The Past Week in Review:
Since Last Week’s Watch List, I’ve gotten a little more active with my trading. Within just a few days, I opened and closed seven new trades. I also have two additional open positions. It seems like the market is starting to heat up with Summer coming to a close and Fall moving in.
Gains: CYCC +11% NLNK +9% LXU +8% GPRO +8% Losses: ACTG -3% SIEN -3% APRN -1%
There were a ton of great setups that I felt could help wipe away my recent ROX loss, so I took full advantage. I had a few losing trades in the mix, but notice how I kept them small. All positions were similar in size, so the end result was some solid gains for the week. I probably won’t keep up this rapid trading pace, but I’d like to keep the momentum rolling.
Open Positions
WTW (Weight Watchers International, Inc.): I made another move on this ticker after a couple months of monitoring. This is one I’ve been trying to catch since My 7/10 Watch List, but it kept grinding higher above my bid. Then when I finally entered, I was met with a quick drop and stopped out for a -2% loss, right before it shot back up on solid earnings. It’s currently experiencing a short-term pullback from $49 to $42 and starting to trade sideways. I think this will hold above its 50-day moving average and continue the upward trend. My goal on the trade is $45. Currently holding shares at an average price of $42.50.
CDTX (Cidara Therapeutics, Inc.): I added this to Last Week’s Watch List and it seems to want to continue moving up toward $7. I left room to add closer to the $6.25-6.50 level, but I’m currently holding shares at an average price of $6.75. This is a classic Biotech Catalyst Swing Trade as taught by Kyle Dennis at Biotech Breakouts. They have Phase 2 Date For Candidemia scheduled for 4Q and I’m expecting a solid run-up as we move closer to that event. My goal on the trade is $7.50-8.00.
Closed Positions
CYCC (Cyclacel Pharmaceuticals, Inc.): Bottoming play on a cancer stock that had volume come into it. I took profits from $1.70-1.88 on the candle circled below. It even made it as high as $2.13 today before losing steam.
NLNK (NewLink Genetics Corporation): This was purely a momentum play that put in huge candles two days in a row. It started pulling back a bit on day three, but then looked strong again near the open on day four. That’s where I entered, profiting on a quick $16.95-18.40 move before pulling back yet again.
LXU (LSB Industries, Inc.): Oversold play that built a nice base around $6. I profited from $5.99 to $6.48. It’s continuing to carry the upward trend above $6.50. I’m continuing to watch this one for another potential trade on a break above $7.
GPRO (GoPro, Inc.): Another momentum play. Gapped up and held above $9.75. I profited from $10-10.75.
ACTG (Acacia Research Corporation): I was fishing in the right pond, but stopped out before this one made its move above $4. I entered at $3.75 and exited at $3.65 for a small loss. I was playing the breakout of the $3.60 level, but it didn’t move fast enough for my liking. When playing some of these charts based on technicals alone, I don’t like to be holding positions all that long.
SIEN (Sientra, Inc.): Again, I was fishing in the right pond, but didn’t give it enough of a chance to play out. I noticed this one made a new 52-week high two days in a row, and with the market looking strong, I took a shot on day 3. I entered at $12.89 looking for the $13 break, but I got stuck in that red candle and ended up stopping out at $12.50. As a result, I missed today’s huge 20% move to $15.
APRN (Blue Apron Holdings, Inc.): Recent IPO that fell from $11 to $5. It’s been trading in a right range for a month now and I think a breakout could be coming. This chart is still in play, but I gave this one a few days and it didn’t want to move. In at $5.40, out at $5.33. If volume comes in and/or good news hits, this one has the potential to move quite a bit with 50% short float.
New Stocks to Watch:
LQMT (Liquidmetal Technologies Inc): After Locking Up a 30% Gain on this one last week, it pulled back to the $.30-.34 range just as expected. This was about as predictable of a trade as it gets. Every year before the new iPhone release, it experiences a run-up into the event. I took my profits on the move and didn’t take the chance of actually holding through the event itself. I’m now looking to enter yet again. I would’ve started building a new position yesterday and today, but I ran out of available funds in my account. I’ll be looking to add tomorrow in the mid to low $.30’s in hopes that the new CEO can turn this company around and start landing deals with big-name companies.
I’m also watching CBAY (continuation pattern starting to breakout) and EGLT (bottoming pattern starting to trend steadily upwards).
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