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28 Oct

Open Trade Updates For Friday October 28, 2011

by

Asia had a solid run but Europe is mixed this morning and futures are down. I don’t think we see the market fall apart and wouldn’t be shocked if we closed green. My guess is we dip at the open so early on I’ll be short biased until I see the market break red/green or make higher lows on its way toward red/green. I’m probably looking to make a day trade or two today but not sure I’ve found anything yet I want to swing for 2-3 days but I’ll be looking all day long. Remember, I was scouting out QPSA for days before I made my move – CLICK HERE – to see just one of many blog posts I did on QPSA just days before entry.

Economic figures set for release Friday include September personal income data at 8:30 a.m. EDT and the University of Michigan’s consumer sentiment data for October at 9:55 a.m. EDT.

Thursday I closed GLUU at $3.12 because it failed to breakout of it’s consolidation phase. I really thought we’d see runup into earnings by now, maybe it happens next week, but one thing is for sure – the big boys have not been piling in during the bull run. Today I’ll have GLUU on my watch list to short as a result of this. Made about $1,000 on that trade start to finish so not bad for a few weeks work.

WAVX has been the perfect technical trade and a good example of why I buy in 2 phases drifting into a trade or scaling as some call it. The alert at $2.61 was a good entry after the channel confirmed again. Then we bought $2.46 just above support of $2.45 before it ran $.35 cents the following day. Averaged in at $2.53, something I said I wanted to do, $2.80 was a great place to take about $1,000 off the table Thursday. Yes it’s an ascending triangle and yes that might break out but in my experience it’s best to pay yourself anytime you’ve made good swing trades. Hard to argue about $2,000 in 2 days which is why I decided it’s not necessary to gamble for the break of $3. Watch the old video on WAVX to learn from this pattern, it’s very powerful and we’ve done it before and will do it again.

QPSA is going great. We’ll probably see some pullback today but I’m inclined to hold all my shares into next week. Right now I have no plans of selling, even if it dips because like I said, I expect a dip. I’m up about $3,000 unrealized right now and my immediate goal is $5. I’m not one to brag but once again I’ve positioned us in a company that’s now being touted as a buy by SeekingAlpha and TheStreet.com Thursday meaning more and more eyes are going to be support us at higher levels. I don’t think the short interest has thinned too much, was over 13 days to cover when we got in and we still have the myYearbook deal on the table. If this merger gets announced without additional financing I expect QPSA to fly up the chart possibly well past $5 for another $1-$2 premium on top of our existing profit. If the deal falls through or gets delayed for any reason I’m out immediately because that will be a catalyst for others to sell as well. Right now I’m very happy with out positioning. I’ll keep you updated as the day develops.

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2 Comments

  1. Lawrence Ashfield

    Jason,

    Thoughts on ALSK.. It appears they are cooperating with Verizon in upgrading their systems. They sold land adjacent to their headquarters to Verizon and have construction permits in both companies name

    Reply
    • Jason Bond

      Hi Larry. Just did some digging and I like the Verizon story as the short term catalyst to take price higher. Seems Wall Street does too with the nice 6% move Friday October 28. At this point resistance is pretty thick through the $7.50 range. If this news is strong enough I’d expect some sideways action under $7.50 for a short time period before it gathers the momentum it needs to make it’s move through that range. After $7.50 it’s a clear shot to $8.75. It’s been added to my watch, nice market cap of $300m, thanks for the heads up.

      Reply

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