No one really talks about the anatomy of a melt up because we all want to be viewed as smart, clever managers who deserve to get paid obscene amounts of money. The truth is, melt ups are fairly straight forward to play and the dumber you are, the greater chance you have to bank some serious coin. Don’t act like that last sentence isn’t true–cause you know it is.
My first Wall Street gig was a sweet one: personal mail opener/slave to up and coming super mutual fund manager, Paul Wick at Seligman. I was in high school and knew very little about stocks, yet managed to beat his ass in a bet–regarding some stock that I said would move an astounding 25% in a week. I got very lucky and won a dollar.
This evening I was running some screens to understand the profile of this rally and it’s exactly what I thought.
Growth and earnings don’t mean a thing.
The vitality of the company is moot. All that matters is market cap, number of shares in the float, trading volume, and sector.
Based off this information, like any good detective of the markets, I scoured, mind you, the market for small capped stocks with less than 50 million shares in their floats. Also, the stock had to be +2% today and trade at least 250k shares in volume per day.
Lastly, I am only interested in tech, healthcare and services.
Here are the stocks, cherry picked by yours truly, that should snatch chains on the way up within a week.
ALLT
BIOD
DRWI
HTCH
INFI
PERI
RKUS
SCTY*
TSRO
XONE
SNTA
* INDICATES MY BALLS SWING LOW ON THIS NAME, MEANING I HAVE OWNERSHIP.
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