Today's market was mostly dull except for some thinly traded volatile day trading vehicles. Tomorrow looks like more of the same as everyone is gone, but probably until next Monday when the real big money rebalancing starts to occur. Here are some stocks I traded today:
BORN had a clean breakout on big volume, but dove down at the end of the day. I am holding overnight for a hopefully quick exit in the first hour. I want to be flat going into the new year.
MONIF Great story led by Leon Cooperman and then Doug Kass. I've been in and out of MONIF since $.50s. I anticipated the last breakout when Cooperman reiterated his 9.5% position and said he was looking for a five bagger. After the breakout, the stock made an amazing spike which I sold at $1.28. Then the stock pulled back. Interestingly, London was closed for two days as the stock ran up in the USA. So in London MONIL played catch up to the USA at the end of last week. But the dust had settled and last night MONIL was up nicely in London and that was enough for me to go for MONIF after it's pullback. I don't expect fireworks now, but I love the story.
NQ Muddy Waters, "The Hoochy Coochy Man" caused chaos in this stock in late October with his allegations of financial shenanigans. Today Morgan Stanley countered with a 5.5% purchase of NQ. With that vote of confidence, NQ made a nice bounce. However, NQ needs to do some more work. I'd like to see it clear today's high and then the $15.32 high made on 11/01/13 after the crash.
I want to see big volume and the breakout hold on a closing basis. If not It is strictly day trade material. I also see the symmetrical triangle, which is a low probability almost useless pattern IMO. The stock probably needs more base building and an upturn in the 200 day moving average. Plus a complete undoing of the bad allegations.
SOME SET UPS Here is a handful of companies with great stories and nicely developing charts. The key is not to buy unless the stock tells you to buy it. That means to only buy on a breakout or anticipating a breakout if the stock starts to move on big volume and news or a strong market. The beauty of a set up with price alerts is that if nothing is ventured, nothing is lost. If the stock does not pop, big deal. There are plenty more fish in the sea. An alert at a reaction high within a pattern may be used to anticipate a breakout if the circumstances say that there is a good chance of a break out over the highs. Again, the closing price determines whether or not a stock brakes out.
AAPL Nice consolidation as AAPL is hopefully back in motion. It will never have the growth it had with Steve Jobs again, and is now faced with a Moore's Law type of competitive situation as it strives to stay ahead of the pack. I prefer trading in the money AAPL options because they trade just like a stock and give great bang for the buck.Set your alerts at $571.90, just above the recent reaction high and $575.15, just above the seven month high.
BAC Another financial that is leading the group. Just set your price alert at $15.88, the recent reaction high, and then $15.99, the all time high. Starting volatility squeeze .
CSIQ This is the best of breed solar stock in my opinion. It is going through a nice consolidation, is cheaply priced and has great growth all over the USA, Canada and especially China & the Far East. I think this is a secular growth story. Another great volatility squeeze - see those Bollinger Bands. Set your alerts at $31.83, just above the recent high and $33.27, just above the all time high
MU If its good enough for Einhorn, it's most likely good enough for me. It seems like his view makes sense. It is a great growth story because MU has most of the production capacity in the industry until competition comes on line with factories in 2016. MU has pulled back and is consolidating it's gains very nicely. I think that MU will eventually breakout to new highs. Set your alerts at $22.57 over the reaction high within the pattern and at $23.68 over the all time high.
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