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Trading Ideas

Will charging station displace gas station anytime soon?

Ok, $TSLA woke the world up by selling more EV than others even with a premium price.  On top of that Tesla is also planning on rolling out charging stations for the convenient of Tesla owners.  This is a grand plan for the future.

Whoa!  Not so fast, Tesla!  Not to be left alone, there are companies out there that are in the business of building up the infrastructure of charging station- $ECTY and $CCGI.

Now some of you may think the EV is ahead of our time and we are not ready for it.  Some even go as far as postulating that Tesla will fail at the end due to the high cost of batteries that need to run the car.  For me, I am not looking at Tesla to represent the EV market in the future.  I’m looking at the future of EV in general.  Recently, a friend of mine told me he bought a Nissan Leaf because he was offered a chance to lease the EV as a discount for participating in a government sponsored research program to study EV and its interfacing with the assigned charging stations.  In order to get the discount, he is required to charge his Nissan Leaf at various approved charging stations for a minimum of 15 days in a month.

To me, this sound like a future that we cannot avoid.  It reminds me of the time when we migrated from analog TV to digital TV.  While the conversion of gasoline car to electric vehicle may not be as complete as analog TV to digital TV, I can see a general trend of seeing more EV in the near horizon.  If this is my belief and vision; then I’ve to buy company that is instrumental in building the charging station infrastructure now when price is still low.

I chose $ECTY over $CCGI simply because $ECTY is more capitalized and listed in Nasdaq as opposed to OTC-bulletin board for $CCGI.  Furthermore, $ECTY is in partnership with the US Department of Energy on The EV Project.

Take a look at the weekly chart below for $ECTY:


You can see that price action is bouncing off the 89 xma and is heading back up.  In Elliot Wave Theory term, I say that price action is ready to embark on the 3rd wave pattern which is the longest wave in the 5 wave patterns.

For the daily chart below:


You can see that price action today took out the recent pivot high of $1.62 from two weeks ago.

In summary, in order for this “investment” to be fully rewarding, I may have to add it to the long-term portfolio along side with $LRAD, $INO, and $AMRN.

My 2 cents.

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Can $NCTY restart its game engine once again?

First, I want to thank The Fly for publishing the list of low float stocks for his readers to analyze, investigate, and research.  After looking over the list and analyzing their fundamental, I came upon $NCTY that was looking to shine brightly in the 2nd half of 2013.

Take a look at the weekly chart below:


The first thing I want to see is the possible V-shape correction to the upside simply because last week bar was a bullish green bar with volume higher than the last five weeks.  This tell me that this week can be very bullish if the momentum continues.

Now take a look at the daily chart:


Yesterday green bar was a good sign for a bullish week.  Since I only discovered this stock late Monday evening, my plan was to buy $NCTY if price did not drop like a rock in the morning.  It did not.  Thus, I went in and bought a decent size position thanks to the big ask that happened to be available in this small float stock.  The stock god favored me this morning.

Fundamentally speaking, back in mid-2007, $NCTY was riding on a $50 stock price when its game “World of Warcraft” was raking in millions.  After their WoW license expired in 2009 and with the money they made from WoW, they put it all back into new games that took them four years to develop.  Fast forward to 2013, $NCTY is about to launch these games in 2nd half of 2013.  By Jolly, it is about now!  You can find out more information by clicking here.

I see the risk reward on this stock as excellent and that was why I jumped on to this opportunity without hesitation.

The Fly has been offering support to traders of all level for many years by showing us the doors to many opportunities, it is up to us, the traders, to investigate the doors to see which one fits our trading plan.  Thanks to The Fly again for publishing the low float stock list.

My 2 cents.

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Uranium is back!

I believe the election result from Japan last Sunday is the reason for the uranium kick-off today.

Unfortunately, I did not have any $USU on me so I missed the 156% phenomenal increase.  However, there are others that are likely to catch up pretty fast- mainly $DNN.  $URRE has already moved 21% today so I’m not going to chase this one.

Chartwise, $DNN is breaking out of the downtrend line with super high volume.  Thus, I bought $DNN today instead of the others.


My 2 cents.

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$WG- Breaking out of the gate

With oil ($UCO) being up so much since the beginning of the month, it is a matter of time before oil service company such as $WG breaking out to play catch-up.  Today is the day $WG kicks off the starting gate.

Take a look at the daily chart below, today breaking out of the last week pivot high kicks off the start of wave 3 of the Elliott Wave Theory.  According to the theory of Elliot Wave, wave 3 is normally the longest wave of the 5 waves pattern.  Therefore, I expect today price action will zigzag all the way to previous high of $10.45 or more.


Needless to day, I bought $WG when price action took out last week high.

My 2 cents.

