I currently hold 16 long positions, at around 5% per position, and an 25% cash position. They are as follows: PLLL, MTSN, HGSI, BZ, FLOW, SPRD, PWAV, ABK, GKK, EMKR, ICAD, NNBR, DVAX, AHD, XTEX, and BEE. In total, I was up 4% today, solidifying my own breakout with YTD returns in excess of 155%. I sold only one position, TVL, for a 71% gain. Since I am considerably long at the moment, I will seriously make an attempt to not purchase any more stocks, at least for one day. However, if a setup looks really, really good, then I won’t just sit there like an idiot and not buy. You know what I’m saying?
I’ve noticed several characteristics with these dollar menu stocks. First, they are obviously more profitable that higher priced stocks. You can make 20% in half an hour in many cases. Second, they are more fun to watch, especially when you buy before a breakout. It gives you a margin of safety and your gains act as a cushion for your portfolio. Third, they are amazingly resilient against adverse general market conditions. Normally on a a-2% down day on the SPX, most stocks should be down. However, most of my $1-3 stocks were either up or down just a few pennies. Why wouldn’t anyone play these stocks?
The overall market is pulling back and we are in a multi-day process of consolidation. The COMP is still fighting at the 200-day MA, which the SPX, RUT, and DJIA have yet to reach. The only way the market can fully advance is if the COMP can breakout, and stay above the 200-day MA. The other indices remain within striking distance of the 200-day MA. Today’s volume was low, which is indicative of a pullback and not some scary massive selloff.
Finally, I’ve literally gotten about one e-mail almost every 5 minutes (no joke) from a whole bunch of traders. Many of you brought up some very interesting picks. I will review them all tonight. Don’t forget to follow me on Twitter.
thanks RC..most of time im taking profit with in aa day for 10%….so im taking bit more risk..im up 180% with in last 20 days…with ur help ..thaks
I am not RC. RC is my partner in crime.
Ring
You are an illiterate fucktard.
typo.RC/CA….
FLY, may be..thanks for you too….
If you were within 50 yards of me, I’d throw a football to knock your mustache off.
CA: what do you think about SIMO? Seems to be a rounded bottom formation on the 1 year chart, and both the 1 year and the 3month seem to be cup and handling…
of course their CC tomorrow is probably going to push this thing one way or the other…
CA,
Kind of a strange symbol but KV/A looks intersting. Take a peek when you get a chance.
LR
Well, I just went through my b/o list, and looks like I’m be buying even more shit today as to not look like an idiot just sitting here fiddling my thumbs. There will be even more imminent breakouts today. The dollar stock circus continues.
Yes, SIMO sppears to be primed. It’s over $3, so I won’t buy it myself. KVA is little weird, I’m not a fan of it until $1.85.
CA- Heres one for you EGT
CA,
whats your take on CRXX over a buck?? Big gap to fill..
Bought ABCW $2.02
APL? In for few shekels. Thanks for the posts CA.
EMKR -curious to see what you do with this one. unfortunate earnings miss. do you blow out of it or wait for dip buyers?
As did I, CA. (ABCW) 🙂
Bought MRGE $1.96
Sold BZ $2.50
10k more BZ @ 2.20 on the dip.
Dipping out on COIN at $2 held it a little longer than I orig wanted.
NGD ready to rip
i guess i’m too late for abcw and mrge, huh. CA you are incroyable….!
maybe not ABCW, but MRGE is out of here.
NGD great setup.
One of your cheapies just featured on CNBC. Perfect example of the pattern. (AGM)
Are any of you with me on NGD? It been rocketing today. Price target is ~$2.40
rippin’ higher homie
I thought you were holding PLLL? did you leave it out or sell it off yesterday?
oh shit, you’re right. I have too many positions.
*fixed
Thanks CA, I’m still a beginner and I enjoy learning from you and others. Then its pretty cool when you succeed with your own picks.
However, everything with gold and silver is rippin at the moment…
SPX is close to breaking out of the consolidation zone. I’m short some QID and getting ready to load some SDS and SKF. I would like to see a small bounce first to get a better entry price.
