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CosmicLion
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Re: Stock Update for November 1, 2011 - X, GLD, AMZN [Re: Bambi]
#15311866 - 11/02/11 01:47 AM (12 years, 2 months ago) |
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Bambi said: Thanks for the advice man, i appreciate it. I know there isnt really anything concrete, but just having suggestions help. Gives me more things to try in order to find what suits me. I really need to start looking for resistance and support points in order to set some alerts and also figure out how to send them to my phone. I have really enjoyed reading this thread and the advice from it as i can definitely notice a difference in my stock skills since i stared in mid July.
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geokills
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Re: Stock Update for November 1, 2011 - X, GLD, AMZN [Re: geokills]
#15312440 - 11/02/11 08:23 AM (12 years, 2 months ago) |
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Sitting on my hands ahead of the FOMC announcement... but wanted to point out that X appears to be continuing the initial stages of its (as yet) unconfirmed phase 3 volatility expansion that I suggested could be starting yesterday, with a break above its 50 day moving average and already up over 5% on the day. We are still early in what could be a very volatile day, but the action on this stock is encouraging. Gold and silver are also moving higher this morning. Gold is getting close to confirming phase 3 of its volatility expansion, also moving back above its 50 day moving average. For trades that I'm not yet involved with but am watching closely, here are a couple of volatility squeezes that are definitely worth keeping an eye on:
- ULTA has a definite bias to the upside (look at that weekly chart). If it does break out, it will be breaking
to all time highs which means that there will be zero resistance overhead. Therefore, a breakout above $72.50 is the first (small) buy signal, and a continued move above the all time high of $74, particularly if it is done on heavy volume, is a definitive buy signal. I would also be interested in taking a preemptive long position at the 50 day moving average which is right around $65 - $67.

- MCP is a little different, in that its longer term trend is not as clear. Frankly, it is broken given that the
stock is trading below its 50 and 200 day moving averages. However, after the washout on heavy volume in September, the stock has clawed its way back to form a base, and we can now see the bollinger bands accelerating their squeeze, all while volume has been drying up in a big way. There isn't much of an underlying bias on this one way or another, so I would be ready to go long on a move above $41 or short on a move below $36. If the stock stays between $37 - $40 for another day or two, the bollinger bands will continue to tighten and your long/short triggers will require some adjustment. Set your alerts!

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Stonehenge
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Re: Stock Update for November 1, 2011 - X, GLD, AMZN [Re: geokills]
#15312719 - 11/02/11 10:09 AM (12 years, 2 months ago) |
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Monday and tuesday were shockers and were, imo, mostly due to the meltdown in europe. The market is in a bounce mode today but how long can that last? It looked like it was in recovery last week and a little bit the week before but now this. Did the candle sticks or bollinger bands predict monday and tuesday? I think that was from events in the real world which you wont find in stock charts. I think we will see more of this in the future. A rally that seems to be gaining speed and then whammo comes the fall off. I think by next year the dow will be under 10k and might test 9k.
Gold has held its own and seems to be drifting upward again despite the constant tightening of margin designed to keep it down. That brings us back to the question of what is a good investment today that will hold value? The dollar looks stronger since the euro is having its problems. But that is not an investment, just a form of money. If the stock market keeps this erratic and generally downward behavior, more and more people will pull out of it.
Banks are awash in cash and are not actively seeking deposits since they have a hard time reinvesting it at a profit. Gold should be good in the near term but i will have sold off my stockpile well before 20 years have past. There is not enough gold in the world to act as a new money. This is good for those who have some since it will keep going up for a while.
My sympathy for those who got clobbered in the market. It happens to a lot of people. I'm afraid we will see more of this since most major countries are stuggling with debt and internal problems. Debt will be made less relevant by inflation. This is bad news for those with cash. This is why i turned to real estate but prices are going up in my area making it hard to find bargains. I may have to settle for what i've bought unless the foreclosure backlog or "overhang" gets turned loose and we see more investment deals. At least in my area it seems that way.
I have over 45 in my scottrade account and i'm doing nothing with it. Who can confidently invest in this climate? I would move the cash out of there but i dont need it elsewhere. My gold and real estate may keep me off the streets but no one likes to get clobbered. Appl has held up well, somewhat surprisingly. I think energy stock might do ok, perhaps oil companies.
