Earnings season is upon us and it’s nice to see the markets hold some gains once again. U.S. stock futures rose on Tuesday, joining a global stock market rally, as aluminum producer Alcoa Inc. reported quarterly revenue that exceeded market expectations.
On the U.S. economic front on Tuesday, the NFIB Index of Small Business Optimism for December will be released at 7:30 a.m. Eastern time. Data on November wholesale inventories are due at 10 a.m. Eastern.
BPAX – picked this one up when it broke to the hod Monday because I sensed a breakout coming above the dip bounce resistance of $.548. If you’re new, I swung BPAX about a week ago for about 10% but I’ve been waiting for the big move into the gap ever since this blog post I did when it collapsed. Shares closed AH Monday night gaping on over 200,000 volume to $.55 so it looks like we’re going to be off and running today. As always, once up 10% I look for a swing exit but it the stock is strong, which I suspect BPAX will be today I don’t mind trying to stretch a single into a double. I was going to do a video but it’s very clear why I made my entry here.
LGF – this one was on my watch list Monday and in an email update midday I informed everyone I’d be buying from it, just needed to time my entry is all. We jumped in when the stock, like BPAX, broke to a hod signaling strength and more buyers than sellers. We had a nice $.20 run into the close and with the bullish futures right now this could be a gap and run as well. I play to buy 2,000 more shares at $8 or $9, whichever comes first – right now it looks like the later. Goal is to swing the breakout around $9 into the $10 – $11 range. I was going to do a video but it’s very clear why I made my entry when I did.
QPSA – been trying to bid shares as close to $3 as possible but it hasn’t been easy and I only get a few hundred here and a few hundred there. My goal is to have 20,000 shares, possible more heading into the heart of February. QPSA will report earnings with myYearbook for the first time in February and if they guide between now and the train will have left without us. There’s a very good chance the numbers beat the street and QPSA trades in the $5’s within a month. I’m looking for 10% but if QPSA rolls like it did the last time I swung it for 60% between $3 and $5 within 10 days you better believe I’ll ride the Quepasa wave again. I might even buy more than 10,000 more shares here.
USAT – earnings are Monday and right now I’d like to have 15,000 more shares heading into the earnings call. Normally on swing trades I don’t hold into earnings but USAT has become a long for me so don’t trade it if you don’t want to go long. I send 3-5 news alerts each week so there’s plenty of other ideas for you to move into. I just happen to think I’ll get $1.60 – $2 sooner or later so I’m willing to stick to my guns here – even though it’s been like watching paint dry. I’ll keep you posted if I change my mind and get out before earnings.