Oil and Silver Position

I bought the oil ETF UCO awhile back. This position trade is working out well. It's up 11% now as oil has climbed. I also bought some Silver American Eagle coins as a long-term investment from Apmex.com recently. Gold and silver have both fallen a lot from the highs. It wouldn't even surprise me if they fell more. But, I don't really care as I'm just looking to build a long-term position. Both charts of course went parabolic and are selling off. Silver looked like it came down a lot more than gold has so far. That's one of the reasons I started in the silver.

Quick Update on Stock Position Trades

ZLCS ran all the way to 2.25 intraday, however, I wasn't watching it during the day and missed any opportunity to lock in a profit. It subsequently reversed and closed lower. This is very bad price action for a breakout and I will be selling ZLCS tomorrow on any weakness. It will be about a 7% loss. UCO alternatively is acting very nicely and I plan on staying long this for some time.

Oil and Drug Trades

I'm long a couple position trades. After stalking oil for awhile I put a buy stop for UCO the oil ETF in at 29.75 a share a couple days ago. I got filled on UCO and am now long. I'd like to keep this on for weeks. I also bought ZLCS a pharma company. I got filled in the 1.90s a share. Couldn't have asked for a better print on the day. A nice hammer. I expect this to run a lot after it hits over 2.00.

What I Use for Stock Screens and a Trading Watchlist

Everyday after the market has closed I try to run though atleast 80 to 100 charts with my custom scans on Stockfetcher.com. I just use pure technical and statistical screens. I don't screen any fundamentals on Stockfetcher. For fundamentals these days I just us Graham Investor and look at NCAV stocks.

A perfect scenario when I'm scanning is to find a good looking chart first on Stockfetcher that also is a net current asset stock or deep value around net tangible assets. There continues to be a lot of stocks moving in the alternative energy industry. I've had Plug Power PLUG keep popping up in scans but I missed the last big run. I'm still watching it though. Fuel Cell FCEL has a good chart going too. If I were going to be daytrading tomorrow I would have ETRM on watch with a long bias. This is a very clean flag right here.

For possible position trades

I really like Vapor Corp VPCO. They sell electronic cigarettes. Electronic cigs are a winning industry of the future. It looks poised to breakout here again.

Delcath Systems DCTH is hovering right around net current asset value. On the balance sheet there was about $25 million in net current assets. The market cap is right around there here at $.24 a share. It's in breakdown mode so more lows look like they are coming.

Star Scientific STSI has had some bad news lately. I see it as a contrarian play in the low $1 a share area. This stock in the 10 years I pulled up price history in yahoo has always bottomed around $1 a share.

MEET Flag Setup

I've had MeetMe Inc. ticker MEET on my watchlist since it made that big run about a week ago. It's started a flag on Fridays run with light sell volume on the flag and looks poised to continue to run again. I am going to put a buy stop order in at 1.87 a share. I also added LEE XXII JKS to the watchlist.

Trading Range Breakout For Crude Oil

This is a followup to the post I did on crude oil in June. The triangular consolidation on crude had been forming for a long time. Crude finally broke out of the ascending triangle. This is a very bullish chart still and I wouldn't be surprised to see a 110 retest. Triangles are very powerful chart signals. I drew up a new chart and I posted it below. The trend line breakdown I circled was very telling of what direction it was heading. That was definitely a failed signal.

I sold my KWT solar etf position for a slight loss at $46. I didn't get an ideal entry and didn't like the price action so a stop loss is a stop loss. I'm thinking of uploading some video posts in the near future here. I'm looking for a good desktop video software so I can show what I'm talking about simultaneously.

Looking at Net-Net BAMM and Short Watch GNIN

Net-Net BAMM I am currently looking for some net-net's and deep asset value worth writing about. After spending some time going through a stock screen I found Books a Million (BAMM) to be one of the most compelling net current asset stocks I saw for the time being. In looking in the stock market sewers for deep value stocks one can often find somewhat of a diamond like Silver Leaf Resorts SLVF or Adams Golf ADGF were. I'm not sure if BAMM is a diamond but it is something to look at if the stock price gets a lot cheaper. So I think it is something to just watch as the price here at $2.40 is just below net current asset value.

Short Watch Green Innovations (GNIN) Green Innovations (GNIN) traded over $7 million shares Friday and is currently going full zombie. It's up from $1.00 to $2.75 just this month. It's been running everyday and buying volume is eventually going to get exhausted. It's been volatile on the way up so it will be volatile on the way down. To short a momo stock like this it's a bad idea to short when it is green (positive) on the day. It needs to crack the previous days close before it is a short setup. The setup is going to be here very soon. Could even be Monday or Tuesday.