-------------------- “A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship.” (attributed to Alexis de Tocqueville political philosopher Circa 1835) Trade list http://www.shroomery.org/forums/showflat.php/Number/18047755
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geokills
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Re: Stock Update for November 1, 2011 - X, GLD, AMZN [Re: Stonehenge]
#15312804 - 11/02/11 10:31 AM (12 years, 2 months ago) |
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Quote:
Monday and tuesday were shockers and were, imo, mostly due to the meltdown in europe ... Did the candle sticks or bollinger bands predict monday and tuesday? ... A rally that seems to be gaining speed and then whammo comes the fall off.
Technical analysis can only take you so far and even technical traders will tell you that nothing goes up (or down) in a straight line. There will always be volatility, including irrational exuberance to both the up and down side. The fact that the market ramped 20% in about a month was a huge red flag that it was time to start being cautious, while recognizing that there has been a meaningful change in the market's behavior, namely a reduction of selling pressure. I spoke of buying SPY puts last week and had bought some SPY $130 puts on Friday (after being stopped out of some put positions earlier in the week), knowing that after such a voracious market ramp, even good news would be more likely to prompt profit taking. Successful traders will always be thinking in terms of probability, not absolutes.
I started to leg into longs yesterday, since we were coming back to test the breakout level of our two month trading range, in anticipation that the "change in market character" I spoke of might lead to buyers stepping in sooner rather than later. So far so good, but of course, the Fed's comments in the next hour could turn this market on a dime, and we are still susceptible to major headline risk from across the pond. 1197 on the S&P is a hard line for me. I will begin to pare back on my long exposure on a break below 1214, and a sustained break below 1197 would have me positioned completely flat.
There is no doubt that this market is exceptionally difficult to navigate and that all but the most disciplined of traders should be sidelined until the EU situation resolves one way or another. But if you are disciplined and know how to trade without emotion, you can make it through this period of market volatility, and you might even make a few bucks. Granted, the energy and discipline necessary to do so in this choppy market is not worth it for most investors.
On the real estate matter, prices in my area are still declining at a slow pace. There are still a ton of commercial real estate vacancies around town, and notably more people roaming the streets asking for spare change. Maybe we get better, maybe we get worse. But in the end, this too shall pass, one way or another. Do what you do my man, just make sure you're doing it with your eyes wide open.
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Bambi
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Re: Stock Update for November 1, 2011 - X, GLD, AMZN [Re: geokills]
#15312984 - 11/02/11 11:19 AM (12 years, 2 months ago) |
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Another question, what are the differences between the simple, weighted, and exponential moving averages? Which do you recommend looking at?
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geokills
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Re: Stock Update for November 1, 2011 - X, GLD, AMZN [Re: Bambi]
#15313071 - 11/02/11 11:46 AM (12 years, 2 months ago) |
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Simple moving averages take the summed average of the last X periods, divided by X, to give you a simple average. Exponential moving averages give more weight to the more recent values in the chain, thereby allowing them to move faster. For example, the 200 day EMA on the S&P 500 is around 1235 whereas the 200 day SMA on the S&P 500 is at 1273, because it hasn't reacted as fast to the past two months of carnage.
My most common daily chart depicts a 20 day SMA with a 50 day EMA and a 200 day EMA, along with bollinger bands that show the 2 and 3 standard deviation mark (you can see this on the charts I posted earlier today). I prefer my longer term averages to move faster, since the farther back in history you go, the less relevant the price action becomes. Hence why my 50 and 200 day averages are EMA, but my 20 day is an SMA.
My intraday charts most commonly use 15 minute candles with an 8 period EMA for the majority of the day. In the first hour of trading, I use 5 minute candles with 20 period SMA + bollinger bands that show the 2nd standard deviation.
Side note: I sold my Dec $160 GLD call options for a small profit. Dollar strength nailed GLD right around the time the Fed made its interest rate announcement and some Greece related BS shook the newswires yet again. The metal has been unable to stage a meaningful recovery on an intraday basis, recently posting a lower high intraday. I am still long a March 2013 $150 GLD call, but did not want to hold the riskier high strike / nearer term call while witnessing this price action. I have set an alert for a move above $169.68, which would likely trigger me to re-enter the riskier Dec call position.
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Edited by geokills (11/02/11 01:13 PM)
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sofa_king_happy
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Re: Stock Update for November 1, 2011 - X, GLD, AMZN [Re: geokills]
#15313414 - 11/02/11 02:47 PM (12 years, 2 months ago) |
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Bambi said: When is the best time to buy during the day?
