Keep Watching the Range Boundaries for BTFO, U Feel Me?

Sanguinius, Primarch of the Blood Angels

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There is a string of doji on the daily which will mark a continuation (as I’ve said many times before) to the upside, hence my long-time daily huge long exposure. The technicals continue to support further upside movement. If you don’t believe in the power of charts, then just quit trading right now. You are a disappointment in my eyes.

A nine point gap up will mark a sustained gap up. It will effectively break the market out of consolidation. It should also force short-sellers to cover, unless they want to stand outside of a 7-11 with a cup in their hand. Pay attention to the range, it’s trying to tell you something (I’ve drawn this range for you for days now, so don’t dismiss it).

I am currently up +167% YTD (and don’t forget – up over 100% for 4 consecutive years). Keep betting against me, and I’ll come visit you outside my local convenience store.

Here are more setups (don’t forget the ones that didn’t breakout yet in my previous posts). My parameters were $10-20 stocks on 1M+ volume (I don’t trade these stocks, but like I said, they are for those who don’t want to take large risks $1 stocks):

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Cypher, Fallen Master of the Dark Angels, Former Keeper of Secrets (Pre-Heresy)

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Still within the range. I put up 5-day, 10-day, 2-month, 3-month, an 8-month charts of the SPX for your convenience. Until the range is violated on above average volume, sit tight.

Sorry for the boring post, but that’s really all you need to know, so pay attention to the boundaries.

I went through charts between $5-10 with 500k+ volume. I stopped at the letter “P” because this should be more than enough. Here are the setups that I found (some may be duplicates from my previous posts):

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Here is this week’s Q & A educational post. Answers are in bold. Sorry for the delay, but I was REALLY tired yesterday.

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1) Trader Keith

a) Other than the MA’s, what are your other favorite indicators to use to find stocks that are BTFO? No indicators (I already answered this one).

b) After you enter a stock, how do you decide when to exit? Based on the candlestick? % drawdown? trailing stop? hard stop? MA? Mental stops bring in the whole aspect of emotions doesn’t it? Candlestick and/or MA’s.

c) How do you size your positions? Is your risk a certain $ or % amount of your overall portfolio equity, such as 1-5% to make sure you don’t blow up? Typically 10% per position. However, if there is a multitude of setups, I will do 5% per position and hold more of them.

d) How do you ensure you have an edge over others? remain disciplined and manage your risk? Pure discipline insures you have an edge over everyone that doesn’t have it.

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2) Jiri

a) What do you think about OCNF and PLLL? I own them both and I have to see what direction they take outside of their consolidation ranges.

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3) Dudette

a) Would love to know what you see for ILMN and OPTR. ILMN is imminent. OPTR…I’d wait for a breakout above $14.70 or a consolidation right below that level for entry.

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4) Moose

a) Any opinion on SCLD? Dangerous.

b) Is there a software that you can draw free hand trendlines on your own custom charts, and be alerted of touches via email. You already have it (your brain). Don’t be lazy.It only takes seconds to look at a chart to see if stocks touch their trendlines.

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5) Hawaii Five O

a) Since at this point, I’m not buying individual stocks,but the S&P, when you say, ” A breakout above 948 or a breakdown below 923 is technically significant to me,”Are you saying that above 948 is a continuation and below 923 is a breakdown? A breakout must clearly breakaway from consolidation without any question and it will mark a continuation in the uptrend. A breakdown must clearly breakaway from the same range to indicate reversal. Fakeouts do exist, so be aware of that.

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6) Looters

a) Sometimes, I see a stock which has been trending up nicely for weeks. Seems if I wait for a pullback before buying, it continues to run up on me. However, if I jump in, I end up buying at the top. How do you handle a situation like this? Wait for the pullback for entry. Many stocks will higher without you. In that case, move on and keep looking for setups. Don’t be a sucker.

b) I’ve read Edwards and McGee and they stress the need for the volume of a pattern to meet certain criteria along with price action. In reality, it seems to rarely play out this way. Do you give more weight to price action regardless of vol., or wait for vol. and price to both meet the criteria set by E-M. Volume plays a huge role when confirming price action. I already answered this question in the first Q & A.

(for example…an otherwise textbook H&S top where vol. increases for each rally rather than lessening on each sucessive rally). Massive volume (many times the average) mark blowoff tops and bottoms.

c) Are you avoiding stocks who are heavily involved with the government or attract a lot of gov. attention such as banks,oil co.’s, insurance,housing, auto’s etc. Personally,I hate to risk money on something that can be affected by a comment made by a bureaucrat,or a descision made for political reasons rather than being based on sound business principles. What are your thoughts on this? I will trade anything with a good setup. I have personal reservations gain auto’s and airlines (just because).

d) Any advice for someone who cannot sit at a computer all day and babysit their stocks? May want to develop a longer time frame and/or set stops on everything you have.

e) Your thoughts on SLT, HIG, BHP, HME? SLT is forming a nice flag. HIG is forming a nice symmetrical triangle. No opinion on BHP. HME appears like it will consolidate between the 50-day and 200-day MA’s for a few days.

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7) Mimi

a) Thoughts on CVM? Highly likely to consolidate between $0.55 and $0.70.

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8 ) GonzoTrader

a) VMED nice high and tight flag on the daily. I would dare to say text book? Yes.

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9) Kush

a) Have you ever considered finding a list of stocks that have ridiculously low PE ratios before doing your regular TA? They might be better for long-term trades. I don’t do fundamentals. P/E’s mean nothing to me.

