Today saw a good amount of action. The penny market seems to be picking up again in the amount of plays it had today. Last week we saw a very slow week with little to play. This could be the 1st of many days where we start to see a turn around and see plays along with promo's starting to make their way back.
I noticed something that I am going through lately. Since I haven't played much due to the market being slow I am having trouble getting back into a stock. This is something I am going to have to overcome if I want to start seeing profits again. The big one I missed was $LUXR at the end of the day which was mainly because I received a phone call right before close. Hate when that happens!
If you ever find yourself in this rut where you don't play anything you have to realize a couple of things. One thing that keeps running through my mind is since I am not playing, I won't play in the future and therefore won't ever get to see profits again. This isn't the case! New plays will come around, the market will pick up and you will play again. As long as it's a good play you need to force yourself back in and continue to play or you will never get out of that "rut". That is what I need to do. I need to keep an eye on stocks and get myself in a play even if it's only for a quick scalp. I need to do this, this week.
There are a couple of things that I want to talk about in upcoming articles that I will list below.
- What to look for as an indicator a stock may not gap?
- What to look for in a tank?
- Website's where you can find good information
In articles to come I will start to address some of these things to better help us as a trader. That is the main point of reading and watching video's isn't it? To better yourself as a trader, and that is what we are striving to do.
$LUXR:
This is the main stock that I want to talk about in this blog. Remember weeks ago I talked about wanting to play this stock for a gap? I must have been blinded for the remainder weeks since this stock has come back to life and has made huge gains since we talked about it.
I need to keep a better eye on stocks like this so that I can get in early to enjoy some of those massive gains. This teaches us to simply not write off a stock just because it has a few red days.
If you look on the daily chart of this stock you will notice that is has been on a nice up trend and has even broke the trend line in a bullish way. Watch this stock closely as you may see it quickly come back down to make support. We also haven't seen an consolidation lately which makes me think that this is "the big run up" which is usually followed by a huge tank so be careful when holding this stock (not saying that it won't have more big gain days). We could be due for a pull back into the 1.60 range.
Support lines to watch:
2.06 Range
2.00
1.95 could prove to be big support
1.90
1.86
1.76
If it drops below 1.75 it is no longer making higher lows but rather lower lows which would indicate a sell signal.
I am looking to take this stock for gap along with playing quick scalps. However, I will not be able to trade till tomorrow before close and feel I may be late to the party by then. I would not recommend this stock for a hold. At these levels this is a hold/sell instead of a buy. A buy would have been around 1.30-1.60 since it is close to support levels where as now it is far above them.
Again I am not looking to play much until the next APS pick comes out. When that happens you will notice these articles will have much more detail in them along with game plans as that will be my main focus.
Have a good trading day tomorrow! Look for those stocks to make quick profit!
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