As I had mentioned before it’s not always the next day that the scan plays out. Most of the charts I post are up over 30-40% in just the past 10 days alone. Note how they’ve squeezed, topped off and corrected.

The two previous scans with the most charts can be found HERE and HERE.

MMR - Three failed attempts to break higher than $29 and change (-$2.00 correction)
EXM - Four failed attempts to break $45 dollars (-$5.00 correction)
JRJC - After the squeeze to short on detailed in this point (-$3.00 correction)
BEXP - Double top at $10 - unable to break ($-1.00 correct)
HL - After a failed second attempt to break $13 ($-3.00 correction)
CLR - After a squeeze Monday $1.00 after the mornings dip ($-5.00 correction)
CF - Unsuccessfully breaking $160 after a multi month squeeze (-$29.00 correction)
BTU - After the quick squeeze above $70 - the breakpoint and failure it’s base ($-10.00 correction)

This is not a “I told you so” style posting. AT ALL. This is to show that yes it does work, we wait for the pattern to play out, you need to focus on break points (previous highs, psychological, 52 week highs, double/triple tops etc.) and watch for weakness. Additionally it’s worth watching for spikes. I tend to watch for a spike of .50-1.00+ to short on, normally if these types of squeezes happen (or even a multi dollar squeeze) this signifies a “blow off” to the squeeze which you need to take advantage of. Many would argue that shorting is the riskiest thing to do since you can lose everything… but I’m not suggesting going short for a long period of time, you are simply taking advantage of an over extension.

As I mentioned in last nights blog, it might be time to buy after some of these consolidate, after all in most cases its healthy to have a pull back. Get the traders out, those happy with their short term 30-50% gains (as I said most scans are up 30-50% in 10 days), shake out the weak and bring in a new batch of longs taking a position for the longer term.

I will have a scan for tomorrow (Wednesday) shortly!

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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Scan: GSI UNS TBSI UTEK CRYP EZCH

GSI wants 11 bucks, plain and simple. Looking at the intra-day chart today, it was a slow and steady move up all day. Longs are most definitely in control BUT it was $7 three days ago. My strategy for GSI is similar to what I was watching for on KOG and EXM. It clearly wants to make new highs but I’d rather the top be put in for me and short the weakness (such as this $11 mark). So what does this mean? I’d like to see it test $11 - if it breaks it squeeze mode is still on and could pop another $.50 to $1.00. BUT-lets say it goes to $11.15-11.20 and starts selling off towards $11. I will short on the downward break of $11 with a target cover around $10 and change.

UNS is in complete squeeze mode looking for $32.00. This is another slow and steady intra-day (this is important to note because if the longs continue to stay in control you’ll find yourself adding and adding to your short position with no top in sight.) Strategy here is similar to EXM looking for it to “gap and crap”

TBSI - It’s trying to break $45 but failed today and fell back almost identical to EXM. I’d be looking for another bullish move out of the gate - one last attempt of the bulls to keep this move going, but the move has been fairly large for a $30 dollar stock less than a week ago. This doesn’t mean it won’t go to $50, I’m only in it for a trade when the technicals are a bit overextended. It needs to consolidate near $40 creating a new base before it heads higher. If it does open a bit higher there is a potential for a $3 to $4 dollar short here.

UTEK consolidated around $13 and managed to burst through $14. Up nearly 60% despite the profitable quarter and upgrades it needs to consolidate a bit more before these gains will hold. I’d look for it to retest the low 13’s before moving to $16+.

CRYP one of those stocks where $20 is a magnet, a key break and a key support level. I think this will test the mid 18’s on a breakdown through $20.

EZCH beginning its prowl towards earnings on May 5th. Up 40% in less than a week. If it doesn’t break $14 its a short, if it does break $14 I’ll watch for the squeeze and let it confirm a top. $15 is a lot of resistance. I will post more on this as it plays out.

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From the earlier post today MMR and EXM are still very much in play, MMR may have $2 more in upside (if that) before a $2-3 dollar correction. EXM may gap past $45 in an attempt to save it, and sell off through the day.

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.