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10) Deecie30

a) Thoughts on spng, synj? SPNG is nearing resistance at $0.12 and an exhaustion top is highly likely. SYNJ looks like a spiker with more upside potential, but it’s a $0.0016 stock. Are you trying to get rich quick? I personally don’t encourage people to play stocks priced THIS low.

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11) Berky

a) CA- why did you jump into PWAV late on Friday at 1.57?? I have 10m shares at 1.50 and wondering if you think it will go much higher. Something isn’t right with your question. First, when did you buy 10 million shares (as you claim) and second, if you bought that many shares, why are you asking me if it will go higher? Something isn’t right here…

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12) BeeRy

1 – How long, on average, do you keep your positions? Is there a time of day that you prefer exiting positions? I am a swing trader, so prefer to hold for several days. If a stock gains +40% or more, then I will highly consider exiting the same day. If a stock moves immedaitely against me, I will also exit on the same day. I prefer to sell closer to 4PM, since that’s when I can estimate the appearance of the candle o nthe daily chart.

2 – Out of all your picks, how often would you say you are correct. (I know this is a pretty high %age). 80%+ (on average).

3 – Do you have an entry criteria (such as an indicator or other) that you use to scalp a few extra pennies on your entry price? I don’t scalp.

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13) Lindsay

a) On your bio it looks like you started trading at 13– you told us you are teaching your niece how to trade– did someone teach you or how did you get interested? Not niece, cousin. I started investing at 13, trading at almost 18. I learned everything on my own.

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14) Ying

a) I’d like to ask your opinion about XRM, CTIC, FTK, OCNF, OVTI. I don’t know why you’re asking me about stocks I already own (except FTK). If you are a blind follower following my trades without knowing why, then stop.

b) Also would like to ask what will happen to these penny stocks if general market suddenly pullback to 925 or even lower. Each penny/dollar stock’s price action is individually determined. Most stocks follow the general market to some degree, but you have to try to find the ones that aren’t as affected by declines, but also head higher most of the time.

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15) Steve-o

a) Any thoughts on holding or playing into earnings? I generally go not play earnings unless the chart setup shows me that I have greater odds for success. Betting on a stockfor no good reason is ill advised.

b) Could I also get your take on URRE for the weekly timeframe? Looks good still.

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16) Finclyde

a) BWR.to and MAI.to. I see that MAI.to has the higher chance, by far, for a lower-rick entry for more upside.

b) Here’s a few random questions, what got you into stocks, how many followers do you have on twitter, what size of portfolio do you trade with, do you hold anything long term (dividend yielding stocks, gold, real estate, foreign currencies) or are you strictly dedicated to swing trades, you say that you read 100 books a year, which ones would you highly recommend (top ten maybe, you may have already listed these before), when’s your book coming out? Stocks became an interest just like everything else I enjoy. Twitter followers – why does it even matter? Portfolio size – larger than most people here. No long-term holdings in my personal accounts. I am a primary swing trader. What kinda of books are you looking for? My own book – I thought about it, maybe.

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17) Casino3

a) I’m still holding CTIC and bought more on the pullback. What’s your sell target?
Thanks. What’s YOUR sell target? You should already know when to sell before you buy. You are traveling without a map. My target is in the $2’s.

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18) Q

a) Do you think you could make a living just day trading and not holding positions overnight? Yes, people do it all the time.

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I’ll be in NY all weekend at the Belmont Stakes (I do not gamble, btw) and in Manhattan all of Sunday. I will be back late that evening.

We can have another Q & A session, so leave your questions below. I will also analyze stocks if you list tickers and I will make everything available before Monday pre-market.

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The Necron Race, Warriors of the C’tan gods

First, I got you all addicted to $1 stocks. You guys are HOOKED. Denial won’t get you anywhere and there is no rehab program, sorry. As you may know, I told myself that I would buy higher priced stocks. Well, that isn’t happening. I’m the dollar stock dealer, Escobar-style, for goodness sakes. I can’t quit this game just yet.

I banked major coin yesterday, nearly +6%, thanks mostly to my day trades. Just so you know, I am not a primary day trader, however, if I see a stock BTFO intra-day, well then, why should I just sit here and fiddle with my thumbs? I won’t. These moves happen really fast, so you better get on the train before it blows exhaust fumes onto your face.

I could care less about the economy or stock fundamentals. This blog is a place to make money by acting upon great stock picks that move double-digits. This is how I’ve been jacking treasure chests from pirates for over 8 straight weeks. As individuals, you sometimes have to trade unconventionally, automatically putting underperformers to shame, something that the institutions, managing and losing your 401k money, would ever understand.

The market is still range bound, so there is nothing new to add. A breakout above 948 or a breakdown below 923 is technically significant to me. Everything in between is marked as consolidation.

Anyway, here are a few setups. I looked at 400 stocks priced between $10-20 with 500k volume. Make note that these stocks are for people who don’t play dollar stocks or for people who want something more stable in their lives. Make note that most of my setup charts broke out (since I’ve started doing this 2 days ago). Here are more setups to add to the list:

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Dhar’leth, Daemon Prince of the Black Legion, Champion of the Antecanis Massacre

Make note that we are in a neutral range between 925-950. I already took the liberty to draw my boxes on the SPX charts below:

Expect a dull day. Go run some errands or something.

I am currently at a 62% cash level. CTIC remains as my largest holding and the others are: OCNF, PLLL, BZ, ACAD. I will be using my cash in the near future.

More SETUPS below (p.s. don’t forget about the ones yesterday, some stocks need more time to make a move than the others). My parameters were stocks $3-10 with 500K+ volume:

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