August 21, 2010

Penny Stock CIT Triangle Trade

CIT which is now a penny stock got some news on Friday and subsequently the stock took off. CIT broke out of the days trading range and hit $.93 before people started taking profits which jolted the stock quickly down to the $.70s. CIT began to consolidate.

Here are some other triangles.

This is an ascending triangle.

A longer time frame triangle .

And another intraday trade triangles.

full disclosure: no position

How To Trade Triangles

There have been a lot of bio-tech and pharmaceutical stocks in play lately. It is time consuming and very hard to make a good long-term trade in these companies. Luckily, if you can just recognize chart patterns and use basic technical analysis it can take just a couple of minutes or even seconds to get a read on the next direction for the stock.

There's the triangle and key resistance levels. Three times the stock couldn't budge above 5.00. One time the resistance was even 4.99.

full disclosure:no positions

August 3, 2010

Former NCAV Stock Blonder Tongue

This former NCAV cheap stock Blonder Tongue Laboratories BDR popped 70% today off of earnings.

Operating EPS was positive vs a loss prior. Sales were up driven by digital video encoders. It looks like there is about 14.7 million in current assets and about 7 million in debt. So, this big pop pushed it over NCAV. But it still might be in play. I guess we will see.

disclosure: no position