After reviewing all available data we've decided to scratch out of our new PRKR trade from this morning and focus on NSPH instead.
NSPH has pulled back a bit since it ran a bit 2 weeks ago. We're noticing some underlying buying pressure and are adding a little bit to our holdings..charts to follow later. PRKR just keeps on chugging and there appears to be new buying coming in..so, we've added some more at $3.98
Today's open was the perfect opportunity to profitably close out the LDK position that we entered a few days ago. As was and will continually be stated, we prefer not to have positions going into earnings..which for LDK is next Tuesday.
So, as we've been saying for the past 10 days, GALE has been steadily rallying and is now up against All Time Monthly Highs at $3.54 (March of 2012). We are trimming our positions as Monthly Highs are nothing to sneeze about. So far we've really hit it out of the park on this one and hope to continue to do so. More to follow.
We've decided to initiate a position in CNDO, a recently beaten down bio-tech.
We've decided to add a little more to our GALE position as we've noticed buying pressure after taking into account all our inputs. At this point, we'd like to see it hold above $3.00 and if it should happen, we'll be interested in the action at the $3.20 resistance. Stay tuned!
So, we like how both the market and NSPH are holding up today and have bought back what we sold earlier. That's the beauty of being in the right stocks and making decisions from a position of strength. You can always try to make more! The same can't be said if you don't have a plan.
We've taken some profits at $2.46 as we want to see how this stock handles the 200 Day MA which often acts as resistance(temporary as it may be).
As the above Daily chart for NSPH shows, the stock has been in a sideways range since the end of July/August. However, we noticed that one of our key indicators, MACD, was starting to gradually slope upwards..which we view as divergent behavior alerting us to follow it in "Stealth Mode" and buy our shares at very good prices.
So, this has been some week for the above 3 stocks that we've been commenting on for the past 2 weeks. No doubt PRKR has demonstrated the most consistent support and advancement but NSPH & GALE are not too far behind. A good week for all!
As we react to what's happening at the present moment, make sure to check back in tomorrow. We'll just say that we're big believers in the adage that Friday usually accentuates whatever has been taking place during the week. If this holds true, things could get really interesting tomorrow. Stay tuned!
So, first off we're overwhelmed by the recent interest in our fledgling site(although we've all been trading for years). And as referenced in our last few posts, it only took a combined 40% return in the first few days to get some attention ;-)
Anyway, back to work. So, as the hourly chart above shows, GALE has run in the last two days and if it takes out and satisfactorily holds $3.10 by week's end, could very well make a run to test the $3.54 high. So, AT THIS POINT, we see no reason to shed anything from our long position(Stock at $2.50 and April 2 Calls).
We took a nice long position in NSPH yesterday($2.15) as we like the Risk/Reward profile for it. Please note that Biotechs, which we seem to be drawn to these days, are very risky. As with all our holdings, we won't hesitate to lock in profits should either of the following occur..The overall market starts to look weak or any of our individual holdings exhibit trading activity indicative of somebody or some entity having reason(ahem..) to get out.
So, as we mentioned, we don't like to hold positions into earnings and as we weren't crazy about the trading activity in PRKR the day before earnings, we got out. That being said, the beauty of this business is you can get back in at any time..at a better risk profile. So, net net, we will be watching PRKR closely and might very well establish new long positions.
And lastly, as you're probably well aware, this is all very time sensitive data..So, make sure to follow us on Twitter so and receive immediate notification of our latest analysis and trades.
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After following this one for some time, our sensors have indicated that someone might be accumulating in stealth mode. Who might it be or why? Could it be rumor of the approval of the "Gram Negative Test"?
Well, while the rest of us good citizens are waiting to find out the answer(ahem..) we've decided to initiate a long position right here at $2.15
After following and watching in stealth mode, for the past week or so, we have decided to initiate an initial long positions in GALE. Chart to follow later.
We've decided to exit our PRKR holdings as a combination of earnings after the close, a somewhat weak overall market opening and selling pressure on the opening makes for a low risk long holding. We took our roughly 8% gain and will wait to see how things go. Although we don't normally trade around earnings reports, we might actually put on a short position here if this morning's trend continues..Chart to follow later.
So, as per the above 30min chart and our prior posting, PRKR did indeed breakout above $2.90 and so far today(11/11/13), has displayed decent buying support. That being said, this could change in an instant. But all things considered, we like the support that's developing and are adding a bit more to our long position. Btw, we definitely appreciate all the new requests to follow us via email that have been received in the last two days.
We are watching PRKR carefully to see how it handles the inevitable breakout above recent resistance at $2.90 area. Please note that when playing a recent disaster stock, expect volatility and fake outs.
Above is the Hourly Chart for PRKR. We like the consolidation pattern that has developed over the last couple of days and have taken a small long position. We will be watching carefully to see how it handles this key $2.90 area and if satisfied, will be adding to our position. If however, like often happens, it stalls here or pops and pulls back with very little support, we won't hesitate to get out.
The Stealthy Trader
An experienced trader with over 15+ years of markets experience utilizing proprietary filters and analysis tools to uncover low risk trading opportunities.