subject: Day Trading Pt [print this page] Daily Stock Report for Thursday Morning, December 17, 2009 pt2
Focus chart:
HPJ, Hong Kong Highpower is cooperating very well as a bullshort. It is sitting down like a good dog. You have all heard me say that this is my favorite pattern of all bullshorts, that parabolic curve up with faster and faster price increase along with volume increase as well.
The volume wasnt spectacular in terms of all time highest volume but the pattern was increasing and peaked out around 1.2 million shares traded on the peak day. For those of you who have studied this in the Wizard Training Course, the peak day in price usually is associated with the peak day in volume or within a day and HPJ did that.
So we have had 2 sharp down days with today being a drop by 9.2% and closing toward the low of the day. This weighs toward the idea that the stock will likely drop further near the opening on Thursday and likely get into the $6s tomorrow. If it gets to $6 or low $6s then go ahead and cover this short position. These often bounce substantially. This anticipated bounce should not be used to go long with any high degree of certainity or with much of a long position but it should be used to buy to cover. Dont get hung up on whether we see $6 or $6.2 tomorrow or Friday but focus on how the stock is acting. If it is drifting lazily downward with lower volume and doesnt act strong at all, you can keep it open but if it makes a really sharp drop with high volume, look for a bottom on that drop to cover the short.
Mitch King is the founder of TradeStocksAmerica.com. All material presented herein is believed to be reliable but we cannot attest to its accuracy. All material represents the opinions of Mitch King. Investment recommendations may change without notice and readers are urged to check with their investment counselors before making any investment decisions. Opinions expressed in these reports may change without prior notice. Mitch King and/or the staff at TradeStocksAmerica.com may or may not have investments in any stocks cited above before or after this newsletter is prepared. Use the stock table above as a model portfolio of ideas that look attractive at the time of the writing. Comments can be hypothetical in nature. Opinions expressed in these reports may change without prior notice. Disclaimer - Stock investing or stock trading has large potential rewards, but also large potential risk. There is risk of loss as well as the opportunity for gain when buying or selling stocks, bonds, option contracts or engaging in any strategy listed in the Daily Stock Report, The Wizard Training Course, The Trading Room and our seminar or workshops. You must be aware of the risks and be willing to accept the risks when investing or trading in any financial markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell stocks. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
by: Mitch King
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