Saturday, February 26, 2011

Trades I tweeted on Friday...

I would not bother with the suggestions I made that did not trigger. These were $LDK above $15.00 after and analyst upgrade and $CHCI above $1.70.

The other stocks that I was focused on were $SRZ, $TRLG and $OVTI. I will show you why these stocks were on my radar initially and then later the patterns that I saw that I thought presented favorable risk/reward potential.

$SRZ reported better than expected earnings and broke out of a two week base in the morning to new 52-week highs on massive volume. I found this stock using FINVIZ. This is about what I would have seen at mid-morning.

More specifically this is what I saw on the 15 min chart:

At 1. I saw $SRZ attempting to break out of an ascending triangle pattern and tweeted: $SRZ breaking out!!. About an hour later at 2. I saw $SRZ failing to hold support at $10.40 and then coming in with lots of prints on the bid and tweeted: $SRZ failing...time to jump ship!!!. So this was a good set up that simply failed and had you taken this trade you would have been out with only a 2% loss!

Like $SRZ , $OVTI reported way better than expected earnings after hours and spiked on massive volume. I did not see this stock after hours on Thursday but instead  in the pre-market on Friday. I caught this one off the NASDAQ pre-market most active list. I looked at the daily chart and saw that $OVTI was selling off on heavy volume in the weeks leading up to earnings. So it seemed as though the announcement would have caught a lot of short sellers as well as sellers on the side lines off guard! So I tweeted at the open: Keeping an eye on $OVTI today which announced way better than expected earnings; looks good for buys on dips/consolidation break outs.... This is what I was looking at:

At the bar highlighted in yellow, I tweeted: $OVTI looks ready to go here!!!!. Unlike $SRZ, $OVTI followed through although some patience was required initially (with real companies more patience is required) and it eventually got as high as $32.50 after hours for more than a 7% gain from where I recommended buying!

$TRLG was the third stock that I was looking at on Friday. It too reported better than expected earnings in after hours and broke to new 6 month highs after trading sideways for months on massive volume. Intra day it had a nice low volume pull back to the $23.50 - $24.00 support level This is what I was looking at:

At 1. I tweeted: $TRLG looks a good buy now with a stop at $23.50ish.... At that time $TRLG was trading at about $23.85. At 2. when $TRLG was trading at about $24.50, I tweeted: $TRLG bouncing nicely...may re-test the $25.00 level and then possibly break out.... As you can see above that is exactly what $TRLG did leading to about a 5% gain from where I recommended buying! 

Holders of these positions should be looking to sell into any morning spike on Monday for even bigger gains. 

Hope this helps...good luck and good trading!

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