So, below is what one of our "dashboard panels" looks like.
Of particular importance to us is the combined view of the stock chart, Time & Sales data and the Level 2 data.
We have been holders of NSPH for awhile as after it's most recent earnings call, they really beat it up.
This is an example of "Know thy stock" in the "10 Commandments of trading" that's available on the site. I trust that you all have looked it over.
NSPH is making great gains in their business model although the sales have been a little slow in developing. Why? Because it's a longer turn-around time from presentation to purchase order than most businesses. Their primary customer is hospitals..they take forever to make such decisions.
Anyway, when this one popped the other day, we had expectations that it would pull back to test the gap area..and we were ready.
Below is a view of what we were looking at yesterday at a specific time in the day.
Remember, it's all about favorable risk/reward scenarios..
This one had a few..The pullback filling of a gap after a nice pop, the 20 Day MA nearby($1.37..where we were going to buy more!) and our filters picked up on accumulation at this $1.47 zone...
Anyway, feel free to reach out to me if any of you have questions about what I've discussed here.
ROYL popped last week and has demonstrated strong buying interest and support since then.
The decision to take profits on 1/2 our position is in somewhat due to a prior experience with this stock.
Note the candles with the relatively long "stems" and smaller bodies. There was a huge one when ROYL exploded to $4.12 only to come back to earth and settle at around $3.40.
This is an important concept in the "10 Commandments of Trading" that's available on the webiste..
"Know your stocks behavior"...
Anyway, we still like the present formation and will be looking to take advantage of similar breakouts in the near future.
If anyone has questions about what they see on my annotated charts or what's covered in these posts, please reach out to either myself or Warren..who can be found on Live Chat(bottom right of website) throughout the day.
Ever since mid May, the small cap index, IWM, which had been acting like an anchor around the waist of the big indices, is now leading the bullish charge.
Below, note that it's recent pullback seems to have done a bullish thing..filling a small gap left around 10 sessions ago.
Also note the 118.50 key resistance level and 120.58 recent all time highs.
So, there are a few things to note regarding the MNGA chart.
For one, it's price is now above it's 20, 50 & 200 day Moving Averages and of equal importance, they are stacked in a bullish formation..shortest duration to longest.
It's clear that it needs to break above and hold the $1.82 level as in recent sessions it's had a hard time doing so.
Something that we are watching with interest..
And lastly, we like the recent surge in volume and the fact that should it successfully navigate the $1.82 level, there really isn't any until the old highs around $2.45!
So, the chart at the very bottom shows where we are now(right margin) in relation to prior resistance(16,700 zone).
We would like to see the Dow take out 16,805 and resume it's march on all time highs again.
That being said, we have to keep an eye out for this key 16,700 level.
On an interesting and perhaps more constructive note, the IWM(Small Cap Index) has now switched roles with the Dow in that it's leading the way with a more bullish chart unlike the way it had acted like an anchor on the overall market for the past few months.
Ideally, the IWM will now lead the way higher, the Dow & S&P will follow and we'll have a real rally on our hands..
6/1/14: So, this one presents both a compelling yet uneasy picture. On the plus side, it's formed a 3 day support line at around $3.28. The importance of this is that although it penetrated this level it's managed to hold and close above it. We like that!
On the other hand, it's extension so far has been capped by the 200 Day MA..not exactly bullish on that front.
Anyway, last week was a pretty listless one in the overall markets most probably due to a Memorial Day Holiday hangover.
Net net, we'll be monitoring this one closely as should the market resume it's upward trajectory
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