As noted in previous blog posts, I’ll be narrowing my watch list down to 3-5 ideas per day with really good catalysts. Please remember that when a stock makes my watch list, it means I’m starting to dig deeper by scouting the trade, however, it’s not a ‘buy’ recommendation. If you want to trade my watch list ideas, please go right ahead… but understand if I don’t get in it’s usually because something small changed or in many cases, I just missed the move because I was trading something else.
Etrade account #1 balance is $230,861 up 11% in 2011 (Starting balance $208,000 in March 2011)
Etrade account #2 balance is $6,487 up 44% in 2011 (Starting balance $4,500 in March 2011)
Short account #3 account balance $100,842 up 1% in 2011 (Starting balance $100,000 in June 2011)
China might lose their grip on rare earth metals due to the Pacific Ocean floor find. There should be some decent rare earth trades ahead of us, both long and short. Read up on what I believe will be a good trading catalyst for us – Pacific Ocean rare earth metals find. I’m short biased tomorrow, but I’ll be looking for longs as well. The possibility that these newly discovered deposits will make any difference in the supply of rare earth elements in the near future is remote but it will act as a catalyst and move stocks.
REE is the first stock I’ll be looking to short tomorrow morning because it’s already starting to sell off a bit on this news and has a nice dip opportunity in the chart. A break of the $9 range could open the door to $6 support so I’ll be watching it very close to see how traders continue to react to this Ocean news.
AVL is another stock I’m considering as a short for Tuesday. There is a $.50 per share opportunity between the current price and support and a break of $6.30 could certainly open the door to the $5.75 range.
AAAA is a paid pump with an $80k disclaimer. I don’t think it has legs to stand on so I’m short biased here into any spikes if I can find shares Wednesday morning. It’ll probably jump a bit early on which is exactly what I’m hoping for. Goal is to ride it down if and when it gets slammed.
PAL made a clear break above price action resistance and is now riding slightly above the 50 Moving Average at $4.29. If it consolidates at this new support and silver heads up I’ll buy 5k shares and play it short term as a runup into the 8/8/11 earnings.
GRHU is a technical trade that’s setting up quite nicely off a recent bottom around $.50. With a tiny market cap around $18m and no major resistance until $1.25 and $1.52 it’s one I’m watching close tomorrow.