Just Another Sucker Rally? Or is the Bottom in?
Dec 1, 2008 Small Cap Stock Picks
Whether or not this is just another sucker rally of shorts getting squeezed or this the markets bottom and we are now going to consolidate before heading higher, the market just made a near 1100 point rally in 5 days and stocks are likely to succumb to some profit taking. The market is back in the short term overbought area and a lot of stocks just made some huge rallied pushing 100% + which sets us up for some possible shorting opportunities again.
Technically the dow just broke above its descending resistance trendline on the lightly trade black friday. Yet as of late breakouts have turned into huge sell-offs which is probable of happening this week as well. At least a good idea to bet something on this occurance. So Monday i’ll be looking to possibly fill some short positions to bank on some profit taking.
Theres a lot of opportunities but here are some potential shorts that are on my watch list.
LNC
SOLF
BGC
JRCC
JNY
DRE
hrbn
rmbs
Technical analysis of the DOW:
Technical Analysis Day Trade Review: Another Day of HUGE PROFITS FOR BLACK SERVICE MEMBERS! LVLT, MTG, HERO
Oct 30, 2008 Day Trading, Small Cap Stock Picks, Technical Analysis
It was another volatile day in the markets as every one was cautious over the FED’s announcement of the 1/2 point rate cut which we all knew would likely happen. Most often the markets sell off on news like this if it is already expected to happen and known in the market. The Stock Market discounts future events that are expected. Its the surprises that spark a huge sudden move in the market. This is known as the buy the rumor sell the news theory.
[ad#post]
We made some Big Trades today for our black service members and pulled in some big gains making this a hugely profitable week. The stocks traded today were LVLT, ARRS, SOLF, MF, MTG, and HERO. I’ll highlight some of the big winners.
Day Trading Stock Pick #1 – LVLT
I bought LVLT yesterday right near the close in hopes that we would see the breakout of the ascending triangle at $1/share today and we sure did. Unfortunately i was planning on buying some more today if price did in fact breakout above $1/share yet slept in about 45 minutues to much and missed the breakout. But at least i still caught it and made an awesome 22% gain. There was horizontal resistance around 1.20/share which is where i wanted to take profits.
Technical Analysis:
Day Trading Stock Pick #2 – MTG
Next stock we tackled was MTG which was breaking out from another ascending triangle pattern (aka: my favorite and most reliable pattern) and i hopped in and alerted black service members to go long at 2.20. Price ramped up quickly on increased volume. I took my profits quick and sold at 2.35 and 2.71 near horizontal resistance. Price ran as high as 3.70 share even! Could have made some huge money on this if you bought on the breakout and sold at the top! But thats the fantasy world, no one does that except very rarely.
Technical Analysis :
We also made a quick trade on HERO bought at 7.05 and sold at 7.32 near the close. I had some excellent looking positions in ARRS, SOLF, and MF moving into the fed announcement yet got stopped out on the volatility after the 1/2 point cut.
arrs -buy: 6.06 Sell:6.12
solf- Buy: 5.12 Sell: 5.06
mf – Buy: 3.35 Sell: 3.27
Tags: arrs, ascending triangle, Day Trading, hero, lvlt, mf, mtg, solf, stock market
