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Trading Ideas

V-shape $CORN anyone?

Anyone interesting in taking a bite of a V-shape $CORN?

I’m game for it.

Take a look at the weekly chart below:


$CORN broke out of last week high and I bought in a decent size position for a possible V-shape bounce.

I like to see $CORN hit the target of $43 in the near future soon; otherwise, it won’t be called V-shape.

Below daily chart shows a decent breakout of the last 5 trading days.


Fundamentally speaking, Dry Weather and Abandoned Land Help Bolster Corn ETF.

The caveat of trading agriculture commodity is that its price action is subjected to extreme volatility due to weather condition.  On the other hand, price can stay on trend due to persistent fundamental reason.

My 2 cents.

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Finding support in $CREE

I’m joining Raul3 by buying a full-size position on $CREE today.  I initially bought $CREE on the day of the gap-down; but when price was looking to cut below $60, I dumped 80% of my holding and wait.  I’ve bought back more $CREE today because price has confirmed a support that I’m seeing in the chart.

Take a look at the weekly chart below:


The last pivot high was established in the week of 03/22/2013 at $55.66; today $CREE bounced off from the low of $55.75.

Below is another version of the weekly chart that shows the Fibonacci 38.2% retracement support at $55.61 going back to the low established in June of 2012.


Below daily chart shows $CREE is bouncing.  Potentially, if price could close at current level without giving back the gain by the close, we may have a bullish harami in the making.  Of course, price will need to take out the high of today next week to confirm this bullish bounce.


Now, take a look at the 5m intra-day chart below:


I like the fact that price action took out the upper-band of the 20 minutes opening range (grey area).  I’m watching to make sure it doesn’t break down and take out the lower-band today.  If it does, I may elect to put my stop below $55.60 at a GTC hard stop.

Good luck to all who has $CREE.  I concur with Raul3 that the technology of LED will soon replace our obsolete fluorescent and candescent lighting simply because it saves electric and last much longer.

My 2 cents.

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To sit, or not to sit–that is the question for gold dust trade

$NUGT has been on a tear since I began buying on Aug 7th.  Don’t believe me?  I had it time-stamped on twitter…


With only one day of minor correction to fill the gap on Aug 13th, price continued to march on.  While I had proclaimed I would “try” to sit on this position, the trading bug in me had me taking profit and jumping back in a couple of times since the blast-off.

As luck would have it, after taking profit yesterday at the $8.2x level with a bit of concern that I might have gotten out too soon, $NUGT opened lower and then bounced!  Without hesitation, I immediately jumped right back in to buy $NUGT at the low $8.xx.  And when the morning retracement brought the price back down to low $8 again, I added a bit more to take advantage of the retracement.  I would call today fortune of my ability to jump back in below my exit price yesterday as “lucky” intuition.

As of now, $NUGT price has broken out of the 7/23 high as I had suggested on my Aug 9th post,  Can $NUGT continue to go up from here?

I like to say so.  With the market on a correction mode, flight to safety in gold may be the next favorite trading position.

Take a look at the daily chart below:


As I began typing this post, $NUGT was still trading around the previous high of $8.57; now I could see price action continues to accelerate to the upside.  My next target for $NUGT is $12.42 (or $124.20 after 1 for 10 reverse-split).

Perhaps, I shall “sit” a little tighter now with the reverse split coming on line soon.  The split may or may not drive the price even higher.

My 2 cents.

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Finally, do we have a bottom for $NUGT?

Here is the fundamental catalyst for yesterday 25% jump on price action for $NUGT:

From Dow Jones Newswires’ Matt Day and Laura Clarke:

Data released on Thursday showed Chinese exports and imports both grew at a faster-than-expected pace in July, a sign that the second-largest economy was steadying after a first-half slowdown.

In response, the cost of physical gold on China’s benchmark exchange rose another $4 an ounce to $5 an ounce above London’s global benchmark, traders with TD Securities said, potentially a sign of increased demand there. China is the No. 2 gold consumer, and stronger growth can lift demand for gold.

The data gave “hope to those gold bugs who hope that Chinese buying will lead [prices] back to the heady heights of 2011,” said David Govett, head of precious metals with Marex Spectron. Futures hit record highs above $1,900 an ounce in September 2011.

Now, take a look at the daily chart below:


Did you see the previous big green bar on 6/28 and the one from yesterday?  Yesterday big green bar has a higher low than the one on 6/28.


Well, after the big green bar on 6/28, price began to climb to the high of $8.57 on 7/23 before correcting; this time, I like to see it breakout of that $8.57 high.

Below is the weekly chart:


Did you see the identical “T” shape weekly bar for the week ended of 6/28 and the one ending this week?

Does it look like it is going to bounce right out of the gate?

Fortunately, I bought some starter position two days ago and added more yesterday after the open.  I may add more if market open higher in the morning.  I like to see that price will zigzag all the way back to the former high.  This will allow me to hold on to my position for a lot longer.  I just need to learn how to “sit” on this position…

My 2 cents.


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Can $PACB return to its IPO price?

I’ve traded in and out of $PACB in the past with some success.  I had one big win but was stung with plenty of whipsaws due to my bad timing and inability to hold the stock with conviction; as a result, I took it off my radar until now.

From the recent earning announcement, it seems that $PACB’s Gene Sequencer has been perfected in a way that the biotech industry is beginning to take notice. For further reading on this, please click on this link.

I’m jumping back on this trade because of better fundamental and because of technical breakout.

Take a look at the daily chart below:


Did you see the persistence bullish price action after the breakout point despite the general market correction for the last few days?