For narrowing it down as to when to click confirm buy. Turn on the Bollinger Bands (BOLL) and try to buy when its closest to the Lower(red line).....Sell when closest to the green line
Today I sold my TTWO at 15.63, for a very small profit
PS. Geokills do you still have NTAP? I'd looking into hoping on that tomorrow
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Bambi
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Re: Stock Update for November 1, 2011 - X, GLD, AMZN [Re: sofa_king_happy]
#15314698 - 11/02/11 07:15 PM (12 years, 2 months ago) |
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sofa_king_happy said: Today I sold my TTWO at 15.63, for a very small profit
Why are you selling TTWO so early? I just got in at 15.30$ what do you know that i dont...
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scatmanrav
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Re: Stock Update for November 1, 2011 - X, GLD, AMZN [Re: Bambi]
#15315962 - 11/02/11 11:51 PM (12 years, 2 months ago) |
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I doubt he got in much lower then 15.30, I got it at 15.35. For me, its still a loss with transaction fees. Id assume hes just cashing in his profits. To me it still looks to be hugging the upper bolinger band though. I plan to hold it until it shoots over the upper band quickly (16.50 range, tomorrow, maybe friday). Or it drops below the middle line of the bolinger band next week (assuming it doesnt just shoot up over the next day or two. As long as it stays bouncing between the upper and middle line of the BB's it looks good to me. I look at it on the 3 month daily for that graph. The 1 year daily graph doesnt look as good for it, but I keep an eye on that too to make sure it doesnt jump to far either way.
The trailer looked decent, a lot of things to make the GTA community happy I think (going back to the original GTA location for one, the game just looks very promising).
I didnt do much else today, stopped out of GNK for a small loss.
Now I'm just holding TTWO, CS and HIG (back in a little bit yesterday on that big drop) and my two REITs (ARR, NLY) Overall, up a bit so it was a good day.
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sofa_king_happy
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Re: Stock Update for November 1, 2011 - X, GLD, AMZN [Re: Bambi]
#15317382 - 11/03/11 11:56 AM (12 years, 2 months ago) |
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Quote:
Bambi said:
Quote:
sofa_king_happy said: Today I sold my TTWO at 15.63, for a very small profit
Why are you selling TTWO so early? I just got in at 15.30$ what do you know that i dont... 
I don't hold things very long....I wasn't too impressed by the trailer. And to top it off, i couldn't watch the end of the trailer at the time due to a loading glitch. I saw the stock started to head downwards and assumed there was something bad at the end of the trailer such as a "comming out five years from now" or something tragic like that. So i pulled out.
Although it is better that its back in cali, then vice city. The guy talking sounds like the guy from vice city too! Which im sure fans will be happy about. However, its not going to be as big as the 4th in terms of hype. lets not forget http://calmdowntom.com/wp-content/uploads/2011/03/2002988337.jpg
Also another reason i pulled out was because i invested more then i was comfee with, to ensure the fees would not over powering my gain.
EDIT: i woke up late and didn't get on NTAP in time, ill just wait for it to take a dip, *sigh*
Edited by sofa_king_happy (11/03/11 11:57 AM)
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geokills
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Re: Stock Update for November 1, 2011 - X, GLD, AMZN [Re: sofa_king_happy]
#15317400 - 11/03/11 11:58 AM (12 years, 2 months ago) |
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For narrowing it down as to when to click confirm buy. Turn on the Bollinger Bands (BOLL) and try to buy when its closest to the Lower(red line).....Sell when closest to the green line
Keep in mind not everyone's software will use the same color codes (mine doesn't!). Also recognize that that the orientation of the bands with respect to the historical price action is not to be dismissed. For example, with stock that trades in a wide but consistent channel, it is appropriate to buy at the lower band and sell at the top. However, when a stock's volatility is low (see the discussion on volatility squeezes I posted above), buying at the lower band can land you in serious trouble unless you have a very tight stop. Since bollinger bands are a measure of volatility, and volatility is cyclical, tight bands will eventually expand. If they expand to the downside, the move can be very swift, so make sure that if you are buying at the bottom of a tight band range, you keep a stop very close below the band, in the event that it expands to the downside. On the inverse, you will generally do better by buying a stock with tight bollinger bands when the price is just starting to break through the upper band, as this will often indicate volatility expanding to the upside.
