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.

Tags: EZCH, GSI, MMR, TBSI, UNS

This entry was posted on Thursday, April 24th, 2008 at 10:59 pm and is filed under NASDAQ, Plays, Recaps, Stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.