Description

My basic trading philosophy can be summed up by one simple quote:

"Trade the ticker, not the company" - Nate Michaud


Monday, February 24, 2014

Watchlist for February 25, 2014

I do not intend to create watchlists very often, as I'd much rather people learn to do them for themselves rather than grow dependent on mine. However, with the OTC market so active, I can't help but put up another! I will be running the same scan as in yesterday's watchlist. Please find the details of my process in this post.

Main Watches:

NVLX - Long 150,000 from $0.344ish. Another fantastic close - maybe blow off top tomorrow morning? Gap-up at least likely. I'll be selling my position if we're opening weak or into a morning spike. The chart is definitely getting overextended; so as soon as we get that g/r snap or a BIG morning spike, I'll definitely take a short position as well!

EKSO - Very impressive run so far! But the chart is undoubtedly overextended, so this is at the top of my watchlist for stocks to short. Like any other overextended short, I want to short either a big morning spike or a g/r move. I think $1-$2 of panic is likely once momentum finally breaks, although the panic could be choppy.

FNMA - Long 60,000 from $3.58ish. I can't believe this is third on my watchlist, but that's the market we're in! GREAT breakout past $3.50, I think a gap up and morning spike is very likely. If we get a weak open, I'll sell my long position and look to reenter into a morning washout anticipating r/g later. I think this has a multi-day run in it, possibly $4+ in the next day or two. Main thing I'd like to see tomorrow is increased volume.

VEND - Well, I need this to be shortable at Centerpoint tomorrow morning, or I can take it off my radar immediately. I'm stalking this for a short only - you guessed it, either a g/r snap or a big morning spike! This is finally speeding up and has held green two days in a row now; so I think when it snaps, it will be a nice washout.

Secondary Watches:

PAWS - Another solid green day but not the strongest close in the world. I might try a short on this when we get the g/r snap, but at these prices and with the lighter volume, I'm not quite as excited about it.

WPWR - Perfect breakout past $.45 today. If past Stocktips promotions are any indicator, this should run nicely now. I won't overnight it, because I'm too scared of a halt, but intraday I definitely will consider buying dips. Once this overextends, I'll stalk for the short, but that likely won't be for a few days.

MRNA - Great recovery after the morning panic today! I'm still hoping this can overextend more for the eventual short. That's the main thing I'm waiting for.

ELTP - Very close to that $.455 breakout! I'd like to see higher volume once we get the breakout, but I think $.50+ is possible if/when we get the break.

Feel free to contact me with any questions guys! I'm a little behind on emails right now, but I'll try to catch up soon!

Disclosure: 
Long 150,000 NVLX from $0.344ish
Long 60,000 FNMA from $3.58ish

30 comments:

  1. I just emailed you about this! My bad man, I should have looked here first...in my email you'll notice the stocks I'm watching are specifically ones that I hope to breakout (I don't have the broker or funds yet to short, I forgot to mention that). Sorry for the hassle bro!

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  2. I just want to let you know my appreciation in you writing this. You verbalizing the watchlist really helps me in understanding and visualizing the trades.

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  3. Great post as always! You have no idea how much it helps everyone.. Thank you Tim!

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  4. thanks Tim for watchlist, it does help alot

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  5. Tim the way you Set up your Watchlist gives us the little guy a chance to make some money and learn the strategys along the way where do i send my payment for March?

    Frank Montreal

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  6. you know that majority of the people in profit-ly have less then 5000$ account so trading with stock under 1 dollar is all we can do. Most of the alerts are for 3$ to 10$ that makes it very difficult to trade. your alerts with the charts is simpler for us newbies.

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  7. Love the way you teach, and use the K.I.S.S. Method (keep it simple stupid). Thanks Tim, we should trade with you Live.

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  8. Can you elaborate more on the meaning of a washout? Does it mean like the choppy price action while consolidating or when the volume starts to fade after the big momentum wave? Great post by the way.

    Thanks for the post,
    Poom Hang

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    Replies
    1. Morning washout means the stock snaps below the previous closing price and the price drops

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  9. Oh man, NVLX is tanking. Tim, I can wait to hear your insight on this. Thanks for all your efforts, you are a good man.

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  10. Hey Tim,
    I know you have talked about shorting into G/R snaps, and shorting into morning spikes, but what is your approach on stocks with a gap down upon opening and then a morning panic like EKSO had today? Do you usually short into those or wait for a post bounce to short or both? Thanks!

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    Replies
    1. EKSO was definitely tougher with the gap down. Since it opened in the red, I immediately took a small short just in case it had a morning panic. Had it had any kind of morning spike back towards the r/g line, I would have been prepared to add to my position

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    2. Hi Tim, I am a newbie taking the time to learn since the last 4 months now. I came across your blog recently and I cannot help but re-iterate how valuable your blog is. You are an inspiration for many, including me and probably one of the most humble and down-to-earth beings I have seen. T-H-A-N-K Y-O-U!!

      Coming to my question, in your reply above to EdPetrol, you mentioned "Had it had any kind of morning spike back towards the r/g line, I would have been prepared to add to my position". Why would you add to your short position here if its spiking from r/g? Would not you rather wait for it to re-test the prior close and fail before adding to your short? Probably I am missing some subtle point here...?

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    3. I would have shorted and risked off the r/g line, you're right it would have been important that resistance held there

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  11. I loooooooove your blog man. RIHT just hit my inbox don't know if it's on your radar or not. But it did have a nice exhaustion gap up this morning.

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  12. Great blog bro. I understand why you bought NVLX completely but had a question about when you bought. Did you buy NVLX on the 21st and 24th when they broke the earlier intraday high (entry points look that way from looking at a 2 minute chart for both days), or was it for another reason? Thx

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    1. You have the right idea, I took most of my position size both times after it had broken past the morning high

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  13. How long do you think NVLX is going to go up for?

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  14. Hello Tim, Thanks for the info on stocks

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  15. Tim, so on your NVLX trade you bought it the next two days after the break of the previous high on the daily chart which was on the 20th. Is two days usually the max for buying intraday breakouts after a break of the recent high on the daily chart? At one point would you say its overextended and stop buying even intraday breakouts? Thanks!

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    1. In a lot of cases once the chart gets overextended I won't buy those breakouts anyways, since the volume was so good on NVLX I felt safer doing it though. I can't say there's an absolute answer to this question, it's really a case by case basis and I go by feel. The more consecutive up days, the less comfortable I get because of the larger panic risk

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    2. Tim, why didn't you buu NVLX on the 20th, when it broke out? Is it because of the low volume? Thanks!

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    3. Another question, Tim. On FNMA the break is at 3.50 but you are long from 3.58. Is it because you did't get an execution right on the breakout or do you usually wait a litlle longer to make sure it isn't a fake out? Thanks!

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  16. what does G/R stand for ? Sykes doesn't use that lingo.
    Trying to learn Tim G's ways too

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    Replies
    1. g/r = green to red, up on the day to down

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  17. This comment has been removed by a blog administrator.

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