Dry Bulk Shipping Stock SHIP

Hello folks. I put this shipper Seanergy Maritime Holdings Corp. (SHIP) up on Twitter about a week ago after the dry bulk shipper post. SHIP is a low floater. It has a small float and it only has a market cap of $26 million. It has run especially well along with all the other shippers. It's a really good one to trade because of how volatile it is. Very high day range. It had a huge run in January from $1.20 to $2.70 a share. It just printed a hammer off this new flag. Right now it definitely looks like another flag because of the decreasing sell volume I drew the red lines over.

ABK Ambac Financial

ABK's consolidation here around resistance is forming a nice looking triangle. It's congesting right around resistance which is very bullish. Add that healthy consolidation and this is a good set-up for a buy here on any pop in price. Especially on heavy volume over 1.81. I'm going to front run it and nibble on it here today. These are the kind of set-ups(triangles) that have been working so well lately.
















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ABK really gave off some easy signals to read in hindsight. There was a hammer at the bottom on 8-17 and a doji off that recent consolidation.



full disclosure:no position at time of writing. Order pending.

Trading Update

I sold ABK at 1.90 because it popped huge just like I expected. My cost basis on ABK was 1.67 so I did about 13% on it. I'm up some in KEME and INHX I'm about breakeven. INHX if you've been following me has been great if you could have gotten some off the 1.08ish bounce that I was looking for. I messed up the order and got a 1.20 buy fill the other day for INHX.

INHX and KEME are ascending triangles. INHX is a drug stock so I am not the most confident there will be a nice pop but it is looking good so far. I could have sold at 1.30ish but I'm swinging these until the price action occurs at the tip of the triangle or I stop out. So far I'm really happy with the success of this consolidation pattern(triangles), especially recently. I think from now on in up-trending overall markets this will be a great swing trading strategy for me. The stop loss is easy to place and the volatility off of the consolidation pattern produces nice runs like an NCT for example.

DITC is a value stock right above net current asset value I am liking the price action of right now.

full disclosure: long INHX and KEME

Stock Picks Are On Fire

You might want to just bookmark and check the blog every morning to catch fresh posts. For me atleast Feedburner email posts tend to be late a lot. I get my own posts with email feed to make sure the feed keeps working ok and sometimes the posts will come in up to one or two days late.


I'm going to boast a little on how well stocks I put up on this blog have done lately. I'd imagine if you all were watching these you might have commented. But then again since I started to find my groove these past few months in many different strategies I guess great picks are more common now. Boasting how well my watches do probably gets a little old but this past week has been amazing as you are about to see. I'll cut down or cut out the praising my own picks in the future. If your new to the blog or are passively just reading I just want to give you the heads up. I find winners in all types of markets. Bull or bear. Unlike other pure value investors who are sucking their thumb right now trying to find potentials.

My financial picks from the other day which included GNW and HIG among others did amazing if you saw that. I mentioned NCT in that post just yesterday and it was one of the top gainers today 20% gain along with SPDE. Remember SPDE? SPDE was up 118% today! ARNA was in that watchlist to and it was up big after hours today. Both of these stocks ran after triangular consolidation. I knew ARNA was a good watch because of how it has run in the past. It likes to squeeze shorts too. ARNA was the stock I predicted and won Timothy Sykes price target contest with.

I made a statement some months back that this is the best blog for net-net(net current asset) ideas. In 2009 I had 25 winning net-net picks and 4 losers. Since all of those were just ideas I measured their performance as if someone bought them the day after they first appeared on the blog and held through the stocks runs. With most of the ideas it would have been hard to lose money because you just had to wait for some gain and sell. Someone didn't think those picks were good and mentioned Greenbackd.com as the best site for net-nets even though my ideas went on for the biggest percentage gains. Remember I found PIR at rock bottom among other gainers. Well, so far it is looking like I might not even have to separate this blog from the small handful of other top net-net blogs maybe. I left a comment in Greenbackd's post because they were asking for comments on the market. http://greenbackd.com/2009/09/16/ring-the-bell-announcing-the-inaugural-gizzard-squeezer-gong/

EDIT: apparently, Greenbackd comments section posts newer comments at the top of the comments where I never expected them to show up. Disregard the next paragraph.

