Monthly Archives: January 2017

Down day in the market- Good price action for ZUMZ

Impressed with today’s action for ZUMZ, on a day the S&P 500 was down .6% it was nice to see ZUMZ rally 3.98%, especially the day after I added to my position. Not jumping for joy at this point, but with a bullish view on ZUMZ it was positive to see today’s bullish engulfing candlestick. With ZUMZ closing at 19.6, I have a bit of breathing room from my stop (18.2, low from Tuesday 1/24/17) and starting to envision ZUMZ approaching moving up a couple points to take profits.

1/30/17 update- bought more AOBC and NVDQ

Have been holding AOBC and NVDQ since last week. Shortly after the open today, purchased AOBC at 20.25 bringing my average to 20.62. From here, using the area of 19.89 (last week’s low) as my stop and targeting around 22 to take profits.

Also bought NVDQ this afternoon at 6.48 bringing my average to 6.85. Looking at 6.25, the low from 1/19/17, as my stop area. Still targeting around 8 to take profits.

1/27/17 update- Added to ZUMZ position

Added shares of ZUMZ on Friday 1/27/17 at 19.30 and then again at 18.95 bringing my average to 19.60. ZUMZ opened at 19.45 which was the high and had a low of 18.35 on Friday. Not loving the price action at the moment after hard selling on Friday, but ZUMZ managed to hold above the Tuesday 1/24/17 low of 18.20 which is my stop area. Initiated the ZUMZ position on Wednesday 1/25/17 after continuation through Tuesday’s high and since then we’ve seen nothing but selling pressure. Expecting the stock to bounce off the low 18’s and continue higher, but if it fails then cutting my loss and moving on.

Stock ZUMZ

3 new positions today- Long AOBC, NVDQ, ZUMZ

Shortly after today’s open I was filled on all three possible longs: AOBC at 20.92, NVDQ at 6.9, and ZUMZ at 20.4. All three were on yesterday’s watch list for displaying a bullish candlestick reversal signal, oversold stochastic and high relative volume.

AOBC- bought today at 20.92 on continuation through yesterday’s high of 20.80. Seems that there is some support around the 20 level which I am using as a stop. If it pulls back a bit towards 20, I’ll consider adding more around 20.2. Targeting 22 to take profits.

Stock AOBC

AOBC daily chart

NVDQ- bought today shortly after the open and was filled at 6.90 as the stock broke through yesterday’s high of 6.85. Especially like the high volume recently, specifically the volume spike on the gap down from two weeks ago which could be viewed as panic selling. And now large levels of buyers seen in the volume of yesterday and today’s sessions. Using last week’s low of 6.25 as my stop. Will consider adding to my position if the stocks pulls back towards that area. Targeting around 8 to take profits.

Stock NVDQ

NVDQ daily chart

ZUMZ- bought today at 20.40 as the stock broke above yesterday’s high of 20.30. Yesterday’s bullish engulfing candle looks like the stock could be reversing and indicates that it may have put in a near term low. Therefore, using yesterday’s low of 18.20 as my stop. Looking to add more ZUMZ if it pulls back to 19.30. Targeting 23 to take profits.

Stock ZUMZ

ZUMZ daily chart

Watch list for 1/25/17- AOBC, NVDQ, ZUMZ

AOBC- looks to be possibly forming a bottom, showing support at 20. Also like the good volume today along with the bullish candlestick. Interested in buying AOBC tomorrow if it can break above today’s high of 20.80.

Stock AOBC

Stock AOBC daily chart

NVDQ- looks to be possibly forming a bottom. Huge gap down and panic selling earlier this month. Interested in a potential long if it can break above today’s high of 6.85. Think it has a chance of getting back to 8 in the near future.

Stock NVDQ

Stock NVDQ daily chart

ZUMZ- especially like today’s bullish engulfing candle, a possible sign of a reversal. Interested in a potential long position if it could break over today’s high of 20.30.

Stock ZUMZ

Stock ZUMZ daily chart

 

1/24/17 Update- Sold RTK at 2.48 for +13.8%

The price surge in RTK today caused this to be a one day trade. From entry yesterday at 2.18, sold today at 2.48 for +13.8%. Bought yesterday on follow through from Friday’s session which caught my eye on abnormally high volume. Indicated on the image below the Buy and Sell levels used. RTK could definitely continue to go higher, but chose to sell at these levels because it has shown resistance here a few times in the past 30 days. Not looking to overstay my welcome on a speculative $2 stock. Satisfied for sticking to my original plan and moving on to the next trade.Stock RTK

Gearing up for PX earnings this week

Holding PX since 11/8/16, and looking to hold through earnings this week which are expected to be announced before the market opens on Thursday, 1/26/17. Interesting to note some unusual option activity last week on PX, the apparent call buying of the April 125 calls on 1/19/17 and February 120 calls on 1/20/17. This could be seen as bullish speculation as the stock would have to rally approximately 3.4% and 7.7%, respectively, for each of those option trades to be profitable from its current level of 117.39. Interesting timing for the option trades as the stock has recently been beaten down on the news of the Linde/Praxair merger which was announced on 12/20/16. Prior to that, PX had been trading in the range of 122-124 for several days in mid December. Also worth noting that the option trades were placed the week prior to earnings, which is likely to be a catalyst.

From a technical standpoint, PX has looked pretty poor since the merger news and drop on 12/20/16 but has continued to show support around 115. I am interested in holding PX as long as it remains above November lows, specifically the low of 114.43 on 11/4/16. One could make a possible bullish case for a reversal in PX in January as the stock has found support at 115 on three occasions, two of which formed bullish candlestick reversal signals- a bullish harami on 1/6/17 and a bullish engulfing on 1/11/17. Who knows how it will unfold this week and what earnings will bring. Time will tell.

SGY- A Missed Opportunity

SGY caught my eye after Thursday’s trading session when it closed at 7.10. Had a case for a potential long- bullish candlestick, oversold stochastic, and high relative volume. Looked like if it could clear Thursday’s high of 7.40 then it could get back to 8.50 pretty soon. For whatever reason, decided not to play this one. Then SGY has a monster day on Friday, at one point up over 40% and went as high as 9.95. Wow, what a fun one to watch, but unfortunately sat on the sidelines this time.Stock SGY

Watching RTK on 1/23/17

RTK closed Friday’s session at 2.16. Not usually interested in trading a stock < 5 but the absurdly above normal volume is something to take note of. The stock traded 2.4MM shares on Friday versus a 10 day average of 175k shares. That combined with the oversold stochastic and bullish candlestick could potentially bring RTK back to 2.50 in a short time. Keeping a close eye on the 2.16 level as it closed here on Friday at the high of the day. If it makes new highs on Monday, I might be inclined to buy a partial position in the range of 2.18-2.20, targeting the 2.45-2.50 area to take profits and using recent lows as a stop.