Having already made quite a few moves early in the week, there will be no watch list today. Instead I’ll be monitoring the health of my open swing trades. If I see anything great, sure I’ll jump on it and alert but for now I’m working off Tuesday breakout watch list because all of those are still in consolidation and continuation mode.
U.S. stock futures were little changed Wednesday, with investors keeping a nervous eye on Europe’s debt crisis while awaiting the Federal Reserve’s Beige Book report on the U.S. economy. Investors were also assessing the flow of corporate results as earnings season gets under way.
The economic calendar features the release of the Federal Reserve’s Beige Book of economic anecdotes at 2 p.m. Eastern time.
BPAX – A few emails are rolling in about what I’ll do with BPAX and the honest answer is nothing until I see the price action on the stock this morning. oIf trading is new to you, pull up a 6 month chart on BPAX real quick. That huge drop from $2.50 to $.35 is definitely going to prompt an investigation but it’s nothing more than an investigation. People sue when they lose millions of dollars, it’s the good old American way, but that doesn’t mean they’ll win. The question is, does it shake the big money out and to that I say no. Yes there will be some panic selling from inexperienced traders hitting market orders but you need to remember, BPAX goes back in front of the FDA in February and people are accumulating that. I hardly believe anyone who is still in the stock from $2.50 will be selling ‘investigation news’ if they have not sold already. So then the question becomes, will all the dip buyers bail and the only way to see that is wait for the market to open. My goal is in the $.60’s still so we’ll just need to see what happens here but this is part of swing trading. Keep in mind, all shorts who came into BPAX after the crash are at a loss right now – expect smear campaigns to be flying everywhere on this news. Only thing that matters is the chart here – let’s see if it continues up or down and then we have our answer. If you want out early just pull the trigger but I’ll wait for a bit and see up $2,100.
QPSA – Even thought I’m a 5-10% swing trader this is a stock that could go to $5 – $6 and soon. I’m in with 13,140 shares at $3.16 and will buy about 7,000 more shares just above $3 if I can. Had 10,000 on the bid last week into the beginning of this week but only managed to fill 3,140 which is a major bummer. This story of myYearbook being in QPSA’s earnings for the first time in February is going to make for one of the best catalysts in January I think. Here is Rodman & Renshaws report from Tuesday http://bit.ly/zfp9yK and once QPSA starts climbing all the major media will jump on the story because it’s good for their website traffic. Once that goes viral like it did the last time I swung QPSA it should be heading into the $5 range. Will I take 10% on this one and move on? That’s a day to day assessment but right now my gut tells me if I just hold for a few weeks this could be a locomotive so there’s a chance I go for 50% again like last time. For that to happen I need to see this story take, which in my experience it should – http://bit.ly/zfp9yK
LGF – First buy was Monday at $8.47 for 2,000 shares and second buy was Tuesday at $8.86 giving me 4,000 shares at $8.66. My goal is a breakout above $9 which should shoot it up into the $10 – $11 range. As always once up 10% I start to look for an ideal exit on my trade. Scaling up means my average goes up and leaves less room for error in judgment about the trade. I feel confident LGF will breakout which is why I made such a move but if I’m wrong the idea is to stop out even or better should it turn down. Once I’m green on a trade I now try hard not to let it become red with a small degree of wiggle room.
USAT – Nice move Tuesday on massive volume and it closed strong. I’d like to see USAT in the $1.20 range today or tomorrow. Earnings are Monday and I may or may not hold through them but I’ll definitely keep you posted as it comes closer. What we really need to see is some runup now that the chart pattern started up. With over $1 million in dollar volume Tuesday I think it could continue and trade between $1.20 and $1.40 before Monday.