One thing I forgot to mention, is you should generally NEVER BUY THE OPEN. The opening market orders are often done from the least informed investors, and therefore are typically indicative of "dumb money" attempting to chase momentum or news that came out when the market was closed, leading to irrational buying or selling pressure, depending on the news and perceived direction of the momentum. In general, it's best to wait for the first 5 minutes to pass before making your first transaction, and then waiting for the first 15 minutes to pass before transacting in any meaningful way.
Quote:
Geokills do you still have NTAP?
I do not, and I would not be interested in buying today. I ditched this puppy on the 27th, when the S&P popped above its 200 day SMA. The market had put in huge gains over the past month and I expected there would be some profit taking. Remember, nothing goes up (or down) in straight line, and you should always evaluate your individual stock positions in the context of the broader market (i.e. S&P 500). Sector and broad market forces are responsible for at least 50% of the power behind any specific stock's move on average.
I never got back in to NTAP because the stock began selling off on increasing volume, which is a definite red flag. The stock is looking OK today, but the bounce off the 20 day that began yesterday was on poor volume with respect to the prior few day's of selling, and the stock is at the top of its bollinger band range, as well as approaching the resistance level from the 27th. It could scream higher, break through last week's high and then take a stab at the 200 day EMA, but I believe the probability is for the stock to grind around a bit here first, so I am not interested in taking a position right here, right now. If the stock does grind around on declining volume, the bollinger bands narrow, and the 50 day moving average catches up to price, that's when I'll reconsider buying this one back.
Quote:
Why are you selling TTWO so early?
There's nothing wrong with taking a profit my friend! We all must trade within our own personal range of comfort. When we violate this private discipline, we leave ourselves prone to a higher incidence of error and the dreaded phenomena of "trading on hope". Remember also that there can be many reasons for exiting a trade, including reasons completely unrelated to the market (e.g. I have a friend's wedding to prepare for on Friday, or perhaps I'm super stressed from my regular job, or I'm having relationship trouble, so I want to reduce my market exposure since I won't be able to effectively tend to my positions, etc.).
For what it's worth, TTWO is in a well defined uptrending channel that began in late August. The top of the range is just above $16.50 and the stock is currently at $15.76. While it does appear to have some more room to the upside, I would not take a NEW position right here. For those of you already holding the stock, I would set a stop below today's intraday low of $15.28. Because if the stock violates that level, it is likely to either trade sideways for a while or mark a lower high with respect to the price on the 28th of October, when TTWO hit the top of its uptrending channel. At that point, I would want to wait to see the stock fall back to test the low $14's, which coincides with both the lower end of the channel as well as the stock's 200 day EMA. This confluence should, if it transpires, produce a better buying opportunity. It is also worth noting that the stock is underperforming the S&P today, which is a sign to take caution.
I do not anticipate doing anything today, except raising my stops on a few positions. I would expect that by now, most of the big money has prepared itself for the worst case scenario with respect to the Greece sovereign debt issues, and therefore, while we could still see some resistance and churning here at the S&P's 200 day moving average, I would not expect a major pull back in the near future. If we do pull back, I would expect to see buyers stepping in at 1225 on the S&P. Nonfarm payrolls (jobs) numbers and the unemployment rate come out tomorrow, which can always make for some fireworks. The expectations are for an addition of 85,000 - 100,000 jobs and unemployment at 9.1 - 9.2%.
All the best!
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geokills
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Stock Update for November 4, 2011 - FSLR, RIG, X, ARMH [Re: geokills]
#15320964 - 11/04/11 07:57 AM (12 years, 2 months ago) |
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Jobs numbers were a little below target, unemployment as a % figure was a little better. Neutral opening today, but giving way to some weakness. On the day trade docket for me this morning: FSLR, RIG.
X continues to expand higher, though I would not want to initiate a new position today in front of the weekend. However, I am happy to hold my existing profitable position over the weekend.
ARMH is worth watching. I have been watching it for weeks in fact, but neglected to buy on Tuesday, which was the real buy signal on the rejection of the attempt to move below its 50 day moving average. Now I just have to set an alert and hope that the stock comes back to $29 to give me a better entry as I wouldn't want to buy it right here, up for its third day and outside its upper bollinger band.
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scatmanrav
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Re: Stock Update for November 4, 2011 - FSLR, RIG, X, ARMH [Re: geokills]
#15321008 - 11/04/11 08:19 AM (12 years, 2 months ago) |
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FSLR is one I've been watching,lots of upside, but doesnt it look like the trend is going down to you? Why do you think its bottomed?
Another lucky move yesterday I got into CLWR on a huge drop down spike. It was my first aftermarket purchase, dont really know if it was smart, but I've been waiting for a drop for entry.