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Can we play 3D catch up with $ONVO?

How many missed the $DDD, $SSYS, $PRLB, $XONE run when we had a chance to buy in mid-March but didn’t?

$ONVO, a biotech 3D, has recently been uplisted to NYSE; therefore, it is no longer an OTC bulletin board stock.  This mean all the big guys (institutional and mutual funds holders) can now buy this stock.

$ONVO has two beta-risks lumped together- biotech and new technology.  If this technology and biotech show any hint of proof of concept to create 3D human organ parts for replacing our diseased organs, this company will leave $DDD, $SSYS, etc in the dust.  On the other hand, be prepared for further dilution from secondary offering when money run out in the future.

I believe the weekly chart below is sufficed to show you the breakout pattern.


I bought some today and added more when price continued higher.

My 2 cents.

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Is $CUR leading the stem cell miracle?

Price action seems to suggest it.

Take a look at the daily chart below:


Today price has finally broken up to the upside.

However, take a look at the weekly chart below:


There is still another hurdle for price action to take out and that is the resistance established back in June and July of last year.  And if today momentum continues on this week, it will be like cutting butter with a hot knife.

Fundamentally speaking, I’ll let you read this article and ponder.

Yes, I’ve already placed my bet on this one.

My 2 cents.

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Is $INO the ultimate breakout play?

I’m betting that it is.

Let’s start with the weekly chart:


Last week breakout bar had massive volume of 23 million shares; while the inverted hammer candlestick of last week was not convincingly bullish; this week up bar clear up last week indecision.  Today is only the 2nd day of the week and volume has already exceeded half of last week.

Below is the daily chart:


The uptrend looks more straight forward than the weekly chart since you are not looking at the inverted hammer candlestick bar.

The monthly chart below gives you an idea of the possible resistances and potential of future price action.


Did you see how price action has finally broken out of a 2 years consolidation period (from mid-2011 to now)?  Remember the old saying, “the longer the consolidation period, the more powerful is the breakout?”  Does this old saying apply to $INO?

I’ve placed my bet that $INO can be the mother-of-all biotech speculation with a high reward/risk ratio at this level.

Fundamentally speaking, $INO is pushing synthetic DNA vaccines into the new frontier of biotech discovery.  $INO has come a long way in researching on this field and 2013-2014 may be the years of acknowledgement that this science actually works (or not).  So far, the data are encouraging; however, the caveat is that these data are from preclinical and Phase I results.  Between now and 2014, results from various Phase I to Phase II trials will either propel $INO to much higher price or send it back to oblivion.

The risk is high and so is the reward.  If there is such a thing as mother-of-all biotech speculation, this is it.  And this is definitely not for the faint of heart.

My 2 cents.

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Is $ATRS ready for a Cup and handle breakout?

I believe so.

Let’s start with the weekly chart:


Did you see the general long-term uptrend?  However, I like to see price action takes out the Jan 11th high and close above that to confirm a continuation of uptrend after the correction from July of last year.

Now, let’s take a look at the daily chart:


Did you see the handle?  While the handle is still lower than the rim of the cup, I still think the pattern is valid.

Fundamentally speaking, who doesn’t like a needle-less injection?

$ATRS announced acceptance of the OTREXUP New Drug Application (NDA) by the FDA.  And the FDA has assigned a prescription drug user fee act (PDUFA) target date of October 14, 2013.

The speculation of an approval could fuel a run from here.

I bought $ATRS today looking to see a breakout from the cup and handle pattern in the next few days.

My 2 cents.

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Can $LYV keep the party going?

What do young people do when they don’t want to stay at home?  Go to the movie?  What do you do after two hours?  It comes to my attention that these young people like to go to concerts- lot of them.  And this is where $LYV (Live Nation Entertainment) comes in.

With more and more children come of age to become teenagers and 20+ young adults looking to get out of the house, concert businesses are expanding.  You can see the trend picking on $LYV from the monthly chart below.


Keep an eye on the resistance at $16.90 – $18 level; if price action can take out these long-time resistance, price may not look back.

Needless to say, I bought some $LYV and added more today with the expectation that price action would break out of the $17 -$18 resistance.  Time will tell.

My 2 cents.

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The wakening of $LRAD

For those who has followed my blog, you know that $LRAD is my second largest position in my portfolio.  After months of waiting, I believe my patience is finally paying off.

Today price action reflect a big up day with high volume.  Since I’m holding this for long term, I like to think that today action is just the beginning.  Future catalysts for more higher prices can be the “winning” of contract order from US Army, foreign sales to China (don’t you think China will need this technology to address their massive population?) and other countries who will soon find usefulness for LRAD technology.

The multi-charts below give you a better feel for the overall picture.


My 2 cents.

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