Hi everyone! Nice day today with tons of stuff to trade despite the low volume in SPY. I closed out ARAY, RGDO and LXRX in the morning all for small losses (only to see freakin ARAY pop to $10.25 in after hours for some reason?! GRRRR) but I was actually expecting that a bit since last week biotechs were pretty weak. However I try not to let morning losses deter me from my plans and I stayed focused and ended up coming back nicely with a bunch of day trades in ZIOP, RADA, CAPN and LOCO! All in all a pretty good day and I have some nice ideas for tomorrow:
RADA - Awesome news on this little stock today. Though they don't say anything about how much the deal is worth, as someone who used to work for a defense contractor I can say that these companies like Lockheed, Boeing, BAE Systems etc don't select just anyone to participate in these types of projects. The implication isn't so much the deal itself but more that since they were chosen by Lockheed, it opens the door for RADA to make other deals with other US defense contractors that normally wouldn't even consider a company like RADA (edit for clarity: RADA actually already has relationships w/ LMT and Boeing and a few others but every time Lockheed picks one of these little companies for a project it will go through the chain to Boeing, BAE Systems, Mantech, SAIC, SRC, etc and they all start getting ideas...for whatever reason in the defense space in my experience at least people seem to like Lockheed to make all the decisions and take all the risk, lol). These big contractors are really picky about who they work with and it's tough to get your foot in the door, but once you do it will usually open the door to lots of other opportunities. So anyway, nice news, and I think this can go higher. If it gaps up too much it can still be a technical short but I think fundamentally this is a long on this news. I'll be watching for a pullback toward $2.60-2.75 and a red to green move. My suspicion is a lot of people will try to short it thinking it will just fade like the other times it has popped like this, but I think this news is a bit more important than the other times it popped. So anyway, entry $2.60-2.75 with risk under the low of the day, and target $3.50ish. If it gaps up I will watch for dips toward $3 to get long. If it gaps up too much ($3.40+) I'll consider a short against $3.50.
CYBR - Finally held up today over $54. I'm watching for a pullback in the morning toward $53.50 - $54.00 and then a red to green move after little dance around the round numbers. Target will be $55.50 - $56.00 with risk against the lows of the "dance."
CYBX - This is a bit thin but I absolutely love the daily chart. I am really hoping for a gap up to short into like the last couple days but in case we don't get it I have a couple other plans. If we open between $65 and $65.30 I will start a small short with a stop over $65.45. Then I will add on the crack below $65. In the event of a gap down under $65 I will probably just end up leaving it alone until the first bounce which means I may miss the trade. A few times I've seen these gap down under the round number and just immediately plummet for the first 15 minutes and waste the whole move w/ the gap down so if that happens I won't be able to capitalize. However if it manages to bounce or set up at all under $65 I will short the first pop/setup with a stop back over $65. So this one is gonna have to be played pretty dynamically and I'm hoping it doesn't gap down but if it does then it does!
I'm gonna keep my list to just these three though I do still have some others I'm watching...Between these three I should have plenty of opportunity in the morning and then can re-evaluate others after that. Here are the other ideas:
- NPTN planning to enter a swing short over $7 soon
- ESSX possibly short $1.60+
- RTRX possible short $23.20-23.50
- ESPR could go either way but awesome liquidity and nice range ... watching for day trades
- LOCO watching for long over $27
- ZIOP short continuation on pops
- ZGNX possible swing short under $1.35 back to $1.20 w/ stopover $1.40
- ADXS possible red to green
- TTS nice swing look if it can dip one more time
- EGRX possible bounce over $42.50
- QUNR parabolic short $39+
- LQDT possible red to green
Hope everyone had a kickass Monday!
Chris
Submitted March 23, 2015 at 10:12PM by greenbartrading http://ift.tt/1G9h5wZ
No comments:
Post a Comment