TTWO is moving about even today so far, I think its got more upside still, still in a good range, hopefully more going up next week. If it moves 15.50-15.60 mark today or start of next week I'll let it go. I think it should go up to the 17-20 dollar range before hype will wear off. Probably be good to get again next year before the game comes out.
EDIT: Getting some UXG as well today on a dip.
Edited by scatmanrav (11/04/11 08:37 AM)
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geokills
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Re: Stock Update for November 4, 2011 - FSLR, RIG, X, ARMH [Re: scatmanrav]
#15321029 - 11/04/11 08:26 AM (12 years, 2 months ago) |
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Market weakening significantly. Don't really want to do much now, will probably take the rest of the day off... though it is an unusually rainy day here in southern California, so if I'm couped up inside and notice a trade, I will take it!
scatmanrav - In fact, I don't think FSLR has bottomed. $42.50 could be the low, but there's no way to tell right now and honestly, I think it's going lower. Solar is a heavily subsidized industry and those subsidies are waning. China has also turned solar film into a commodity, thereby reducing FSLR's prominence as a leading producer. You must read my comments carefully, as I specifically noted that FSLR was for a day trade. And on that note, I am out of that trade and not looking back.
EDIT: Wow, I got absolutely hosed on my FLSR trade this morning . I made a terrible oversight by purchasing weekly options instead of the monthlies. Because the weeklies expire today (and I had bought out of the money $52.50's -- christ, what was I thinking?), they are hugely volatile and while I should have immediately swapped them out for monthlies when I realized my error, I let emotion get in the way and never re-entered the trade after closing for a loss. That's the type of thing that can nag at you, but there's nothing to do now but look past it for the next opportunity. Some days you're the pigeon, other days you're the statue. I was solid stone this morning, I hate to admit! At least RIG is working for me, I will probably end up holding RIG over the weekend, so long as it holds above $48.50 into the close.
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Edited by geokills (11/04/11 09:54 AM)
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scatmanrav
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Re: Stock Update for November 4, 2011 - FSLR, RIG, X, ARMH [Re: geokills]
#15321102 - 11/04/11 09:00 AM (12 years, 2 months ago) |
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Ahh, I read it as "on TOdayS trade docket". Nevermind then!
Got out of CLWR, peaked hard and fast over the BB. I'm tired of hanging around waiting for my profits to disappear!
Still working on getting into UXG. Watching GY and IPG.
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Bambi
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Re: Stock Update for November 4, 2011 - FSLR, RIG, X, ARMH [Re: scatmanrav]
#15321411 - 11/04/11 10:35 AM (12 years, 2 months ago) |
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OCZ is looking fairly strong again today as it is hitting the bb again and the rsi is about oversold. I think ill be looking for an entry point early next week, maybe tuesday around $7.15ish since it still has room to grow before major resistance at $10 from its april highs or $10.75 from july's major resistance.
AFOP, a stock ive been watching for a while is heading up a bit today, maybe it will break out of its ongoing volatility squeeze. about a year and a half ago it underwent a similar squeeze and the stock prize about tripled. If nothing else, i believe in the fiber optics it sells and i believe it to have bottomed out. Ill be keeping my eye for it to go above about $9.
And then there are my two losers, VE and FNFG. I bought then in july right before they both effectively were cut in half. Ive been somewhat ignoring my position in FNFG as it is very small and was one of the first stocks i bought. VE is also is a similar boat, but it swings from low $13 to upper $15 rather often. I could see money being made off of this almost weekly occurrence, but i got in with a small position around $26 and dont see any point in selling now.
I dont think i will be doing much today, but hold on to VE, FNFG, TTWO, and ARR into next week, where some action may be taking place.
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geokills
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Re: Stock Update for November 4, 2011 - FSLR, RIG, X, ARMH [Re: Bambi]
#15321590 - 11/04/11 11:24 AM (12 years, 2 months ago) |
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Out of all of the stocks you mentioned Bambi, AFOP is by far looking the best technically. The only problem is, it's incredibly thin trade (hardly any volume). That type of stock can be prone to very wild swings, as you can see on an intraday chart the thing is gapping all over the place. The daily and weekly charts do look really nice, but the lack of liquidity is a major concern for me. I could easily move the stock with my own buying/selling power, which is not the type of situation I like to be in... 'cause if there is cause to sell, you better believe other traders will be thinking the same thing. And if I alone could move the stock with my sell, a few people selling at once (and I literally mean a few) could be a nightmare for a stock like AFOP.
