In the last two days my watch list stocks have delivered big winners… but I’ve had too many positions to act on them. Yesterday I cleaned house and I’ll be trading less with a goal of nailing my biggest winning streak to date. Time to get to work and walk the talk!
Local.com ticker LOCM is a stock I won big on once already when I traded it across three days into a massive squeeze from these levels. After cashing in the first time, I jumped back in at $4.30 as a continuation play. My timing was off and now it’s back down to the $3.60 range. If it holds support here and starts to show signs of creeping up I’ll add 5k shares in the $3.60 – $3.80 range followed by another set if I gain confidence. The short position has increased and is now over 10 days to cover so if the company drops big news it’ll fly again. But I am not adding at these levels until I have more confirmation of a reversal, can’t afford to get faked out here because it could go lower. This is a short term trade for me.
I nailed INVE on a momentum day trade the other day and am looking to flip it again today after it got hammered on a Seeking Alpha article. It’ll probably sell off again this morning and then my guess is it’ll start to squeeze back up. Look at my afternoon trade from Tuesday in Profit.ly and then check the chart. This is why I rarely hold penny stocks overnight, scary right. Anyway, it’s now a good candidate for a day trade but be careful, lots of sellers and shorts all over this one so you have to be decisive and quick on the flip. Can’t toss out any goals here, it’ll be a dynamic trade with ongoing assessment. This is a day trade for me.
USAT could very well be heading into the $3.00 range now after it’s pulled back. It’s starting to turn back up on yesterday’s good news announcing a 17% increase in transactions over February 2011 and a 93% increase over March 2010. This was a previous winner for us back when I alerted it at $1.09 and now I think it could be gearing up again. It’s had plenty of chance to fall below $2.00 but it seems to keep building and now it’s forming a very solid looking ascending triangle which could lead to a big break once it creeps back up to the $2.75 range. No entry yet, but I am looking for position here and will let you know if I get in. My goal would be more than 10%… but I’ll assess that once in. This is a short term trade for me.
CNIT is shaping up to be a good day trade today. There is no large short position against it and the news this morning should bring traders back into the play. I’ll be looking for entry and exit this morning so this is a day trade for me.