
MANT
CPWR
QCOM
RMG
GAS
FSYS
DISH
TTEK
MDCO
GPRO
SYNA
Signing out for the weekend!
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