Oh, and pardon me for giving myself a "hell yeah!" for highlighting X over the past couple of weeks. My Dec $25 options are up over 50% on this guy, and if phase 3 of the volatility expansion plays out like it looks to, my position will probably be up over 100% before too long. Thank goodness after my tremendous fumble on FSLR this morning! 

Though I initially noted that I would be adding to my position on a move above the phase 1 breakout high at $28.09, I am not likely to add if it breaks out today, because I generally don't like to take on a lot of new risk going into the weekend, and also because the volume, while above average, is not blowing me away. Not to mention, my position was big enough to begin with that the 50%+ growth has magically made it a pretty hefty position. If we break out in a meaningful way today, say to thirty bucks, I will probably look to be booking some profits instead.
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Bambi
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Re: Stock Update for November 4, 2011 - FSLR, RIG, X, ARMH [Re: geokills]
#15321613 - 11/04/11 11:32 AM (12 years, 2 months ago) |
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Interesting... I would have said OCZ looking the best technically with AFOP in second. I am aware of the very low volume, but i was assuming the volume would greatly increase with any break from the volatility squeeze. Basically, I'm wondering what you see wrong with OCZ's fundamentals. Also, congrats on X!
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"I want to read, talk with my friends via the computer, and enjoy my life now that people know I'm not dead. " -Rom Houben
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geokills
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Registered: 05/08/01
Posts: 23,417
Loc: city of angels
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Stock Update for November 4, 2011 - MCP [Re: Bambi]
#15321695 - 11/04/11 11:53 AM (12 years, 2 months ago) |
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The problem with OCZ is not that it hasn't been a strong stock or that it can't go higher, but that it's already run so far so fast. Since its breakout on Oct 20th, the darn thing has run over 57%! I have a really hard time buying a stock that's up 57% in two weeks, it's a prime example of chasing, which hardly ever works out well. If OCZ comes back to test $6 - $6.50, that would be the place to buy. Otherwise, I would just consider it an opportunity missed and look for something with a better risk to reward ratio.
On that note, MCP, highlighted earlier this week as a volatility squeeze, is getting really jiggy. Though I don't like to take on much exposure going into the weekend, I am making an exception and taking some bites of MCP right here at around $40. Their CEO came out today noting that they have been selling everything they can produce, and that some industries/governments are considering stockpiling reserves of the rare earth metals, which would of course put further pressure on supply, thereby increasing prices. I am involved with both the Dec $40 and the Jan 2013 $45 calls. This thing is ramping, volume will be above average by the end of the day and we are right at the top of the squeeze. A move above $41.55 will clear the first resistance level, and a move above $42.50 will put this one into blue sky territory for a bonafide phase 1 volatility expansion. If you don't know what that is yet, scroll up several posts and do some reading!

ULTA also expanding to the upside out of a pretty tight volatility squeeze. This one is in the beauty products industry. Could be a good addition as we go into the holiday season. What is particularly attractive about ULTA is that it is in a multi year uptrend and has been consolidating for some time. If it breaks above $74, it will be completely blue skies overhead -- no resistance. I have taken a small position here as well.
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geokills
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Registered: 05/08/01
Posts: 23,417
Loc: city of angels
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Re: Stock Update for November 4, 2011 - MCP [Re: geokills]
#15321996 - 11/04/11 12:58 PM (12 years, 2 months ago) |
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Because I have opened up a couple of new positions today, as a function of risk management I have sold the RIG Nov $50 calls I bought this morning for a quick 17% gain. I will hang on to the Dec $50's since they have more time on the contract and will therefore not be so volatile in the near term. To note, ULTA did mark a new all time high today, though is softening a bit into the close. Keep a close eye on this one.
I have also sold half of my Dec $25 calls on X, for a zesty 60% gain. While I've made myself a champion at avoiding large losses, one of my biggest weaknesses in trading remains my hesitation to take money off the table when the market makes it available to me. I get caught up in the greed and always want to press harder when I see things working in my favor. This has burned me more than once, so it is quite a relief to book this 60% gain on half of my X calls, because all too often, I've watched exceptional gains fade away entirely, due to my internal struggle to sell strength. This will also give me the confidence to add back to the position if we see a pull back next week, since I've built in a cushion of profits to protect myself.
All the best!
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-------------------- ┼ ··∙ long live the shroomery ∙·· ┼ ...╬π╥ ╥π╬...
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