$PEIX and $HDY Technical Analysis

PEIX price action has been interesting lately. It appears as if the price action is pretty similar to December time. I would like to see an increase in volume tomorrow compared to today, and that would confirm to me that this move is going to do a copy cat to December.



HDY off the base was an amazing move. Direct offering to raise capital caused this thing to drop it like its hot on Monday afternoon. The 5 minute chart intraday tells me there are still buyers on this dip...that and shorts covering. If we can hold these levels marked, we should be good...especially if we can hold this ascending base trendline. Any drop below $2.00 and I would short this thing.

How I lost $13.98 on EK, but SHOULD have made over $2k

I lost commission on EK. I'm ok with just that. But I could have day traded EK a lot better than I did. Premarket volume was impressive. When premarket volume is high, the price of the gap up matters more.

I will tell you I hate the "COULD HAVE" phrase with trading...cuz if you could have, then why didn't you? And if you didn't, then your could have statement holds no water. Real executed trades are the real test, however, I think evaluating reasons why you "SHOULD HAVE" can be very valuable. That being said, here we go.

1. Considering premarket activity, I SHOULD have considered a buy premarket. EK gapped in the premarket to over the HOD (high of day) and then retraced back down to the 20 dma. A bounce off of this area would have been PERFECT.

2. The second area I SHOULD have jumped in for the trade was as it again broke yesterdays high.

3. The third area I SHOULD have jumped in for the trade was on the breakout of the high in premarket trading.



Jason Bond is a great guy, smart trader and he was monitoring this one for a safe entry. (If you don't know who that is, check the right tool bar or click HERE. All that info on his site is free up until Monday the 16th. After that, it's going to be only for subs.) Anyway, I jumped in at .78 and had a stop at my buy price right away because I didn't want to risk losing any more than $13.98 on this one trade. That was my plan going into it, and didn't want to deviate from that plan, because I have lost money from my previous deviations.



I have no regrets of keeping my stop at my buy price at all. This was a great lesson to learn from. Next trade like this will be executed quite a bit better. I know the "if only I did this..." shouldn't be considered all the time, because the real trade is all you have. No regrets, just lessons.

It's been a week...Watchlist time

So I've been studying trying to perfect a specific pattern in trading lately...so I haven't posted in a while. I am watching a nice group of stocks ready to breakout, or that have settled nicely. Not much extensive research on all of these because I don't have much time.

1. PEIX - I like this one if it can hold $1.00



2. FOE - I like the break of 5.19. Short interest sitting at 5 days with 7% short. I like the increase in volume the past 3 days. This is actually my top watch for tomorrow.



3. AMD - 14% short 6 days to cover. I like the bump off consolidation



4. DVAX - I like this on a morning pullback.

Fresh Start: Jan 3rd stock watch

Man there are a lot of stocks that have some pretty looking charts out there. I want to focus on a couple that I have been watching.

1. ZAGG - $209 million market cap with a beta of 1.55 and short interest sitting at 11.19 days to cover. As of the short interest report on 12/15/11, ZAGG has OVER 44.80% short of the float. This for one, is incredible! The stock can only get beaten down for so long until people want/need to cover their short positions. The chart also shows a triple bottom play here off of $6.50 area. ZAGG is currently oversold, and MACD lookin to turn up. Gotta get position before some of these lagging indicators, otherwise you miss the move. I will add at $6.62, or on a break of $7.24 with a stop at $6.50.

November 14 - ZAGG beats on earnings by $0.01

December 21st - ZAGG guides above consensus

Now, ZAGG doesn't report earnings until March 12 (Estimate of $0.17 eps)




2. $HDY - I think we have one more day of possibility of positioning in here. I will bid somewhere around $1.26-$1.30 with a stop at $1.20. I love the idea of getting in on the bid on this one. The 9dma has been good support as it is trickling up. With 28% of the float short, at about 8 days to cover we are lookin at some good potential here. I think that this one may open up green and stay there, and if thats the case I missed this move and I carry on. MACD, RSI turning up on the daily and lookin good.



3. INHX - A break of 11.20 that this thing might want to breakout and carry for about $0.30. I dont have specifics on how to trade this one, but I like the chart and would take it as a day trade or scalp.



...My internet is being a piece of crap so here is just a list of the other charts that look good to me...

ALTH
BONT
UQM
PZZI
HW