Below is the weekly chart:


If $PACB’s revamped Gene Sequencer becomes the favorite in the biotech industry, we can expect to see the price climbs back to the IPO level of $16.  (Don’t need me to remind you of the Big IF here…)

I was planning to buy more from scaling down. Since price refused to go down, I had no choice but began buying when price kept on climbing for the last two days.

My 2 cents.

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Charging ahead for $ECTY

Do you know there are five different models (economical, no Teslar here) of EV from five different manufacturers? Take a look at this link.

There are:

  • FIAT 500e

Besides the above models, there are going to be more models coming soon.  Did you know that BMW will have its $40K i3 model coming to the US next year?

So, with more and more economical EVs coming into the streets, what do you think will happen to the infrastructure for EV?

I know! I know!  More charging stations!

Right you are!

Folks, you cannot avoid this trend.  EVs are coming!

Do you know that Trader Joe’s has the BLINK charging station from $ECTY in their parking lots?

Now, let’s take a look at the daily chart of $ECTY below:


Did you see the bounce?

Below is the weekly chart:


Did you see the support where the bounce is taking place?

Needless to day, I added more today for the inevitable bounce.

My  2 cents.

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2nd Chance on $ONVO

I’ve been waiting for the inevitable secondary offering to happen on $ONVO and it has finally happened.  This is considered good news to me since price action no longer has this dilution overhang that has been bursting every bubble-rallies in the last two weeks.

I bought a small starter position yesterday with a hard-stop and promptly got stopped out this morning with the gap-down.  However, when price traded down to the $4.50 offering price, I bought back my starter position plus more.  Now, I’m comfortable holding this one as a way to play catch-up with the 3D-printing stocks that I’ve missed back in March.

Why would I buy $ONVO after the dilution news?  Well, I learned my lesson from my $CLDX trade back in the Feb of this year.  I bought a boat load of $CLDX around mid-$7 and then the dilution news came.  I immediately dumped my position for losses.  Guess what?  Not only did $CLDX recover most of the price the same day, it continued onward to the $21+ level which was current price right now.  My problem with this trade was that after I was out, I resolved not to chase the stock due to my belief that the dilution would eventually kill the rally. In hindsight, now I’ve learned that it is not necessary true for every stock.  $CLDX has more potential than the pitfall of dilution.

Anyway, not to repeat the same mistake I’ve made on $CLDX, I bought $ONVO to see if my lesson with $CLDX will pay off.  Of course, risk management still needs to be applied here since this is still considered a highly volatile biotech stock.

Below is the daily chart:


Did you see price action is sitting right on the 79 sma and 89 xma?  This give me the confidence to take on this trade at the secondary offer price of $4.50.

My 2 cents.

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Cup and Handle breakout of $LRAD

From the last time I posted on $LRAD, price action has since retraced and later regained its momentum.  With more and more orders from domestic and overseas coming in recently, the $LRAD’s technology is being validated continuously.

$LRAD is now my largest position in my portfolio and I’ve no intention to take profit any time soon.  I see $LRAD is just getting started.

Below is the daily chart showing the breakout:


Below is the weekly chart showing that today price action is the breakout of a consolidation of over a year since May of last year.


There are three targets to hit after the breakout:

  • -Target 1 @ $1.78
  • -Target 2 @ $2.12
  • -Target 3 @ $3.36

I like to see them all hit before year-end.

My 2 cents.

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Land grab in California

Who want to own some dirt cheap lands in the sunshine State calls California?

If you didn’t have the mojo to buy them cheap during the 2008-2011 periods, here is a chance to pick some up thru $UCP.

$UCP was recently IPOed a week or so ago and the market cap is only $110 millions at current price of $14.20.  This is what I believe to be below the book value of the lands they own.

Let’s just say that if the book value is based on purchase price of the land in 2008-2011, what do you think these lands is worth right now?

Edit: I’ve forgotten to mention that $UCP received $116.25 million in cash (7.75million x $15) before subtracting IPO cost. Therefore, basically, current market cap for $UCP is eerily closed to their cash value right now WITHOUT their land values being factored in.  Can you spell U N D E R V A L U E?

Since $UCP has only been trading for less than ten days, I can’t present a technical chart to show trend; therefore, I’ve bought this one based on what I believe to be the most undervalued land grab in California.

Below is the daily chart for $UCP:


Btw, $UCP has an outstanding share of 7.75 million shares; how much of that do you think goes to the float?  This is the stock to buy when no one is aware of it yet…

My 2 cents.


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$INO getting ready for the 2nd gate

Last time I posted on $INO, it broke out of the 1st gate with a big bang with super-high volume.  Since then, it took a breather for a week.  Now, it is gunning for the 2nd gate.

Take a look at the weekly chart below:


The momentum is still strong by the look of it.  Price action is getting close to taking out the high from 2-1/2 years ago.

Below is the monthly chart:


If the 2nd gate is taking out, the 3rd gate at $3.40 will be the next target.

Fundamentally speaking, $INO has been issuing various positive preclinical test results based on its synergy of using its patented electroporation technology with synthesis DNA vaccine.  The implication of these results, if proven later in Phase II and Phase III trials, is that this disruptive medical technology may render cancer disease to the level of small pox, polio, etc.  In other words, cancer and  deadly influenza may be much easier to cure and control than before.

The next milestone that may either solidify or discredit $INO technology will be the Phase II Cervical dysplasia (cervical intraepithelial neoplasia or CIN) caused by HPV trial result that is expected to release in the 1st quarter of 2014.

If the trial result proves positive, we will indeud be witnessing the ultimate breakout of stock price in the history of the stock market.  Pardon my excitement.  On the other hand, significant loss can result if the trial result proves negative.  At the end of the day, it is the ultimate gambling bet.

Currently, $INO is my 2nd largest position.  I may or may not adjust my position size before the Phase II trial result.

My 2 cents.

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