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!

Breakouts:

CMO is on the verge of breakout, this could easily fill the gap to $16.00 on a break of $13.92 (lets call it $14) which is the 200 day moving average. There is a double top around the 13.75 area. The play here is buying on the $14.00 break.

BCF is breaking its all time highs, this is well on its way towards the $20s

ENI - Amazingly bullish stock, this is heading for over $20 and hasn’t shown any weakness to this point.

Short Watch: Near Term

BEXP topping off it may squeeze through $10 but if volume dries and starts to show weakness this will test sub $9

GBRC - this one is topping off, perhaps one more squeeze towards the $4.50 range and that’s about it, this is up way to much.

The following I am looking for spikes to short on, these are all on the verge of breakout but still have another $1 to $2.00 in their squeezes, if they don’t and turn red, perfect time to short - these are not long term shorts they are just short term trades. It’s taking advantage of a price correction after a huge move higher, although they may sustain over the long period and make even more highs they still need to consolidate and filter out some of the longs. Investors/Traders end up satisfied with there enormous gains in such a short period of time and the first sign of weakness they are afraid to give them all back.

HL I’d like to see test $14

HA - this could squeeze almost to $10 before it takes a break

AAV looks very toppy today but given market conditions I’d like to see another squeeze out of it before I’m convinced theres a good short side opportunity

CLR - what a move for the longs, this may test $45 again shortly but needs a break if it’s going to hold any of these gains longer term

CF I wouldn’t be surprised to see $160 before it gives shorts some ease

BG on watch towards $130

BTU $68 I’ll start watching