Late Night Strategy for Tuesday

BgnTqNlIgAEYyRJ.jpg-large

In light of the BAGL buyout in the casual dining space, let’s keep Fiesta (FRGI) on watch on a long idea.

Of course, beyond the prospect of a buyout is a sound technical setup, seen on the first daily chart, below. On further strength I like the idea long.

And on the short side, AmEx still has my eye on weakness below $87.

Drop me your top tickers overnight.

_______________________________________________________________

FRGI

_______________________________________________________________

AXP

 

A Good Technique for Trapped Shorts in $GPRO

QuicksandBearGrylls640

As a reminder, something I have been preaching in a while is that in a bull market I focus almost exclusively on liquid, non-heavly shorted, large firms unlikely to get bought out. Now, when we see a confirmed bear market that strategy changes.

However, in the case of GoPro you have the full recipe for a violent squeeze–Low float, heavily-shorted, potential buyout target, hated concept, new-IPO.

Be a sniper short in a bull market, not a sheep in the infinity.

See you after the bell for my video market recap.

Manufacturing Runs

Juan Pierre

I took off a piece of my UGAZ (triple-levered long natural gas ETF) just now inside the 12631 Trading Service, at $16.41 from my $14.95 entry. I discussed the thesis and trade on this blog last week and over the weekend in my Strategy Session.

I am up nearly a quick 10% on it since my entry last week. So, I elected to trade around it and lock in a win for part of the position, especially considering the whippy action in equities today.

I suspect “manufacturing runs,” or winning trades in lieu of home runs, will become (if it has not already been) the name of the game this autumn.

Headed into the final hour, I still see some small cap weakness as a drag on the tape at-large.

Walking the Narrow Line

ruZtA29

Here is an intraday look at the small cap ETF, which is instructive given the wild price swings we have seen since the pre-market futures session.

On the 10-minute chart, below, note the narrow price range since roughly noontime on the east coast.

I am looking at a $110.50-$110.75 range.

Elsewhere, some nice moves in commodity-land have my eye. I am already long natural gas, but am sweating wheat, sugar, coffee, corn, and perhaps crude and the metals.

Drop me your top afternoon ideas.

_______________________________________________________

IWM

Five Stocks Not Rolling Snake Eyes Today

nGQKQMT

Courtesy of The PPT algorithm, here are the most current top five readings from my “12631 RELATIVE STRENGTH” custom-made screen, identifying which stocks are exuding some of the best performances to the market at-large at any given moment.

I look for stocks whose Daily PPT Hybrid Score surges, while the Weekly Hybrid has been negative over the past week. This can often yield stocks which are emerging from consolidations.

Members can click here to view and save the screen.

Sorted for at least 500,000 shares of daily average volume to ensure liquidity.

Please click on image to enlarge.

________________________________________________________________

2014-09-29_1242

 

An Old Speculator’s Dilemma

JbDwJ92

For the old school types who believe that the credit market guys are more rigorous and know better than their younger, dumber cousins in equities, again consider the weakness in high yield corporate paper and junk.

We have been thwacking their derivative ETF’s for a while now, and the persistent weakness.

On the updated daily charts, below, note the mini-crashes of late, with nary a day in the green for weeks on end.

Even this morning, with a gap lower in equities being dipped, and GPRO trading in its own planet squeezing shorts into another galaxy, they remain red.

I am flat equities here, focused on a natural gas long.

But if we see stocks roll back over this afternoon I will have more conviction shorting again given the real weakness in high yield corporates and junk.

___________________________________________________________

HYG

__________________________________________________________

JNK

Late Night Strategy for Tuesday

BgnTqNlIgAEYyRJ.jpg-large

In light of the BAGL buyout in the casual dining space, let’s keep Fiesta (FRGI) on watch on a long idea.

Of course, beyond the prospect of a buyout is a sound technical setup, seen on the first daily chart, below. On further strength I like the idea long.

And on the short side, AmEx still has my eye on weakness below $87.

Drop me your top tickers overnight.

_______________________________________________________________

FRGI

_______________________________________________________________

AXP

 

A Good Technique for Trapped Shorts in $GPRO

QuicksandBearGrylls640

As a reminder, something I have been preaching in a while is that in a bull market I focus almost exclusively on liquid, non-heavly shorted, large firms unlikely to get bought out. Now, when we see a confirmed bear market that strategy changes.

However, in the case of GoPro you have the full recipe for a violent squeeze–Low float, heavily-shorted, potential buyout target, hated concept, new-IPO.

Be a sniper short in a bull market, not a sheep in the infinity.

See you after the bell for my video market recap.

Manufacturing Runs

Juan Pierre

I took off a piece of my UGAZ (triple-levered long natural gas ETF) just now inside the 12631 Trading Service, at $16.41 from my $14.95 entry. I discussed the thesis and trade on this blog last week and over the weekend in my Strategy Session.

I am up nearly a quick 10% on it since my entry last week. So, I elected to trade around it and lock in a win for part of the position, especially considering the whippy action in equities today.

I suspect “manufacturing runs,” or winning trades in lieu of home runs, will become (if it has not already been) the name of the game this autumn.

Headed into the final hour, I still see some small cap weakness as a drag on the tape at-large.

Walking the Narrow Line

ruZtA29

Here is an intraday look at the small cap ETF, which is instructive given the wild price swings we have seen since the pre-market futures session.

On the 10-minute chart, below, note the narrow price range since roughly noontime on the east coast.

I am looking at a $110.50-$110.75 range.

Elsewhere, some nice moves in commodity-land have my eye. I am already long natural gas, but am sweating wheat, sugar, coffee, corn, and perhaps crude and the metals.

Drop me your top afternoon ideas.

_______________________________________________________

IWM

Five Stocks Not Rolling Snake Eyes Today

nGQKQMT

Courtesy of The PPT algorithm, here are the most current top five readings from my “12631 RELATIVE STRENGTH” custom-made screen, identifying which stocks are exuding some of the best performances to the market at-large at any given moment.

I look for stocks whose Daily PPT Hybrid Score surges, while the Weekly Hybrid has been negative over the past week. This can often yield stocks which are emerging from consolidations.

Members can click here to view and save the screen.

Sorted for at least 500,000 shares of daily average volume to ensure liquidity.

Please click on image to enlarge.

________________________________________________________________

2014-09-29_1242

 

An Old Speculator’s Dilemma

JbDwJ92

For the old school types who believe that the credit market guys are more rigorous and know better than their younger, dumber cousins in equities, again consider the weakness in high yield corporate paper and junk.

We have been thwacking their derivative ETF’s for a while now, and the persistent weakness.

On the updated daily charts, below, note the mini-crashes of late, with nary a day in the green for weeks on end.

Even this morning, with a gap lower in equities being dipped, and GPRO trading in its own planet squeezing shorts into another galaxy, they remain red.

I am flat equities here, focused on a natural gas long.

But if we see stocks roll back over this afternoon I will have more conviction shorting again given the real weakness in high yield corporates and junk.

___________________________________________________________

HYG

__________________________________________________________

JNK

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