Point and Figure Charts

Hi again,

as usual, we will look at our stock picks from last week. First we have our "horror"trade EXP. It did not turn out to be what I expected. So, you should be out of this option trade. It might climb again - but I doubt that it will make the 45$ within the next two weeks. These days I am trying to digg into the Point and Figure charting. I never used it and I really don´t know much about it. Anyhow, I read a bit and, using a 3box reversal chart, box size 1,5%, would result in the price goal of 44.57$ - if it should rise. This is pretty close to our 45$, but not close enough. Here is my first P+F chart:
Next one: CWTR - did it close the Gap? No! Instead it was sold at 27.80$, leaving us with a loss of -2,1%. But, it still looks promising... Oh well.

Here are some new ideas:

1. ORCC - last price was 10.33$. We have a nice hammer, but my SL is at 10.15$, a little below the PivotPoint. First target at 11$. The chart:


2. Another hammer on CXG - this time to go short. Last price: 26.58$, first goal: in the area of 23.90$, SL at 27.60$. The chart:


3. WGA - last price: 3.85$, SL at 3.55$ (4week high!), first target: open. Nice chart:


Good luck,

The Stockinvestigator

Fading the Gap

Hi again,

another week passed by without any post. Well, this time I was ill - a flue. But anyhow, our last trade did not turn out to be what I expected it to be. EXP is below the price I adviced and our option EXPLI lost -42% so far, currently at 0.55$. That is way too much - and I would be out of this trade for sure - but somehow I still believe in it. Let´s see.

Today I just have one stock to advice: CWTR. It gapped down yesterday - after this news (quoted from Minyanville):

Coldwater Creek (CWTR) said third-quarter net income rose, as revenue gained, to $15.9 million, or 17 cents a share, from $10.5 million, or 11 cents a share, during the same period in the prior year. The apparel retailer said quarterly revenue rose to $256.4 million from $186.8 million in the prior year.

Last price was 28.40$. In the past, CWTR closed the gaps nicely, so I expect a safe win. SL however will be at 27.80$ (below Pivot). Target: 30.12$.

Good luck,
The Stockinvestigator

Call on EXP

Hi again,

it has been quite a while, I know. But hey, did I mention that I am short of time? Anyhow, last Friday, STAK reached my target of 5.92$, a gain of +4,6%. Perfect!

Now, today I would like to comment on a new idea: a call on EXP. I used the Darvas-Box-System to find this trade. Last price was 42.28$. I expect it to rise up to the area of 50-51$ (olive line) within the next month. Calls on EXP however only go up to a strike price of 45$ (bright green line). Ok. Then we will buy the December Call EXPLI. Last price was 0.95$. I expect this trade to take off within 10 days. No more picks today - right, it is the missing time. Here is the chart for EXP:


Take care and God bless,

The Stockinvestigator

No time...

First of all, I have to say a big sorry! I just could not fin dthe time these days to comment on my last picks. But now I will review them:

1) FONR - just on the first day it opened with a gap, at 0.25$. It then closed at 0.28$. However, we would have not be in the trade due to these circumstances. After that the stock rose up to 0.30$ (current price), which would be a 3,45% gain. However, I will not count this trade - mainly because we would have not be in it. This topic brings up another importnat question: which conditions should be accepted to get in a trade? What are the criteria? Well, this is one point I like to change in this blog - I want to describe the trades more detailled. However, I can not stress it enough, I am missing time right now. So, all I need from your side is a little patience.

2) STAK - it also lost the first days - however, our SL at 5.50$ did not break. Currently STAK is at 5.83$ - a gain of +3%. I still see it climbing - but as usually, I would not hold it over the weekend.

More next time - take care,

The Stockinvestigator

TradingIdeas IV

Hi again,

well, first of all, let´s take a look at last weeks open pick: MEH. About the direction of the stock I was right, upwards (currently: 8.44$). But, on Friday we had a "long-range" day - which resulted in a loss for us, since we got stopped out at 7.60$. So, MEH gave us a -5% loss, while it actually made 5,5% plus since my advice. Too bad.

New let´s look at new opportunities. As usually, I am lacking time and I am not amused about that fact. I would love to spend more time on writing this blog - but these days I just don´t have this time. So, either Istop this blog or I just comment shortly. I will do the last. But, as soon as I will have time again, I will work a little bit on the concept of this blog. Here are my ideas for today:

1) For all the Penny Lovers (I usually avoid pennystocks...), here might be a good opportunity: FONR, last price was 0.29$, SL below the PivotPoint at 0.27$, first target is 0.35$, giving us a CRR of 3(!). Just remember that it is very risky to play this stock - but since we have a good CRR, I added it here. This is the chart:



2) STAK, last price was 5.66$, SL at 5.50$, first target is 5.92$, CRR = 1,6. This stock was filtered by the idea that different MA diverge together, which usually indicates a point of "explosion". Let´s see, here is the chart:



Possible Optionplay:

ADM - should be ready for a PopUp now, last price was 43.32$ - time to buy calls!

To all of you out there, good luck today!

The Stockinvestigator

Staying in...

Hi,

MEH lost -1,37%, closing at 7.89$. Not what I expected - but, we will stay in this trade - it still looks promising. The SL will stay the same. That is all for now, have a nice weekend,

The Stockinvestigator

Introducing the CRR

Hi,

today I would like to introduce the CRR - this is the "Chance-to-Risk-Ratio". Nothing really new, most people know it as the Profit-Risk-Ratio. However, I want to try this idea - which I never really did before. Here is my approach to it:

1. Find the stock you would like to trade and set a personal target
2. Set the SL
3. Divide the possible gain (target minus price) through the possible loss (price minus SL)
4. This ratio has to be bigger than 1.5 in order to place the trade!
5. Use the ATR(5) to see if the move in your direction will be able to take place within 4 days maximum!

The stock I choose today is MEH, last price was 8$, my first target is 8.70$, the SL is at 7.60$ (below PivotPoint). The ratio therefore is 1.75. The ATR(5) is at 0.76 currently - which makes it risky to get stopped out - but also likely to reach the first target within a day! Here is the chart:



Good luck to all of you,

The Stockinvestigator

The horror day of trading...

Hi,

wow, just right for Halloween, it was a horror day of trading yesterday. All my picks were losers. It seems like I am out of practice - after a week of absence. Oh well.

The FXtrade on the EURUSD lastet only about 2 hours, it was then wiped out for a -20 Pips loss. Also EXFO and RMTR were stopped out - leaving us with a -2,75% loss for EXFO and a -4,63% loss on RMTR. Too bad.

But, what are the lessons learned? - Well, I was rushing yesterday - however, I felt very comfortable with my picks. So, you should only take them, when looked at them carefully (no rushing) and, when being comfortable... - Today, I will not make any picks, simply because I don´t have the time.

Take care,
The Stockinvestigator