Recap: Tuesday Nights High Flyers and Potential Shorts
A brief recap of last nights scan before I post tonights.
Overall most of the stocks did exactly as their chart said. You can view all tickers here: BEXP KOG PDO ENT DGLY EXM ICO SCA MMR WMG
EXM - although it didn’t fall immediately, this is a great example of the “gap and crap” I mentioned last night. It had a lot of momentum going into Wednesday’s open gapped up (opened higher then its previous close) and squeezed $2.00’s before it began its sell off. From what was up $4.00 at one point today came to within +.50 on the day. I’d expect the selling pressure to continue for at least another day before it starts to look for support.
MMR - still worth watching like a hawk. $28.00’s held for most of the day before the EOD (end of day) sell off. I’d watch for it to break $28 again since this appears to be extremely strong but if it cant break this can correct to the downside for $1.50-2.00. I’d personally like to see it test a bit higher before shorting.
ICO sold off 8% and is down an additional 8% after hours on a wider quarterly loss reported.
PDO from last night:
“PDO - very thin not worth it to take a big position. I would watch for the test of $7.00 again before shorting. This is one of those stocks that could wash out to $5.50 and immediately recover to the $6.50’s leaving shorts confused and before you know it … its double digits.”
PDO tried to test $7 again today… failed… and started its downtrend. This could wash out (dip heavily knocking out lots of stop losses causes more of a move than anticipated) but watch for it to quickly regain its composure once it hits bottom. This has not traded many shares for a Nasdaq stock and can move in both directions rather quickly. If you did take a position today based on the comments from yesterday.. keep an eye on Tim Sykes, he is trading it and can be helpful to those looking for an in depth analysis on who, what when where and how.
It’s good to keep an eye on the charts from previous post because although they may not play out as anticipated the day of … within a few days most of these have had a nice downside move. GNVC has sold off to where the first anticipated support level is, watching for consolidation this may turn the jets back on and head towards higher highs, but first it has to confirm its at bottom.
April 24th, 2008 at 10:40 am
[…] 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 […]