JC — any interest in a reality based stock? MON w/ a cup & handle from mid-march, making a move today.
_____
lol Jake. I will have interest after the dollar stock circus packs up and leaves town.
And nice pattern on MON.
David Tice, S&P at 400. Any takers?
CA, the market seems to be falling out of the consolidation range, what is your take on it.
Thanks again for all your help!
CA,
AHR what’s the scoop addict?
No go on AHR. It will most definitely revert back to the nearest MA.
The consolidation can take as long as it needs.
CA,
What’s your rule on breakout failures like with ABCW being back down at your entry and not taking off and sticking do you use a break even stop and go look for another stock to take it’s place?
Cheers
All,
CA will say look at the S&P close b/c of intraday flux unless we take a real big down turn (look at volume as well). Raising some cash here is a good idea. I’ve moved to 40%.
I’m letting ABCW slide, as long as it stay above its pre-gap breakout level.
Right, actually I’m thinking of picking up QID and TZA tomorrow possibly.
CA,
Everyone has to have a plan right…never stop learning.
Any thoughts on RAS and FAZ
CA:
how do you like the looks of DNN? U stocks are a joke, but this chart looks pretty. holding above all relevant MA’s after a recent breakout. upside vol on the breakout was much stronger than the downside from the correction over the last week.
Full Disclosure: I am long DNN.
Reminder to All,
Options Expiration this Friday! May 16 Actuallly Saturday
I would enter when the 200 and 15-day MA’s intersect.
I will consider iETFs at the appropriate time. I have no opinion on RAS.
CA
How about FSIN…I just got a buy stop hit @ 7.1..taking volume..
How the fuck did you catch the move in MRGE so early? Incredible!
yes more continuation
dave,
i think incredible has been the past month or so on CA’s consistent timing….unreal indeud
CA, what’s your opinion on COIN now? I know you sold out a few days back but just wondering
Son of a bitch….that’s what I think. I sold too soon.
At least I got +44% on MRGE today lol.
Keep an eye on the gold and silver bullshit plays in the next few….
NGD, NG, NXG, EXK, even shitty old CDE and HL.
______
CA, does today’s action qualify as a WTF pattern or an LOL? Are you adding the shorts (TZA, FAZ) as a hedge or are you seeing a top?
now, now CA, aren’t you being a little greedy? haha ..MRGE…damn
as for COIN, would a $3 target be out of the question?
Enig – nope
Jothar – today’s just a simple doji (indecision) day.
Got my eyes on $1-3 gold stocks.
CA,
Referring to your comment on DNN:
“I would enter when the 200 and 15-day MA’s intersect”
Just wanted to know what the signicance of the 15 intersecting the 200 meant for technical reasoning if you don’t mind schooling me a little. -Thanks
CA – Thoughts on the UNG breakout?
Yup, I love the UNG and have been playing the $1-3 gas names. That breakout is genuine and has broken the long-term downtrend, so it’s signaling a bottoming process.
As for DNN, I mean that when a stock is extended that far up, it’s going to need to rely on the moving averages even more. I would just be cautious and know that there are always better picks out there.
CA, would appreciate your feedback on ABK? very volatile for a dollar stock.
chart addict,
What charting software do you use? Do you set parameters to flag your patterns automatically, or do you have to look through all the charts individually in your universe?
thanks
I love volatile stocks.
I look at hundreds, sometimes thousands, of charts every day. Takes me like 3 seconds each.
Been holding ZLC for a few days..
Great post RC – which NG names do you like best here btw?
Also would love to take you up on that starcraft challenge 🙂
You are the 2nd person to call me RC. WTF! That’s Ragin. You can address me as CA.
I will take you up on that offer. Twitter me @WeeklyTA
Gonzo – ZLC is having a tough time with both the 15- and 20-day MA’s acting as heavy resistance for the past 10 trading days.
ops sorry – must’ve been day dreaming on that one. Will do … I’ll twitter you to set something up lol