I found another reason to play these dollar stock breakouts. MRGE saved my ass from taking a -5% hit yesterday. In fact, The 45% gains in MRGE mitigated the majority of my losses and I ended the day down only -1%. Whew! My strategy now is to keep buying imminent breakouts while weeding out half my long positions. My goal is to raise at least 50% cash. There are two reasons for this:
1) I manually looked through 400 charts, like I always do every night, and noticed significant (and shortable) breakdowns in many of the cheap names. This is telling me that the end is near. The dollar stock circus is gonna pack up it’s bags and leave town.
2) I need to raise the cash to possibly buy FAZ, TZA, or TYP initially as a hedge, and possibly as full commitments if the next 2-3 days remain weak. As you can see in the 17-day chart of the SPX (below), we are pushing the limits of this pullback.
Current holdings: ABK, AHD, DVAX, EMKR, FLOW, GKK, HGSI, ICAD, MTSN, NNBR, PLLL, PWAV, SPRD, XTEX, MRGE, ABCW. BZ was sold yesterday for a +49% gain. I set my portfolio up with 5% allocations in mind for a reason. At this level, having large, concentrated positions is not smart. I can take a -20% hit and it will only amount to a -1% total loss. My MTD gains stand at 29%, so I can afford to make mistakes.
I will likely be buying and selling a lot of stocks today, cutting out the weeds and replacing them with some kind of vegetable seeds. Stay tuned.
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god damn … don’t you sleep?
Keep an eye out for XING today. setting up
Ferrari – 3-4 hrs per day.
XING is on my imminent list. You and I think alike Juice.
Thanks for the post.
Which gold/silver stocks do you have on your radar?
I’m closely following these names: ANV, BAA, JAG, UXG, EXK and FTK (oil play). I think they all have potential in the coming days.
XING looking nice for sure.
Oh, and GBG looks tasty and ripe 😛
How about GSS
CA,Are you going to add more to XTEX?? or sell here?
CDII seems to be holding 1.40 … monitor
wow, i know we don’t discuss this kind of thing here but the fundamentals on CDII are nuts…well based on what i see on yahoo at least…$13mm enterprise value and $240mm of revenue and $25mm of EBITDA…what gives?
PCCC is interesting
sorry to be so stupid juice, but what’s with the 2% spread on the bid/ask? indicative of volume?
So much for the extra buys. No purchases as of now. Too busy monitoring all these other shit.
HLYS did BO from consolidation however.
franky – yeah, i guess its a bit thin … I prefer more liquidity, so play small, if at all
bought HLYS, seems like powerful breakout on a down day.
Sold HGSI $1.82
CA – how does ENTR look to you? Played out or more to go, enough that its worth playing?
Sold PWAV $1.075
Sold half GKK $2.52
*other half $2.47
Sold MTSN $1.45
Sold FLOW $2.29
Cash at 45%. ENTR possible, has potential.
CA – planning to hold ABCW ? any stops/targets ?
sold SPRD $1.57
55% cash. Yes, holding ABCW.
shorted AFL, BYI CHDX FCFS CTV KALU FCFS MINI
need some downside protection
You got the right idea. Will add QID and TZA sometime soon.
thoughts on NGD here? gold play and chart looks good, just has to get through 200 day MA.
INTC = flat base?
yea, gold is doing just fine.
INTC- not a flat base.
got rid of emkr; seems like it should test its 50 dma which is still another 10-15% lower from here.
support on s&p is in 875-880 range (20 dma and BO support) and i think we bounce back to to 940 range (200 dma) after that to suck ppl in one last time before ending this rally.
thoughts on FAZ? just bought in.
I will be shorting on the reactionary rally following this initial decline. All sorts of iETFs broke through long-time resistance points (ex. TZA broke through 10-day, 1st time in 2 months).
Sold ABK $1.46.
Are you in TZA yet?
check out PMII
No, I will short tomorrow or whenever we have an up inside day or doji day.
PMII has a huge 8 cent spread. careful
Thanks CA
ABCW puked through all moving averages and supports – you still holding ?
ABCW MA’s are not yet breached. Some of these stocks will bounce, and then I will sell them.
k, thanks for replying..
Thanks for the updates, CA.
FWIW I dont think you can really apply technicals to these 3x ETFs – they are based on daily moves so they shouldn’t really be looked at the same way
yeah that breakouts list also served as excellent short candidates 😉
if its going to go one way or the other, its going to move …
my own shorts list did pretty well but didn’t have time to trade those today.
sold UNG yesterday, sold PAAS on the pop today.
reloaded CYNO and FEED both near the bottoms today but small weight. cheap stocks are better in small size, many of them. labor intensive
welcome, anon#2.
Ferrari – that’s correct. When are we gonna hit up Battle.net?
arth – great trades.