May 29th 2009
Today in the Stock Market
Dear Fellow Trader,
Thursday was good for the market as it shaped up nicely and it’s now looking more bullish as the indexes could move out of their respective channel. GGWPQ gave us a 50% return already with the move yesterday and that kind of compensated a bit for the VSTN surprise of yesterday (more on that below). Also many leaders acted very well, showing they want to continue higher, which is always a good sign.
The SPX is pushing back close to the resistance, but it has not yet been able to break over tuesday’s and Wednesday’s highs.
The Nasdaq need to get out of this channel, hopefully to the upside.
GGWPQ
As discussed yesterday this stock accelerated very nicely from our 1.21 entry, this chart looked like it was ready to soar. I received a few emails asking me what i saw in this chart to time it like that and the only thing i can answer is that it’s a few patterns that you need to recognise and i think this is the type of things we will cover in the course that will be launched in about 2 weeks. There is about 12-15 patterns i always look for.
Now VSTN was unpredictable and there really was no way to predict they would file for Chapter 11 protection thursday…It got me mad a bit at first, i did not have a full position on it but nevertheless it was a frustrating loss. (my full position would have been complete on the next strong day..) It will probably bounce back from where it is now, but one of the most important thing for a trader is to keep it’s attitude so i take my loss and focus on other things/stocks. (it helped that GGWPQ was rallying hard also).It’s like when you get a speeding ticket, do you keep moaning and groaning all day or do you put it in the glove compartment and go about your day as if nothing happened ? Happened to me often and believe me i forgot a few speeding tickets in there…The attitude is the most important thing and obviously it goes without saying that money management is also key…
SSLR will have to go back up, and if it break yesterday’s low, we are out…if not we will see if it continue up, which is still possible. We are up nicely on this one as well, we have some room but don’t want to give it all back.
UOMO is showing some green for the first time in days…not much but at least some, so i would expect a move and definitely have shares by now. It’s a great point to buy some, maybe not your full position yet. I started to average my way in.
UNCO was added to the watchlist on the 26th
http://www.hypergrowthstock.com/archives/may26.html
and made it’s move yesterday, had to be quick to get in, the entry was over 0,018.
It’s again a typical pattern of a follow-through on a first big impulse..
SNSR we need to keep watching it as it almost came back to the breakout line and could go if everything line up.
GNBT also could be a buy with this volume, but for the volume it had i didn’t see a large move up and for this stock it’s not a good sign. But it could still happen to be ok.
FIG could be ready soon. It has been consolidating in that tight range for many days, it will have to move out one way or the other soon. But the upside is where i it look the most likely to go.
AET moved as plan yesterday.
Now this one could be another mover, it’s very volatile, had a very very big impulse in April when it gapped up and i would not be surprised to see it go to much higher……
DRYS is looking also ready to go.
This next idea, require some different skills as a trader, you cannot get in this if you do not have experience, because it could still accelerate to the downside as there is obvious selling into CAL. But a turning point is imminent, a bigger selloff might be the catalyst or maybe another type of reversal, but i wanted to show it to you. And you can see the support we are approaching now…….
Have a Great Trading Day !
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