I tried to post a comment that I thought the last couple decades was fantasy so it is very likely the indices will not see new highs for a very long time. I also said check out ADPT because the activists are getting busier in that stock. I tried to post the comment because I thought it was appropriate and with good intentions. The comment form had a standard name entry space and url. I used my name and the url to my blog. Their blog has moderator approval on for comments and for some reason they have yet to approve my comment. If they don't want people using a url along with their name I don't see why they would even give that option. Do they not like intelligent comments? Are net-net comments inappropriate for a deep value site? Hmmm, I wonder why this site would be a threat to their readers? ; )



full disclosure:no positions

Financials Still Strong

The stock watchlist I put up the other day when financials were at technical support levels has done pretty good. Actually really good. GNW since that list ran from $9 to $13, 40% run. HIG is over $28 now. RAS took off. SUPG is breaking out a little here. SBGI is up a $1 to $3.80. I put that list up because financials had flagged down and if the run was going to continue those were some of the best financials to try and trade the possible move with. I'm sure there are some compelling fundamental reasons institutions are accumulating them. I don't really care because I can just see their footprints.

FRZ and KEME are still consolidating. I'm still going to keep an eye on KEME and SUPG. NCT is breaking out. I'm long INHX and am looking for a breakout. It's slowly moving up with higher highs. I didn't get the price I wanted. I wanted a conditional trigger buy if it fell to just over $1 at 1.08 but I got filled at 1.20 I think. Still will be good if it breaks out. It sure has found support right around $1 these two days though.

full disclosure:long INHX

Stocks To Keep On Watchlist

ADPT had a big volume spike the other day when it ran over resistance. This was a good entry point and see how it bounced off support in the upper $2.80s where I liked the stop loss just below? I don't BS with these stocks. Especially net-net's. This set-up is still here. It just tested support(former resistance) and could just breakout or consolidate again. A new entry would be best on a breakout I feel because the best stop off of a new entry isn't to clear to me. A stop loss for a breakout entry over 3.13ish would be 2.95.

















PGV is back in play. This thing loves to run. DEAR is in play and is a bank so you know what the appetite can be like for a stock like that. Huge run though. Would be surprised to not see some consolidation. These stocks I just throw up on watchlists are ideal for daytrading and are just watches. If I do an entire post on a stock I really mean business on it. BSTK from the other day ran 90% that next day.




full disclosure: no positions

Trendline Charts

I longed FSII. I'm just looking for 8% or so because I'm chasing it and I'm going to use a mental stop loss if it breaks this trend line on any decent sell volume. Click on these pics to get a bigger image.



















EGMI's trend I drew up has held up as it has bounced nicely off it. It's really amazing how much information the market will give you if you look at it. On the first pull-back volume decreased on this stock until it bounced off trend line. Similar on this second pull-back where I drew the down arrows. This last time though all the sellers shook out in a crescendo and it made a bullish engulfing pattern.



















full disclosure:long FSII

Festival of Stocks at Modern Graham

Check out Modern Graham and the festival of stocks for some investing articles. My post I did on IFON and LDIS is there. I just took off my IFON for a gain of 20%. Post coming up on that and on my 2009 net-net performance.

Net-Net IFON Trade

I'm glad I learned technical analysis because it really helped me out with IFON. Actually, the way it is going right now it may have been the difference between a nice gain and tiny profit or loss. I used that red trend line(in my platform though) to see that the bull run was still alive after it had fallen back to $1 and slowly started creeping up around the same trend line. After I longed it at $1.58 all I did was watch it continue up the line. As it approached the $1.99 resistance from the other week(first red line) without breaking it strong intraday I saw the potential for a double top and pull-back. Not worth the risk of loosing the profits because of that possibility so far into this run it has had. I actually sold it yesterday at 1.92 before that last red day on the chart which is today's action. This exit looks about perfect right now because yesterday IFON only hit a high of 1.96. And right now it is looking like that was the end.

It very well could get a push over $2 but there is just something about those round numbers. Notice it never traded at $2. And I noticed that the buying has been coming every day and that had to end eventually. Drew that with a black circle. I was also thinking about the valuation. No longer in net-net territory here and not the kind of net-net I know well enough to run past that valuation. A buy right around $1 off that pull-back would have been sweet in retrospect because the technicals were there for it to be had but I'm happy with this trade. I had a loss today chasing a momo penny stock so this is offsetting the loss.



full disclosure: no position