I put these charts together last night for you, but I was too wiped out to write anything in conjunction (I got home real late last night).
Turns out that may not have been such a bad thing. You’ll see what I mean when you see the charts.
Sometimes in the beginnings of a trend or cycle change, you can take advantage of some otherwise extremely risky pinless hand-grenade type plays that would otherwise be off limits to all but the most eyeball-sunburnt screen jockies.
I think this is one of those periods, and I’ve got two stocks for the “piker community” and a third for the Gentleman (and Ladies) of The PPT that look like apt candidates for some “follow fun.” Not coincidentally, these three stocks were all up double digits yesterday, and two of them were up 20% or more.
Keep in mind that “pinless hand grenade” is a generous description of these little buggers, for if that is an apt description of biotech, then the apt description of this sector — the “rare earth metals” — is more like “loosely wired suitcase nuke with a broken clasp.” Play very tiny if you choose to do so — for fun really, as your real meat will be carved from the husks of the gold and silver bears (Hellloooo Palo Alto!), and these should be considered nothing more than the most amusing of “amuse-bouches.”
Note that I did these charts last night… and you can see that I thought that we’d run into some pretty immediate consolidation… which we did. In fact, I thought this one would be a little bit easier as it had launched the day before off it’s 20-day EMA. I figured that would provide some good support, post consolidation (the box area), but that one might want to wait till it launches once again (as I’m almost sure it will) past that boxed consolidation zone. As I type this, QRM is trading at $3.02 with a LOD of $2.98.
Now let’s look at serious pocket rocket AVL. I figured this one would have a nice sell-off this morning, due to it being up almost 24% (!!!) yesterday, and I was not incorreuct (sic). Right now, it’s down almost 6.3% to $3.14 with an LOD of $3.11.
Yeah, right about now I’m feeling like you can just call me “Neo” and I’ll stop all the bullets and the black suit guys for you with a wave of my hand.
But that shit never lasts so take advantage of it while you can.
Best to all. PPT’ers look for #3 in the “Notes section” of The PPT.
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