Daily Specials for 9/04 and e/r gap and fade plays

Posted by: Katsuhiro, September 3, 2012 at 10:15 pm Comments: 4

Not many plays last week for me. FSLR BPT was petty big move but I only scalped a little. I will do more “ride the rest” as I increase my share size, but for now accumulate small wins and move onto next opportunity.

I like playing e/r gap up and downs. Last week after seeing these “gap and crap”, it got me thinking. How I normally play is that I wait for opening pop(not slow grind but vertical move) then as soon I see red candle or long wick is forming, I go short. My friend’s blog explains this in more detail on HAIN s/s trade I took. http://jakestradingideas.com/trade-types/trade-type-earnings-super-spiker/

Difference between HAIN and these are obvious. HAIN gapped up huge and held gain and TFM BWS and OVTI faded all day. My core strategy will stay the same but this all day fade play can be a very nice addition and I will look more into this in what circumstance this set up works well. Maybe only when the market is moving in narrow range.. We’ll see.

They all have steady up trend before e/r. Gapped up and did not even went higher than 5min range. Seems to me pretty good r/r if you plan to hold all day.

TFM BWS are followed by bounce rally next day. Will be interesting how OVTI gonna move. Also HTZ fade after gap on 27th. It wasnt e/r.

TFM

BWS messed up trade from Tue

OVTI

High ADRs Under $5: DSCO PPHM STEM HOV EMMS HEB CUR BRD FCEL MVIS ETAK ALXA SYMX MPG ECPN ZN TEAR REFR ZLCS CHTP PPHM GERN DSCO DDMG UEC

High ADRs $5~ 20: MCP NTE APKT ROSG AMRN SRPT THLD ACHN CAD AG IMH SABA CTEL BONT MACK MCP P ROSG FSLR CRTP FB RPRX GDOT ROVI LGF HZNP PPC TNGO UBNT

High ADRs over $20: QIHU BPT BIDU CRUS PANL ZUMZ ACTG FWLT DDD

Pump&Dump Type/OTCs: ABCP STVF MXSG PSID GKNI NSPR

Under $0.1: SGGH CCAJ FRCN SRSR MJNA OTHM

TOP WATCH: ZLC NTE SRPT GERN

ZLC: hopefully this one not gonna tease up like NTE. Very nice run from 4 area. Will be great if it can pop at opening for s/s or gap down and r/g then give up squeeze for perfect s/s set-up.

NTE: looks like needs a little more upside move. Volume is somewhat low so nice parabolic move to got some attention will be great.

SRPT: probably no shares but s/s watch in case it goes para

GERN: speeding up and getting close to go para. s/s watch. Maybe 3$ area.

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About Katsuhiro

Sushifishman

Keep an eye on opxa tomorrow

Exclusivestockalerts.com covering OPXA tonight

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=79191299

katsu127

Hello Sushifishman. Not sure how good they are as a pumper but chart looks not bad on daily, Will be interesting if vol kicks in.

jakestradingideas

Nice review and trade ideas Katsu! Yes the E/R Gap and Fade plays are interesting. It seems like 50/50 though whether a stock will gap up and rip or gap up and sink. I have noticed, however, that if a strong earnings stock is up (either gaps up or rips up out of the open), if it fades it will generally do it in a linear path, i.e. straight down. While if it consolidates it will generally go higher. So I was thinking of a strategy that’s like -> get short -> hold and see how it reacts -> if fades keep, if consolidates cut, if rips higher cut. I don’t yet know if there is an edge to this strategy.

katsu127

Thank you for your reply Jake! Great to hear other traders opinion on new ideas.
Yeah I see your point. I guess it all comes down to shorting at good entry and have a tight stop. I will keep watching these type and will give a shot only if I see opening pop.