Wednesday’s scan played out EXTREMELY well. The first three stocks on scan, GSI, UNS and TBSI turned out exactly as anticipated.

Starting with GSI, it didn’t break the $11s like I figured it may out of open but it did attempt too, managed to get to $10.87 ….. following that it took an immediate drop of about $1.30. The target cover was around $10 anticipating it may find some type of support there and attempt a bounce (since we are traders and we are only trying to get the quick drop and not marry the stock) but it didn’t even flinch and went straight to $9.50. It did recover over the course of the day but the easy part is over. I wouldn’t be surprised to see this at $9 by next week but I’m only in it for the easier technical trade, its rolling the dice if you stay in, could squeeze back towards $11.

TBSI was a perfect short out of open - it walked down $4.00 right away before coming back $1.00. It’s possible that it continues down but again, its a guess. The more obvious trade was the correction after the squeeze/stop loss profit taking that happened today out of open, not really worth shorting anymore more likely a long if it dips another $2.00s.

UNS - played out EXACTLY as anticipated (wow!). This was a perfect example as to why you should only take a partial position until the stock confirms it’s going in the direction that you want it to. UNS attempted to break $33 multi times, it did, it traded above it but finally topped out and started its downtrend. When this bounces intra day it goes up on hardly any shares at all, when it comes down a lot of shares are exchanging hands. What is this important? Although its chart is completely over extended - there is still a lot of buying interest. Tomorrow if it breaks $32 I would watch for the fall back under it to see if it continues its downward trend. It may be another ‘gap and crap’ style play. This does have a gap to fill around $30 so there is still plenty of downward potential and pressure that may come towards that level. Be cautious if it begins to squeeze again and don’t feel bad about taking a profit.

EZCH a great example as to why we let them find their tops first before guessing about it, this is back on watch for Friday. More on this later.
MMR had a nice dip of $1.00 out of open but battled back immediately and closed green, a sign of longs being in complete control. This will be on watch for Friday as well. More on this later as well.

I hope you’ve found some of this weeks plays profitable. EXM is down near $4.00 from where it opened.. this is a text box “gap and crap” as explained in the last post. MMR is down just over a dollar, it still has a way to go.

TBSI is down over $4.00!!!
GSI down about a dollar! Right past our $10 dollar target to cover

UNS is squeezing over the $32 dollar mark. $33 dollars is key here, it can either break it and spike or it can jumble around just above $33 before losing steam and falling back under. Watch for any .50 cent spike to short on if it does squeeze over $33. The best strategy (the one I will use) is see how it reacts once it breaks $33 on the dip back under it, if it doesn’t break it again, odds are in your favor.. (Similar strategy to KOG join the weakness, don’t throw a dart guessing at the top)

Watch it like a hawk from here on out. If it loses $32.50 profit takers will start to come in by the masses hoping to by it back $3-5 dollars lower.
UNS is currently at $33.03 as I right this post, looks like a top is being put in BUT has not yet been confirmed. It’s always a good strategy to take a partial position whenever enter your trade on plays like these, worst case you are wrong and you only lose a percentage of what you would have if you dived right in! You can always add to your position once it has been confirmed. For example (on UNS), it may want to test $33 dollars a few times before it decides to top off, or…… it may break it and sprint to $34 (in which case you’d look for a .50 cent spike as mentioned above). This can have a $2-3 dollar downside potential over the next two days IMO (in my opinion). As far as downside and when the steam will pick up, if $32.50 breaks its possible to knock out a few stop losses and see a quick move towards $32.25 - if this happens the magnet will intensify at $32 and probably end up there by end of day. Good luck and don’t forget to take profits!

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